ATO Targeting Work Expenses

The Australian Tax Office is targeting tax claims sought each year amounting to $16 billion in work expenses including claims from,builders, real estate agents and flight attendants.

"We have found people in these industries are at a
high risk of getting their work related expense claims wrong due to the types of deductions they are entitled to claim such as motor vehicle and travel expenses," tax commissioner Michael D'Ascenzo said yesterday.

The Australian Financial Review note the ATO are to write to 116,000 people in the rundown to the end of the financial year ending 30th
June.  Among the errors targeted are failing to keep a log book or receipts for car expenses and wrongly claiming for mobile phones.

The ATO also state another common mistake is wrongly claiming the costs of driving a car hauling bulky tools to and from a work site.

Workplace expenses can keep  accountants busy with tax payers across all jobs. The time involved may be substantially reduced by using an online Tax Manager to track all legitimate expenses providing the clients accountant with accurate information as they require. Xpnsit can assist tax payers, such as builders and real estate agents and others to claim their correct tax deductions.

Flight attendants, who have to look well groomed for their work may be tempted to claim such items as make up, shaving products and nail polish.  These items are not permitted as legitimate tax deductions and Xpnsit can guide their users to their proper deductions potentially saving later  problems with the ATO.

Mr D'Ascenzo warned taxpayers to get their records in order early to lodge soon after the 2011 tax year ended and "aviod the October rush."