M J Heywood & Co
Chartered Accountant
 

Address:
Suite 407
1 Princess St.
Kew, Vic. 3101

Phone:
613 9853 1234

Fax:
613 9853 1023

Email us

Liability limited by a scheme approved under Professional Standards Legislation

 Latest Accounting News Service
Hot Issues
Small businesses may ‘collapse under strain of payday super’, IPA warns
ATO’s hands tied with scrapping on-hold debts, expert says
What Drives Your Business Growth and Profits?
Australian Taxation Office (ATO) shifting to firmer debt collection activity
Why employee v contractor comes down to fine print
Sharing economy reporting regime for platform operators
Countries producing the most solar power by gigawatt hours
Illegal access nets $637 million
Accessing superannuation benefits.
Does your business have a company Power of Attorney?
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
GrantConnect
2 in 3 SMEs benefit from instant asset write-off, survey reveals
Updated guidance on R&D claims
Do you know how to recover debts?
Wheat Production by Country
Types of small business benchmarks
What is a Commercial Lease?
ATO warns advisers against suspect R&D tax claims
The year of workplace law upheaval
How to Resolve Invoice Payment Disputes
Raft of revenue tweaks in MYEFO to raise millions
The Countries that Export the Most Wine in the World
Articles archive
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 2 April - June 2007
Quarter 2 April - June 2006
Quarter 2 April - June 2005
ATO, mid-tiers warn on common expenses myths

BE CAREFUL - As the ATO continues to ramp up its focus on scrutinising work-related expense claims this year, two mid-tier firms are urging SMEs to educate themselves on common tax time myths that commonly catch out their clients.



       


 


This year the ATO is using real-time data to compare taxpayers with others in similar occupations and income brackets, to identify higher-than-expected claims according to ATO assistant commissioner Kath Anderson.


“It is important to know what you’re eligible to claim before lodging your tax return and to make sure you don’t claim more than you’re entitled to. Many taxpayers don’t have a good understanding of what deductions they can claim, and believe they can claim for items which they in fact can’t,” Ms Anderson said.


“The ATO scrutinises every return. We have the technology and experience to detect non-compliance and we are continuing to catch taxpayers who are deliberately doing the wrong thing.”


Moore Stephens business advisory partner Matthew Free told Accountants Daily that SMEs have a number of common misconceptions about work-related expense claims and that his advice to businesses is “if in doubt, then ask the question”.


Mr Free said that common misconceptions exist around training and home office expenses.


“Self-education and/or staff training can be claimed either by the business as training or by the employee as a self-education cost, but only where the employee incurs the expense. The study must have the necessary nexus to the income currently being earned by the employee,” he said.


“For home office expenses, you can only claim a set rate per hour of usage to cover outgoings such as electricity and heating. Do not claim a percentage of mortgage interest or rent based on the size of the home office.”


HLB Mann Judd partner Peter Bembrick also spoke to Accountants Daily about claims where businesses often stumble such as insurance and business trips.


“While income protection insurance is an important tax-deductible item, other insurance premiums for TPD, trauma and life cover are not deductible,” he said.


“When you travel interstate or overseas you are allowed to claim the reasonable allowance rates for food, accommodation and incidentals. This amount is often overlooked and without substantiation you can claim up to the ATO rates published.”


Mr Free and Mr Bembrick have both seen some strange claims over their time as accountants.


Some of the less conventional but allowed claims Mr Free is aware of include Xbox consoles, Foxtel, ping pong tables and pool tables by businesses to boost team morale and efficiency, swords by professional sword swallowers, and make-up to prepare dead bodies by funeral parlours.


 


 


LARA BULLOCK
21 Jun 2017
accountantsdaily.com.au




26th-June-2017