Cleaning Business Tax Returns and Deduction

Are you in the cleaning business? Did you know that there are quite a number of tax deductions that you should include in your tax returns? Cleaning jobs are quite demanding and for most cleaners, they do not even have time to think about tax. There are so many expenses that you incur throughout the year, which should be claimed in your tax returns. The biggest secret is to ensure that your records are in order so as to make deductions with supporting documents.

Have you ever taken the time to study and analyze your income statement? This comes with the summary of all the wages, salaries, and allowances for the given year. When filing your tax returns, you should include all the income you have earned in the form of wages, salary, bonuses, and allowances. However, reimbursements should not be included as this is not an income earned.

Salaries and Allowances

Amounts in the payment summary which are shown as income should be included in the tax returns. Allowances come in different forms and you need to be careful so as not to miss any of the items. If your employer pays you compensation for some risky jobs, this is considered to be an allowance. There are times where you may have to travel for work and your employer pays for certain expenses like meals and travel expenses. This is also under allowances and needs to be captured.

There are different scenarios that will determine if an allowance qualifies for deductions or not. If you are not sure, you should contact experienced tax experts to help you with your tax return.

Deduction on Equipment Costs

Cleaning is a task that requires the use of a number of tools and equipment. Most of the tax deductions that cleaners miss out on their tax returns are related to the purchase of cleaning equipment. If you buy sprayers, polishers, vacuums, and hoses for cleaning, you can include this in a tax deduction. However, this only applies when you pay for the equipment yourself and they have to be useful for your cleaning tasks. Most of these tools wear out pretty fast and require regular repairs and maintenance. The cost of maintaining such equipment should be part of the tax deductions in your tax return.

There are other disposable items that will wear out faster than others and all of them need to be included in the tax deductions. Some of the disposable items include mops, buckets, dusters, and cloths. In addition, there are other relevant costs that need to be included like the cost of transporting the cleaning materials as well as the cost of the carriers like boot dividers.

Cleaning Reimbursements

There are instances where you will buy or pay for certain expenses that are related to the cleaning work. Your employer may choose to pay back the amount of money incurred for such costs, and in such cases, this is referred to as a reimbursement. Do not make the mistake of confusing this on your income as an allowance as it is not. You cannot also make a claim for a deduction of expenses that have been reimbursed by your employer.

Get the Most from Cleaning tax Deductions with the Help of the Experts

Failure to make claims for tax deductions means a loss on your part and the ATO will never remind you to make such claims. However, with the help of Accurate Business & Accounting Services, your tax return will be in order and all deductions will be included. Always ensure that all your receipts and other documents are kept safe for the purposes of supporting the claim on tax deductions. Speak to one of our experts today for professional assistance. 

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