There are a number of tax deductions available for hairdressers. To ensure that you are aware of all the tax saving benefits available to you, Online Tax Australia has put together the comprehensive list below.
Most of the tax benefits come in the form of tax deductions for out-of-pocket expenses that you have incurred throughout the course of the year that aren’t reimbursed to you by your employer.
Tax Deduction for Hairdressers: Meals and Travel
- You can claim the cost of running your car if:
- You own and pay for the running costs of the car
- You are travelling between two workplaces or between your usual workplace and an alternative one, such as if you travel from your usual salon and to a hospital or nursing home for contract work.
- For more information on claiming motor vehicle expenses please , visit: Vehicle Tax Deductions
- You can claim taxi, parking and toll fees.
- In special circumstances you can claim the cost of travelling from home to work. An example would be where you have to carry bulky tools to and from various work locations because there is no secure storage space at your work.
Tax Deduction for Hairdressers: Work Clothing
- All work related protective clothing and equipment is deductible, which includes aprons and protective gloves.
- Conventional clothing is not tax deductible, even if your employer requires that you wear specific items (such as specific coloured clothing, certain brands or items etc).
- You can claim the cost of renting, repairing and cleaning any of the work-related or protective clothing mentioned above, with the following provisions:
- If your tax deduction claim for laundry is under $150, no written documentation is required. The Australian Taxation Office calculates the cost of laundry at $1 per load of work-related clothing, or 50 cents per load if other laundry items are included.
- If you are claiming dry-cleaning or clothing repairs, you are required to keep receipts.
For more information, visit Uniform Claims.
Tax Deduction for Hairdressers: Training
- You can claim the costs of self-education and training if it is directly related to your current income producing activities and role. Eg improving skills, compliance activities, understanding new trends and styles etc.
- Training for the purposes of finding a new job or change in career direction is not deductible.
- For eligible education claims expense can include textbooks, stationary, course fees and certain travel expenses.
For more information, visit Self-Education Claims.
Tax Deduction for Hairdressers: Work Equipment
- You can claim for the cost of purchasing work-related equipment under $300. Equipment may include :
- Telephones, answering machines, facsimile machines, pagers and other telecommunications equipment
- Hair dryers, scissors, grooming equipment used to provide your services
- Computers and computer software
- For work equipment costing more than $300 must be expensed (depreciated) over a number of years
- You can 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.
Tax Deductions for Hairdressers: Place of business
- 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 $0.52 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.
- You cannot claim occupancy expenses (for example, rent, rates, mortgage interest and house insurance premiums) unless meet the ATO criteria that demonstrates you are carrying on a business from that location.
For more information, visit Home Office Tax Deductions
Tax Deductions for Hairdressers: Other Expenses
- You can claim the cost of purchasing work-related books, magazines and journals.
- You can claim the cost of work-related internet and mobile phone usage.
- You can claim a deduction for hairdressing, cosmetics, hair and skin care products that are purchased for business versus personal use.
- For more ideas and advice please do not hesitate to go to our website or contact us.
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If you’ve been searching for an experienced, professionally qualified, transparent accountant that truly understands tax rules and regulations in relation to hairdressers, then contact the friendly team at Online Tax Australia today:
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