Maximise Deductions Personal Trainers

Tax Tips for Personal Trainers: Maximise Your Income Tax Return with Deductions

Personal trainers generally incur various expenses in connection with your work that can be claimed as tax deductions. Knowing which expenses are tax deductible, how to claim them, and how to substantiate your claims can help you maximise your tax benefits and avoid common problems. We will show you what you can claim so you get the maximum refund with your Gotax online income tax return.

Index

1. Deductible Tax Expenses
   • Work-Related Clothing and Laundry
   • Fitness Equipment
   • Educational Courses and Certifications
   • Travel Expenses
   • Insurance and Membership Fees
2. Common Incorrect Claims
3. Learning Points
4. Track your Expenses
5. Looking to get an ABN and start a business?

1. Deductible Tax Expenses

Work-Related Clothing and Laundry

What You Can Deduct: You can claim a tax deduction for the cost of purchasing and laundering occupation-specific clothing, protective clothing, and uniforms. This includes items like branded gym wear, shoes, and any protective gear required for your job.

How to Claim: Keep receipts for clothing purchases and laundry expenses. If you use a laundromat or dry-cleaning service, keep those receipts as well. If you wash your clothing at home, you can claim a reasonable estimate based on the number of washes.

Example: Sasha, a personal trainer, buys branded gym wear with her company logo. She also washes these clothes three times a week at home. She keeps the receipts for the gym wear and calculates her home laundry expenses based on the ATO’s reasonable amount per load.

Fitness Equipment

What You Can Deduct: You can claim a deduction for the depreciation of fitness equipment used for work, such as weights, resistance bands, and exercise machines.

How to Claim: Keep receipts for all equipment purchases. Use the ATO’s depreciation rules to calculate the annual tax deduction for each piece of equipment.  The Gotax Online system has rates built in to make youir calculations easy.

Example: Paul, a personal trainer, buys a set of weights for $500. He uses the Gotax inbuilt depreciation rules to claim a portion of the cost each year over the useful life of the weights.

Educational Courses and Certifications

What You Can Deduct: Expenses for courses, seminars, and certifications directly related to maintaining or improving your skills as a personal trainer are tax deductible.

How to Claim: Keep receipts and any course materials that show the cost and relevance of the course to your work.

Example: Karen, a personal trainer, enrolls in a course to become a certified nutritionist. She keeps the receipt for the course fee and claims it as a deduction.  Karen is also entitled to claim any travel to the courses.

Travel Expenses

What You Can Deduct: Travel expenses incurred for work purposes, such as traveling between different gyms or to client sessions, are tax deductible. This includes car expenses, public transport, and parking fees.  Use the Gotax Deduction Grabber App to stay on top of these tax deductions.

How to Claim: Keep a logbook for car expenses or use the cents per kilometer method. Keep receipts for public transport and parking.

Example: Andrew, a personal trainer, travels between three different gyms each week. He keeps a logbook of his car mileage and claims the travel expenses using the cents per kilometre method.

Insurance and Membership Fees

What You Can Deduct: Professional indemnity insurance, liability insurance, and membership fees for professional associations are tax deductible.

How to Claim: Keep receipts and policy documents for insurance and membership fees.

Example: Leanne, a personal trainer, pays $300 annually for professional indemnity insurance and $150 for a membership to a fitness association. She keeps the receipts and claims these as tax deductions.

2. Common Incorrect Claims

Everyday Clothing

Misconception: Many personal trainers mistakenly believe they can claim everyday clothing worn to work, such as regular gym wear without logos or branding.

Reality: Only occupation-specific clothing, protective clothing, and uniforms are tax deductible. Everyday gym wear is considered personal and not tax deductible.

Personal Training Sessions

Misconception: Some trainers think they can claim the cost of personal training sessions they take for their own fitness.

Reality: Personal fitness expenses are not tax deductible as they are considered private in nature.

Home Gym Equipment for Personal Use

Misconception: Trainers may assume they can claim home gym equipment used for personal workouts.

Reality: Only equipment used for work purposes is tax deductible. Personal use equipment is not tax deductible.

3. Learning Points

• Substantiate Your Claims: Always keep detailed records and receipts for all expenses you intend to claim. This includes logbooks for travel, receipts for purchases, and documentation for courses and memberships. Use the Deduction Grabber App (Scan the QR code below) to stay on top of these Tax Deductions.
• Understand Deductible vs. Non-Deductible: Be clear about what expenses are considered work-related and deductible versus personal and non-deductible.
• Consult a Tax Professional: If in doubt, consult with a Gotax tax professional to ensure you are maximising your deductions while staying compliant with the tax laws.

4. Track your Tax Expenses

Gotax has a great little App called Deduction Grabber.  You can record all your yearly tax expenses throughout the year in this one handy little App.  Record expenses, track your car costs and all the logs your ever going to need.. Scan the QR Code now:

5.  Looking to get an ABN and start a Business?

You'll need a simple, and I mean simple bookkeeping system to get you up and going.  Take a look at eCashbooks and the Personal Trainer Cashbook

Time to get your Tax done.  We wrote the article, we know how and what you can claim as a tax deduction.  Go online and get started with the easiest Online Tax Preparation system in the country.  www.gotax.com.au

Personal trainers can effectively manage their tax deductions, ensuring they claim all allowable expenses while avoiding common mistakes. This will help you keep more of your hard-earned money and stay on the right side of the taxman.