If you are in a cleaning business, you must agree that it’s a busy occupation. While professionals in the industry don’t get much free time, they don’t get much time to think about calculating their taxes. However, due to this busy schedule, you might be missing out on various deductions and savings you are likely entitled to. This quick guide will take you through what you should know to do the calculations and your tax returns right.
Salaries Versus Allowances
You might be pretty clear about what a salary means. But you might be calculating it wrong by adding your allowances and reimbursements to it. Salary covers the income part that’s included in your payment summary. Allowances refer to compensation for certain expenses, performance, or risky jobs while at work. For example, you might be getting allowances for travel and meals while at work. But not all of them qualify for the deduction and you should check with a taxation expert for the best advice.
There’s a clear line of difference between allowances and reimbursements. An allowance is the extra sum paid for good performance or taking up extra work and reimbursement is the return against what you spent for the job. For instance, if you are buying tools and equipment for work, your employer may or may not pay you for that. Getting the money back from the employer after spending it for the job falls under reimbursement.
And if you are not reimbursed a sum, you can claim a deduction for the same, provided you have proper receipts. While you can claim for things like tools, clothes, and more spent particularly for the job, a Toongabbie accountant can make the exact calculations for you.