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#EveryoneNeedsaPlan to Claim Home Work Expenses During COVID 19 Lockdown
Posted by G. Dean McKinnon
on 2 March 2022
Many of us have had to work from home over the past couple years during the COVID 19 lockdowns, which means we generally have used our personal equipment to complete our work, but not all expenses incurred will be tax-deductible.
Fringe Benefit Tax (FBT) has very specific requirements for what business related expenses are tax deductible and those that are subject to FBT. Whilst FBT is payable by the employer, many employers will request their employees to reimburse them for any FBT payable, so effectively the employee may have to pay the tax.
There are some expenses which are listed as exempt under the FBT laws and therefore if these items were used as part of your work requirements, then they are generally tax-deductible to either the employee or the employer. However, during the COVID 19 lockdown many employees had to "Work from Home" (WFH) and incurred additional expenses by doing so.
The expenses the employee can claim as a result of WFH will vary depending on the type of work the employee is required to undertake at their own home and so it is strongly recommended that professional advice is sort when claiming WFH.
McKinnon Financial Planning coordinates all tax related matters for our Total Service Clients – including helping clients maximise their WFH expenses. Contact us today to arrange your free initial appointment to determine your Financial Planning requirements.
Fringe Benefit Tax (FBT) has very specific requirements for what business related expenses are tax deductible and those that are subject to FBT. Whilst FBT is payable by the employer, many employers will request their employees to reimburse them for any FBT payable, so effectively the employee may have to pay the tax.
There are some expenses which are listed as exempt under the FBT laws and therefore if these items were used as part of your work requirements, then they are generally tax-deductible to either the employee or the employer. However, during the COVID 19 lockdown many employees had to "Work from Home" (WFH) and incurred additional expenses by doing so.
The expenses the employee can claim as a result of WFH will vary depending on the type of work the employee is required to undertake at their own home and so it is strongly recommended that professional advice is sort when claiming WFH.
McKinnon Financial Planning coordinates all tax related matters for our Total Service Clients – including helping clients maximise their WFH expenses. Contact us today to arrange your free initial appointment to determine your Financial Planning requirements.
Author:G. Dean McKinnon
| Tags:Tax |
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