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MYOB & Reckon / Quickbooks – Chiropractor – Claimable as tax deductible business expenses?
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Published on Thursday, 19 November 2015 12:13
A client was seeing a chiropractor (due to a work related back injury) and wondered if the cost were claimable as tax deductible business expenses? He was paying the gap expense's (private health insurance is paying the rest) through the business and he is allocating it to "sundry exp's'', he is not claiming through work cover.. He didn't feel it's right to put as 'sundry exp's' ?? what should he change it to.. 'other employee exp's'??
Answer – There are 2 parts to the query – tax deductibility and use of Sundry and Miscellaneous accounts
1. Tax Deductibility - Whether it’s claimable should be directed to your tax agent, as your affairs are known by him/her
It is questionable whether Injury expenses are claimable as they may not come under what the ATO says - “You can claim tax deductions for most costs you incur in running your business but there are exceptions. For example, you cannot claim deductions for private or domestic expenses. Entertainment, fines and some other expenses are also specifically excluded. SEE HERE
Ask your tax agent, or call the ATO, or we can recommend our CPA or BAS agent to you.
2. Sundry and Miscellaneous Accounts - It is better to avoid Sundry and Miscellaneous accounts – it makes more work for the bookkeeper and accountant at year end – as they need to see what the transactions are.
Best to use a good account name so the tax agent can decide what is claimable or not and then they don’t need to sort out all the different transactions mixed together in one account.
So I would create another account under 9=xxxx and call it “Work Injury Expenses” – they may be claimable in the personal return
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