Do you use your personal mobile phone to make or receive work calls? Are you claiming a tax deduction for this portion of your mobile usage?
If you aren't, you could be missing out on significant tax savings.
Many employees use their personal mobile phone for work purposes. Sometimes it’s unavoidable to call clients or other staff members on your mobile phone, where you can end up footing the bill!
You can claim the cost of your work-related phone calls as a deduction on your tax return (you can’t claim your entire phone bill).
You need to keep records for a 4-week representative period in each income year to claim a deduction of more than $50. This is good news, because if you haven't kept good records you won't have to go highlighting work numbers in your old phone bills for the past 12 months!
If you have a phone plan where you receive an itemised bill, you need to determine your percentage of work use over a 4-week representative period, which can then be applied to the full year.
If you have a phone plan where you don’t receive an itemised bill, you determine your work use by keeping a record of all your calls over a 4-week representative period and then calculate your claim using a reasonable basis.
And while you may think that you only use your phone for work-related purposes half of the time, this can quickly add up over a year.
Alice pays $59 per month for her mobile phone plan. She identifies that 50% of her monthly phone calls are work related.
50% of $59 = $29.50
$29.50 x 12 = $354 per year
It all adds up! Alice can claim $354 on her tax return as a deduction for mobile phone expenses.
Don't miss out on your best return. Secure your appointment with Verve Group today, phone (08) 8120 4877 or book online at www.vervegroup.com.au/taxreturns
Book your appointment online with a Verve Group tax guru for your chance to win a $500 travel voucher (conditions apply).