One of the most common expenses incurred by family day care carers is for telephone and internet. Where your phone and internet are used both for business and private purposes it is important for you to separate your business and private percentage.
For telephone calls made through your home phone and mobile you need to maintain a telephone diary for a period of a typical month over the financial year. In this diary you would record all of your incoming and outgoing business and private calls. From the recorded amounts you work out a percentage of business and private calls. The percentage you work out can be applied to the remainder of your telephone bills for the rest of the financial year where your usage does not vary by more than 10%.
For internet claims you also need to keep a diary of a typical month over the financial year. You record the total hours the internet is used for business and private purposes to work out a business percentage. This percentage can then be applied to the remaining internet bills for the year where your usage does not vary by more than 10%.
More information on claiming telephone and internet expenses can be found on the ATO website . Further information, as well as diaries and calculation sheets, are provided as part of the Initial Consultation package. To book an Initial Consultation click here.