Our top Tax Tips for Tradies

Our top Tax Tips for Tradies

Whether you’re a sole trader, contractor or running your own company, we’ve got our top tax tips for tradies this financial year.

Working as a tradie comes with its fair share of challenges. One of the main issues we hear from our clients is how tax time often causes confusion and stress for tradies.

To help our tradies de-stress, we’ve compiled our top tax tips tailored for tradies. By implementing these strategies, you can make a significant difference to your financial wellbeing this financial year.


Know your deductions

If you’re not making the most of your deductions as a tradie, you may be missing out on a tax refund.

As a tradie, there are an abundance of deductions you may be able to claim, based on your job role.

Some common deductions for tradies include:

  • Tools and Equipment: You can claim the cost of tools, machinery, and other equipment necessary for your trade. Make sure you keep track of your receipts and include these expenses in your tax return.

  • Protective Clothing: If you need to wear specific clothing or safety gear for your work, such as steel-capped boots or high-visibility vests, you can generally claim them as deductions.

  • Work-related Travel Expenses: If you travel for work-related purposes, such as visiting clients or suppliers, you may be able to claim expenses like fuel, parking fees, and tolls.

The key part of making the most of your deductions as a tradie, is making sure to keep records of these expenses to support your claims.


Keep your receipts!

As previously mentioned, a crucial part of generating a higher tax refund, that can often be neglected, is providing supporting documentation.

This means saving your receipts!

Save all receipts for all purchases and transactions related to your trade throughout the year.

Small business owners need to be saving these in some form of filing system, such as cloud-based accounting software like Xero. The Xero receipt scanner app also allows users to take a photo of your receipts and the details are automatically scanned into Xero.

These receipts will be sufficient to support your deductions when filing your tax return or if you’re unlucky enough, during an ATO audit.

 If you’re the owner of a trades business, make sure you also check out our Tips for Trades Businesses Blog .


Check vehicle costs

If you use your vehicle for work purposes, such as traveling to job sites or transporting tools, you may be eligible to claim vehicle-related expenses. 

You can keep track of your mileage or maintain a logbook to accurately calculate your work-related travel. Occasionally, expenses like fuel, insurance, repairs, and maintenance can also be claimed as deductions. Just make sure that you haven’t claimed for any personal use of the vehicle.


Download the ATO my deductions app.

The Australian Taxation Office (ATO) provides a free app called ATO My Deductions. This app allows you to securely track your expenses throughout the year and allows you to store photographic copies of your receipts, making it easier to locate them when needed.

This will ensure you have all the necessary information ready to hand over to your tax agent.


Work with an accountant who is an expert in Tax for Tradies!

Whether you have a trade business to run or you’re a contractor, partnering with an accountant who specialises in trade businesses can be a game-changer.

Our team is experienced in conducting tradie tax returns, financials and all necessary lodgements, and will ensure you’re taking advantage of every available deduction and adhering to tax regulations.

Book a free consultation with Marika today to maximise your deductions at tax time.
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