National Education > Tuition Advice

Dealing with transactions

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Reckoner:

--- Quote from: nino quincampoix on June 23, 2015, 12:28:00 am ---Please correct me if I am wrong, but claiming petrol is not tax deductible. Since it is not an expense incurred while performing the service (i.e., tutoring), it cannot be claimed. You could only claim petrol if the work involved driving (e.g., taxi). This should also mean that driving from one student's house to another's to render tuition does not constitute a work related expense because you would not be driving and tutoring simultaneously. (But...if you were to drive and tutor, then I suppose that you could claim petrol as an expense, but that would be very odd indeed!  :P)

Conversely, if you use the computer to teach, then it is a work related expense and as such can be claimed. I believe that you can look at depreciation of the computer as a means of minimising tax obligations?

One last thing, I think a good rule of thumb is that if something is required for you to render your service(s), then that thing is usually tax deductible (exceptions being clothes for the most part, food, etc.).

--- End quote ---

If I interpreted this correctly, you can claim for the travel between your students, just not when that travel is from/to your home. So if you're tutoring in two places, you can't claim from home to student 1, you can claim from student 1 to student 2, and you can't claim for student 2 to home.

I think anyway. I am not an accountant etc.

S33667:
I'd use this rule of thumb.   If it would be to your advantage to be able to show a regular source of income (ie for a loan application for a car or what not), then I would declare the income.   If not pocket the cash.   Ideally get your payments in cash not deposited into your account as it allows you the ability to decide how much income you actually received for the year (ie you may only declare a portion of your income).   

If you are going to lodge a return keep a receipts for anything that you may be able to claim later (stationery, phone bills, internet etc) as long as you can substantiate how they (or a portion of the expense that you claim) was relevant to running your business you'll be fine.

Is this tax evasion ?   Essentially yes if you earn enough to fall into a taxable bracket but imho who cares, you're taking the initiative to start up your little business when there's whole generations making no effort but sitting on their arse claiming the dole each week. 

Russ:
You may or may not be able to claim petrol. I'm not an accountant, I was making a generalised comment based on a recent article I read.

heids:
I'll do my best to do it legally/honestly.  (But I'm not sure - since I use public transport, I have to walk some of the way, can I claim for shoes because walking wears them out? ;))

Anyway, thanks all, replies have been appreciated :)

nino quincampoix:

--- Quote from: Reckoner on June 23, 2015, 01:16:23 am ---If I interpreted this correctly, you can claim for the travel between your students, just not when that travel is from/to your home. So if you're tutoring in two places, you can't claim from home to student 1, you can claim from student 1 to student 2, and you can't claim for student 2 to home.

I think anyway. I am not an accountant etc.

--- End quote ---

I stand corrected: Yes, you can claim petrol as an expense between visiting the premises of multiple students. Apologies.

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