Keep accurate records:
Keep records of all your income, such as salary or wages, tips, pay slips, bank statements, and receipts for any work-related expenses you incur. Regarding tips, if you receive tips as part of your income, make sure you keep track of them and declare them too.
Equipment and tools:
The cost of tools and equipment you provide to a business such as scissors, aprons, hair dryers, hair straighteners, clips, clippers, razors, and combs, etc. can be claimed as a deduction. If you purchase these items, you can claim the full cost in the year of purchase. If you are leasing or renting equipment, you can claim the cost of the lease or rental payments.
The cost of products you provide to a business such as shampoo, conditioner, treatments, serums, toners, colours, hair spray, hair gel, pomade, and shaving cream, etc. can also be claimed as a deduction. It is essential to keep receipts or invoices as evidence of purchase.
Training and education:
The cost of training and education related to your hairdressing and barbering skills can also be claimed as a deduction. This includes courses, workshops, and conferences related to the industry, such as hair-cutting techniques, shaving, skincare, and customer service.
If you are a member of a professional association related to the hairdressing or barbering industry, you can claim the cost of your membership as a tax deduction.
The cost of insuring your equipment and stock may also be claimed as a deduction.
If you travel for work-related purposes, such as attending industry conferences or training, you can claim deductions for expenses such as accommodation, meals, and transportation.
You can claim depreciation on assets or equipment you have bought and have used in your role.
As a hairdresser, stylist, or barber, it's important to keep in mind that all deductions must be directly related to your ability to earn money in your role and you must have evidence to support your claims. Keep in mind that if you have any doubts or questions regarding deductions it's always best to consult with a tax professional like ITP Qld on 1300 555 773 to make sure you are up-to-date and 100% compliant.