Do You Use Your Phone or Internet for Work?
Then you may be able to claim a tax deduction for some of the cost BUT bear in mind it is not as simple as just writing the figures in your tax return.
The process of providing evidence to the ATO to prove your claim is called substantiation. If you cannot substantiate your claim when and if the ATO ask you then they may deny any claim for a deduction irrespective of whether your claim is reasonable or not. Remember, when it comes to tax law it can be a case of guilty until proven innocent.
How to Substantiate Your Claim
You will need to keep records for a 4 week period that is representative of the year. And yes, the ATO advise you need to do this every year!
The records you will need to keep include:
+ Diary of calls made/time on internet
+ Telephone or internet bills showing costs of calls made
+ Evidence that your employer expects you to use your personal phone is also useful
Just remember that if your employer provides your phone and pays the bill or if you have already been reimbursed for calls on your private phone you cannot claim them as a deduction in your tax return.
These guidelines apply only to employee's.
We work for our clients, not for the ATO - but we are bound by their guidelines, especially so when the guidelines are as explicit as this one.
If this seems too onerous then give us a call. There may be an opportunity to restructure things to ensure you can maximise your claim for phone, internet, and any other work related costs you incur.
For more information or to have a chat about how we can help you pay the right "least" tax give me a call on (07) 5439 1600 or CLICK HERE to make an appointment with our specialist team.
Read the ATO Guidelines here