Are you a providing your service as cleaner to your clients as sole trader, or small business owner?
Sole trader provides services using their ABN whereas other providers provide their cleaning service through their partnership ABN, Family Trust ABN and/or Company ABN.
Whichever way you provide your service, more or less, you are operating your business.
What is your income?
- Total invoice that you have raised for your service during the financial year is your income from your business.
(eg- if you have invoiced $45,000 from 1 July 2019 to 30 June 2020 as sole trader then $45,000 is your income/revenue from your ABN activity for 2020 financial year )
What are your expenses?
- Any amount of money that you have to spend to generate $45,000 as revenue are the expenses. Those expenses that are related to your business are generally deductible for tax purpose.
Tax Deductible Expenses can be:
1. Cleaning Chemicals purchased
2. Washroom products purchased
3. Buckets, brooms, Trolleys purchased
4. Bin bags, wipes, dusters, sponges to clean purchased
5. Vacuum cleaner machine purchased
6. Scrapers
7. Carpet Cleaning Machine
8. Small cleaning machines
9. Polyvacuum
10. Pressure Washers
11. Blowers
12. Carpet Cleaning machine
13. Repairs & Maintenance amount spent to repair and maintain machines, tools for cleaning
14. Personal Protective Equipments as Glasses, Masks, Gloves
15, Uniforms
16. High Visibility Clothes
17. Sun protection
18. Car expense where you are required to transport heavy items to and from your place of work (site)
19. If you are using van then Van expenses. It must not be passenger Van and has to be used to carry tools, equipments
20. Parking expenses
21. Hiring costs
22. Phone Expenses. Phone used to run your business
23. Contractor expenses. If you used contractor to outsource your work to other cleaner then the amount paid to such contractors.
24. Stationery Fees
25. Wages and salaries, super paid - if you have staff working for you
26. Public Liability Insurance
27. Workers Compensation Insurance
28. Police Clearance and related clearance according to State/Territory rules
29. Franchise and royalty fees - if you are franchisee
Remember: If you have been reimbursed any of your expense then you cannot claim it ! You need receipts / records and those records must be kept safely for at least 5 years.
If you are not sure whether your expenses qualify as tax deductions, then contact us at 08 7078 8882 or help@yogigroup.com.au
An accountant for Yogi Group Accountants and Business Advisors will get back to you.
Contact us for your taxation and accounting need
08 7078 8882
help@yogigroup.com.au
398 Payneham Road Glynde SA 5070