Hi all,
I've been employed by my company since last financial year on a contract, with an agency as the middleman. My salary received is classified as "Personal service income" according to them.
When I tried to file my taxes and add work from home deductions, it won't allow me as it says it's only if I received wages/salary. Just wondering if anyone knows how to add that or if receiving PSI makes me not eligible for it.
The agency hires me as a casual, then hands us contracts to work with the main company for a certain duration. So after the duration is up and the main company doesn't need me anymore, we're not under any form of employment.
I would have a read of Claiming deductions when receiving PSI.
If the expenses are a legitimate expenses incurred as part of producing the income you should be able to claim.
Are you submitting quarterly business activity statements (BAS)? If so, you possibly should be claiming those expenses as part of the BAS.
If this is your first year of working in this arrangement you may find that you can defer your tax payment until May 2021. This may be beneficial if you have a home loan with an offset account. However, when you submit your taxes, the government will come for full year of taxes, plus it will estimate your tax payable for the first 9 months of the year, so make sure you don't spend the money.
I would speak to an accountant for some proper advice.
Wouldn't you just add that in "Other work-related expenses"? https://www.ato.gov.au/individuals/income-and-deductions/ded…
What business structure do you have? Are you an employee of the agency, or do you have your own company with an ACN, or are you a sole trader with an ABN?