5 tax resolutions to keep next year

It’s almost the start of the new financial year. As 1 July passes, as well as lodging your 2017 tax return, it’s also an ideal time to take action to get on top of your taxes for the coming year. Get things right through the year and your actions will pay dividends come Tax Time next year when you might be able to claim some extra deductions.

Here’s out list of top new tax year financial resolutions to help all taxpayers keep their tax affairs in good shape.

1. Start keeping good records. If you think you can claim it (or even if you’re not sure) keep the invoice or receipt. If you lose it or throw it out now, you have no chance of making the claim in your next tax return. Remember the golden rule; if you spend something as part of your income earning activity (whether that relates to your job, your business or a rental property), you can usually claim a tax deduction.

2. Be organised. Don’t just throw those invoices or receipts in an old shoebox and forget about them until next July. File them properly. Better still, take a photo of each one with your smartphone and store them safely online.

3. Get an app. These days there are lots of apps on the market which allow you to record tax deductible expenses as you go and even store the receipts. Take a look at the H&R Block tax app as an example. You can also use map apps like Google Maps to plot out journeys to support your motor vehicle claims. Using an app will reduce stress next tax time and may well reduce the fee you have to pay to your accountant!

4. Keep motor vehicle record and claim expenses in 2017 – If you use your car for work purposes and intend to use the logbook method, you’ll need to keep a logbook over a representative 12 week period if you don’t already have a logbook in place (a logbook record is valid for 5 years). Alternatively, you can claim the flat rate cents per kilometre method to claim a deduction, at 66 cents per kilometre up to 5,000 kilometres per vehicle.

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5. Keep your details up to date. Don’t forget to tell the ATO (and your accountant) if your address changes during the year.

And finally….as you prepare to lodge your 2017 tax return from 1 July, get expert help from a tax agent like H&R Block. The chances are you will be due for a refund, so getting help from experts like H&R Block will ensure that you maximise access to all those tax deductions you are entitled to in 2017.

Mark Chapman, H&R Block