I Do My Own Bookkeeping - Tax Deductible?

mlionel20 on 23/04/2020 - 19:09

Hi all,
I have a small business, and I do my own book keeping for the business.
So scanning receipts and sorting them, researching and applying for JobKeeper, do my own BAS, paying wages & super to staff….etc

1) Is this considered home office expense that I can deduct? especially with regards to the $0.52 deduction per hour (https://www.onlinetaxaustralia.com.au/tax-tips-help/tax-dedu…)

2) If I pay myself a small wage for doing admin work (which includes book keeping), can I still tax deduct the time incurred for doing the work at home?

Thanks

Financial

Comments

  • JimmyF on 23/04/2020 - 19:13
    -8

    1 - If you do that work from home, then yes

    2 - yes, but you need to claim that small 'wage' on your personal taxes.

  • arkie0 on 23/04/2020 - 19:17

    Yes I pay myself a small wage of $1000 an hour to do this, because I'm very bad at working and bad at numbers it takes me 20 hours a week, then tax deduct those hours further.

    That means I can deduct $2,000 a week of my gross income.

    • afoveht on 23/04/2020 - 19:23
      +3

      That means I can deduct $2,000 a week of my gross income.
      $1000 an hour… 20 hours a week

      That you then add to your gross income, and pay tax on, after your accounting error.

      • arkie0 on 23/04/2020 - 20:04
        +1

        I see, so I have to spend more hours on the correction. I'll add those correction hours to my next deduction, thanks for pointing this out.

      • thirtysixd on 23/04/2020 - 20:33

        No need to pay tax since we donate money to the liberal party each year

  • Soluble on 23/04/2020 - 19:56

    Ask your accountant? Everything you have in your list is a couple of hours a week at most. Even if you push it out to 4… What $ value is the gain?

  • Mentallysick on 24/04/2020 - 07:51

    you can pay as much as your want to yourself.

  • HeWhoKnows on 24/04/2020 - 08:24

    Outgoings - yes
    Paying yourself a wage - No
    Home office has no wages because its YOU!

  • Baysew on 24/04/2020 - 13:42
    +1

    2) If I pay myself a small wage for doing admin work (which includes book keeping), can I still tax deduct the time incurred for doing the work at home?

    No.

    You can employ workers in your business, but you can’t employ yourself.

  • trapper on 24/04/2020 - 14:01
    +1

    Maybe pay your wife the wage?

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