You can’t go to work smelling like a high-school change room – and you can’t go to work looking like you’ve been marooned at sea for months, with nothing to keep company but seawater, the sun, and a volleyball named Wilson.
You need to keep yourself presentable for work, no matter what industry you’re in.
Does that mean you can claim all your personal grooming expenses as a tax deduction? You can’t go to work looking like Hairy Maclary.
Unfortunately for most people, you can’t. But read on, as you might not be “most people”.
There are exceptions that will allow you to claim some of these personal grooming expenses as a tax deduction. In this article, we will walk you through everything you need to know if you are trying to claim personal grooming tax deductions.
What qualifies as a tax deduction?
There are three main requirements that qualify as an expense for tax deductions, which is calculated against your income:
- You must have spent the money and not have been reimbursed
- It must be related to your job
- You must have a record to prove it
What constitutes an expense as “related” to your job you might ask? It’s always helpful to ask a professional what they think.
However, here’s a definition of what makes an expense related to your job:
What makes an expense related to your work?
For an expense to be directly related to your job, it has to be directly related to your ability to generate income. The best way for us to explain this is with an example:
If you are a private truck driver, the purchase of your truck and petrol will be expenses directly relating to your income because it would be impossible to do the job without those things.
However, if you work in an office and your boss likes you to smell nice, the purchase of cologne will not be an expense directly relating to your income, because you can still do your job without the cologne.
See the difference?
If you’re unsure, One Click Life’s easy-to-use platform will help you qualify your deductions – along with some help from our qualified tax team.
What is your income for tax purposes?
Your income for tax purposes is the money you earn that will be taxed by the ATO, so don’t forget to report everything. If you have an expense that affects any of these forms of income, you may be able to claim it as a tax deduction.
Your taxable income includes:
- PAYG summaries
- Pensions and government allowances
- Interest earned (banks etc)
- Rental property income
- Business income
- Other income earned (capital gains etc)
When you submit a tax return with OCL, we get one of our Number’s Geeks to have a look over it before it is sent to the ATO. If we think there’s a mistake or anything the ATO may find suspicious, we’ll let you know and iron out the creases together.
Who can claim personal grooming as a tax deduction?
As mentioned above, not everyone can claim personal grooming as a tax deduction – but there are a few. So if you’re wondering “can I write off getting my hair done” or “what personal expenses can I write off”, keep reading below.
Cabin crew have been allowed by the ATO to claim skin moisturisers and hair conditioners because the lack of humidity in the air at altitude can deteriorate skin with continued exposure.
If you are a beautician, you can buy products that you will use for your clients and claim them as an expense. You may sample these products, but if they are intended for personal use they are not tax deductible.
What deductions can hairdressers claim? Well personal care like combs, brushes and hair products are obviously essential to earning income, so all those items are deductible.
Working in the performing arts
If you work in performing arts, maintaining a look for your role is tax deductible because if you didn’t it would directly affect your income.
Adult industry workers
Adult industry workers have to maintain good body hygiene otherwise it becomes unsafe for both themselves and their clients. Personal grooming for Only Fans tax deductions and the adult industry is tricky, let us help you by booking a meeting with one of our tax professionals.
If your personal image/brand is how you generate income, then I am sure you will be able to claim personal grooming expenses.
Do you need receipts to claim personal grooming expenses?
Wondering “what can I claim on tax without receipts in 2021”? What can I claim on tax without receipts is a question we get asked time and time again, so if you need more information on receipts with your tax, click here.
However, in short, yes you will need receipts to claim personal grooming expenses. Keeping your receipts will prevent:
- Getting in trouble with the ATO and risking potentially large fines
- Getting confused with what you can claim with the ATO
Now remember, for personal grooming to be a tax deduction, it has to be essential for you to generate income. Holding onto everything, including the receipts that aren’t relevant, will get very confusing. That’s why you should use the One Click Life platform so you can log and record everything in one easy-to-use place.
Washing my clothes is tax deductible – why isn’t personal care?
Laundry tax deductions exist so why doesn’t the same apply when washing and grooming myself? Well, work related clothing expenses, which includes uniform tax deductions and claiming laundry on tax can only be done with work compulsory clothing and usually has to have a company logo/name on it.
Not all clothing is applicable for laundry tax deduction.
In the same fashion, not all personal care and grooming is applicable for tax deduction. It has to be compulsory for your work.
If you’re wondering “how much laundry can I claim”, ask a professional.
Where can you get help trying to claim personal grooming deductions?
The more you deduct, the less tax you pay and the more money you can spend on yourself. The sure-fire way to do that is with a tax agent or accountant. You can also claim your tax agent/tax return fee back on tax, so why wouldn’t you use one to minimise your tax and maximise your money?
One Click Life offers online tax returns at your fingertips in an easy-to-use platform run by industry professionals.
Taxes, health insurance, and wills can be time-consuming and tedious. Our app allows you to be able to do this fuss-free, giving you a simple way to organise, track and manage all of your life admin in one place.
Let One Click Life take care of your tax return and life’s essential tasks, so you can spend more time doing the things you love.