You either love it, or loath it! Tax Time… That time of year when businesses are making sure all their accounts in order – But what about for your personal accounts?
Are you super organised? Do you have all your paperwork sorted and filed away ready for Tax Time?! If you have, well done!
If you’re not, don’t worry, we have provided some tips to help you get ready for tax time:
- The easiest way to keep track of your claimable expenses is to use a simple Excel spreadsheet. Split the columns into categories such as:
- Uniform
- Cleaning
- Car expenses/fuel
- Kms travelled for work purposes
- Parking (if for work purposes)
- Phone – home and mobile
- Books and Stationery
- Training Courses
- Internet/Electricity (if applicable)
- Rent (if applicable)
- Donations
- Misc
Note: if you have a copy of last year’s tax return you can quickly see what you claimed for, which means you can break down your spreadsheet easily into the correct columns.
- Number each receipt as you receive them.
- Enter them into the spreadsheet.
- File your receipts away – This can be as basic as putting them into an envelope marked with the relevant month and storing them in a shoe box, or it can be as complicated as you like, as long as whatever system you use, works for you.
It’s that easy!
When your employer gives you your Payment Summary (PAYG), you are ready to do your Tax Return, either by going online: https://www.ato.gov.au/Individuals/lodging-your-tax-return, or by seeking a Tax Professional or Accountant.
Food for Thought:
Are you struggling to save money? Do you have a goal you are aiming towards such as a, new house, holiday or maybe a wedding you are planning or attending? If you do struggle to save money, Why not pay extra tax each pay period? Most employers are happy to assist you with this.
You’ll be surprised how quickly you adjust to having less money to spend and come Tax Time, you get it back in a lump sum. So instead of paying out for that deluxe coffee on your way to work every morning, why not put that into extra tax payments. And that is just one way you can add to your tax savings there are many other ways to improve your tax refund if you choose to look at your weekly outgoings.
You do need to bear in mind that you won’t get interest on the extra money you pay like you would if you put it in a bank, BUT, if you cannot save, this may be worth trying.
Look at it this way, if you paid just $25 a week extra into your tax at the start of the financial year, you will have saved $1,300.
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Written by Deb Reynolds