Tax deductions for beauty therapists are varied and extensive. We understand that lodging a tax return can be a stressful process, particularly if you’re not too sure exactly what you’re entitled to claim. That’s why we’ve put together the guide below; to ensure that you’re full aware of all the tax benefits that are available to you as a beauty therapist.
The majority of the tax deductions for beauty therapists take the form of out-of-pocket expenses, incurred over the course of the year, for which your employer does not reimburse you.
Tax Deductions for Beauty Therapists: Meals and Travel
- You may claim the cost of your personal car if it is used for work purposes, including travel to meetings, conferences or training that is not held at your usual place of work, or to visit your customer/client sites. If you do plan on claiming the cost of using your personal vehicle, you will need to keep a diary of trips in order to provide an estimate of the number of kilometres travelled. For more information on tax rebates for vehicles, visit: Vehicle Tax Deductions.
- You can claim taxi, parking and toll fees, as long as the travel meets the above requirements.
- You can claim the cost of travelling to and from work if your home is a base of employment or you have to carry bulky equipment that cannot be securely stored at work.
For more information, visit Work Related Travel Expenses.
Tax Deductions for Beauty Therapists: Work Clothing
- You can only claim the cost of purchasing, laundering and repairing clothing that is part of a compulsory uniform that you are directed to wear or protective clothing.
- You can claim for non-compulsory uniforms if your employer has registered the uniform with AusIndustry.
For more information, visit: Uniform Claims.
Tax Deductions for Beauty Therapists: Training
- You can claim the costs of self-education and training if it is necessary to your current job, meaning it will improve your skills and knowledge or help you to increase your income
- Education expenses that relate to finding a new job cannot be claimed as they do not relate to your current income generating activities.
- Costs include textbooks, stationary, course fees and certain travel expenses.
For more information, visit: Self-Education Expenses.
Tax Deduction for Beauty Therapists: Work Equipment
- You can make an immediate claim for the purchase of work related equipment under $300. If the equipment cost more than $300 you can claim depreciation expenses over the life of that asset.
- You can also claim the cost of any necessary repairs to work equipment.
- You can claim the cost of insuring work-related equipment. You can also claim the cost of interest paid for borrowing money to purchase work related equipment.
For more information, visit Tool and Equipment Expenses.
Tax Deduction for Beauty Therapists: Other Expenses
- If you work from home you can claim additional expenses such as, heating, cooling, internet, phone bills). This only applies if you own the business and don’t get paid as an employee. If you want to claim this expense it’s important you keep a diary that outlines the hours you used your home for work and the hours, you can only claim the percentage of expenses that were used for income earning activities.
- The cost of making work-related phone calls, provided you keep the itemised bill.
- Home Office – If you perform some of your work from your home office, you may be able to claim a deduction for the costs you incur. The Taxation office allows a deduction of $0.45 per hour to cover the expenses of heating, cooling, lighting and depreciation of general office furniture such as chair and desk. Expenses such as stationery, telephone, internet, computers, etc can be claimed separately.
- Purchasing work related magazines, journals and periodicals.
- You can claim costs related to attending performances, competitions or events at which you are employed.
7 Great Reasons to Choose Us
- Comfort that an experienced, professional tax agent checks every return before its lodged with the ATO.
- Access to professional, experienced, qualified, transparent accountants who will answer all your questions and provide jargon-free advice.
- Convenient, fast and simple to use software exclusive to OTA. Tax returns can be completed in 15 minutes from the comfort of your home or office.
- Affordable, fixed price fee (which is completely tax deductible).
- Tax refunds within 10 to 14 days from lodgement (subject to ATO processing).
- Safe, secure, ATO-approved website that is operated with absolute integrity.
- Free to try. No obligation. Should you complete a return and decide not to submit it for review and lodgement by us then no fee is payable.
Contact Online Tax Australia for All Your Online Tax Return Needs
If you’ve been searching for an experienced, professionally qualified, transparent accountant that truly understands tax rules and regulations in relation to beauty therapists, then contact the friendly team at Online Tax Australia today:
- Call us on (03) 9852 9051
- Email us at firstname.lastname@example.org