Didn’t keep the receipt? That may not be a problem. Discover what you can claim on tax without receipts. Why miss out on legitimate deductions. Let’s get into it.
Can you claim a business expense without an invoice?
You can claim some business expenses without an invoice, but it is always best to have supporting documentation. These can be receipts or bank statements and will help back up your claims. If you don’t have an invoice the Australian Taxation Office (ATO) may request additional evidence to support your claims.
Example of business expenses you can claim
For example, you can claim small expenses, such as stationery or telephone costs, without receipts if the total claim is under $10. However, if the expense is over $10, it is recommended to keep receipts or bank statements as evidence.
For more substantial expenses, such as computer equipment or business travel, it is advisable to keep invoices or receipts. This will help you to demonstrate to the ATO that the expenses were actually incurred and were for business purposes.
How many business kilometers can you claim without receipts?
If you travel a lot you may want to know how many kilometers or how much fuel you can claim without receipts.
You can claim up to a maximum of 5,000 business kilometers without written evidence, such as receipts or logbooks, for the financial year. This means that you can claim cents per kilometer for work-related travel without written evidence, up to the 5,000 kilometer limit.
It’s important to note that if you exceed this limit, or if you have a mixture of both private and work-related travel, you will need to keep written evidence, such as a logbook, to support your claims. A logbook should be kept for a minimum period of 12 weeks and should detail the date, reason for the journey, odometer readings, and the number of kilometers traveled.
Common tax deductions without receipts
The following is a list of common expenses that you can claim without receipts in Australia:
- Work-related clothing: You can claim the cost of purchasing and cleaning occupation-specific clothing, protective clothing, and uniform without receipts if the claim is under $150.
- Home office expenses: You can claim a portion of your home running expenses, such as electricity and gas, without receipts if you use a room in your home as a dedicated workspace.
- Self-education expenses: You can claim self-education expenses, such as course fees, textbooks, and equipment, without receipts if the expenses are related to your current job and the total claim is under $300.
- Gifts and donations: You can claim gifts and donations without receipts if the total claim is under $10.
- Tools and equipment: You can claim the cost of tools and equipment, such as a briefcase, calculator, or smartphone, without receipts if the total claim is under $300.
What happens if you get audited and don’t have receipts?
If you get audited and don’t have receipts to support your tax claims in Australia, it can result in several consequences.
- Disallowed claims: The ATO may disallow some or all of your claims if you don’t have adequate evidence to support them.
- Penalties and interest charges: The ATO may impose penalties and charge interest on any additional tax that is owed because of the disallowed claims.
- Further audits: The ATO may conduct further audits if they believe that you have a pattern of making unreasonable claims or failing to keep proper records.
- Legal action: In severe cases, the ATO may take legal action against you for tax evasion or fraud.
How can I prove my expenses without receipts?
If you don’t have receipts to support your business expenses on your tax return, there are still some ways to prove the expenditure to the Australian Taxation Office (ATO). Here are a few options:
- Bank statements: You can use your bank statements to show that you incurred the expense. Make sure to highlight the relevant transactions and provide explanations for each expense.
- Pay slips: You can use your pay slips to show that you incurred the expense as part of your employment. This is particularly useful for work-related expenses such as travel, uniform, and tools.
- Written evidence: You can provide written evidence, such as a diary or logbook, to show that you incurred the expenses. This is particularly useful for expenses such as gifts, donations, and self-education.
- Statutory declarations: You can provide a statutory declaration from an independent person, such as a co-worker or friend, to support your claims. The statutory declaration should describe the nature of the expenses and the circumstances under which they were incurred.
- Other supporting evidence: You can provide other forms of supporting evidence, such as photos, email correspondence, and contracts, to show that you incurred the expenses.
In conclusion, while receipts are the preferred form of evidence for tax purposes, there are other ways to prove your expenses if you don’t have them. However, it is always a good idea to keep receipts and other forms of supporting evidence to back up your tax claims.
A simple solution
At creditte chartered accountants & advisors we help you to legally maximise your business tax claims, even without receipts. With good tax planning and cloud accounting software we help you avoid situations like this even happening in the first place.
Take a look at our services or chat to us about how we can help your business.
