COVID-19 Update: Prioritising our clients' and associates' health
Many people who work in sales and marketing are great in creative industry when they’re at work. But then they lose a lot of their enthusiasm when it comes to crunching the numbers at tax time. Don’t lose heart – the annual tax season is actually ripe with opportunity, if you look at it the right way and get the right advice. There are lots of legitimate tax deductions you might be eligible to claim as part of your job, and our tax consultants here know all the rules so we can help you maximise your ultimate refund.
Sales and marketing has expanded enormously in recent years, and in addition to the more traditional roles such as marketing manager and sales director, this area now also includes people working in content roles, strategic planning, digital marketing and social media.
If you work in a sales or marketing role in a company, your employer will give you an income statement or payment summary that will outline all of your salary, wages, allowances and bonuses for the financial year, and this is the document you need to use as the basis for your annual tax return.
You are allowed to claim deductions on any money you have spent during the financial year on products or services that are directly related to earning your income. But be warned – for the deductions to be valid, you need to have spent the money yourself (it can’t have been reimbursed by your employer) and you need to keep a legible record of the expense such as a receipt or invoice.
There is a wide range of deductions you can claim when you work in sales and marketing, such as:
There are several key expenses you can’t claim, including:
Record keeping is very important when you’re claiming deductions and it’s a good idea to create an easy and reliable system to help you keep on top of this throughout the year. You don’t need to keep physical receipts, and it’s acceptable to keep a digital copy (such as a photo of a receipt or an email receipt) provided it is possible to read:
You also don’t need to keep receipts for expenses under $10 (as long as these don’t cumulatively come to more than $200) and for any hard to get receipts, it’s sufficient to make a note of the purchase in your diary of all the above details.
It’s important that you take lots of care in putting together the information and supporting documentation when filing your tax return, and only claim deductions that are genuine to avoid penalties and possibly even prosecution from the ATO.
But we all make innocent mistakes sometimes and if you realise you’ve submitted any incorrect or unsubstantiated claims then you should contact your accountant immediately and they will assist you in making the necessary amendments .
Still have some questions about lodging your tax return? Talk to H&R Block. Our experienced tax consultants will be able to help. Call 13 23 25 for details or find your nearest office and book an appointment online.
Our H&R Block accountants are now working online. Book an appointment with an expert.