Tax Return:: Tax Deductions for Chefs

Hello, this is your tax and super specialist, P&C Tax Professionals.

With their busy schedules in place, a lot of the chefs often skip or simply forget about some of the tax deductions which they may be eligible to claim on their tax return. For this reason, we have prepared a list of some of the commonly claimed tax deductions by chefs. Without further delay, let’s get right into it.

<Tools & Equipment>

Cooking equipment are essential for chefs when it comes to making their dishes. Some of the common tools and equipment that are tax deductible for chefs include:

> Knives and sharpeners

> Graters and slicers

> Cooking utensils (e.g., wooden spoons, spatulas, whisks, tongs, peelers, etc.)

> Measuring cups and spoons

> Cutting board

> Saucepans, frying pans and pots

> Steamers

> Glassware and plating dishes

> Baking trays and tins

However, please keep in mind that you can only claim a deduction for the tools and equipment you use for cooking that are not reimbursed by your employer and which you have evidence of your purchase. On top of this, the item you are claiming must be an essential piece of equipment to perform your duties. If it is simply an item that you would like to have for work, you cannot include the expense of this as part of your tax deductions.

<Work-related Clothing>

Clothing that are specifically related to your occupation and the cost of cleaning your work clothes are indeed tax deductible. Some examples include:

> Compulsory uniforms with the logo of the restaurant or café

> Black or white chef’s jacket

> Checkered chef’s pants

> Chef’s hat

Protective clothing:

> Aprons

> Non slip/steel cap shoes

> Hair nets (to prevent hair falling into the dishes)

> Gloves

> Goggles

<Self-Education Expenses>

In order for chefs to upskill their knowledge and techniques as chefs, they would most likely have to take a work-related course that are often tax deductible.

If you do happen to take a training course, the course must have a direct relation to your current position as a chef. For example, if you specialise in making desserts at work, you can claim the self-education expenses for a baking and patisserie course but not for a course in butchery.

Some examples of the self-education expenses consist of:

> Course/tuition fees

> Accommodation

> Travel expenses (if you are required to travel as part of your course)

> Equipment costs

> Computer and mobile phone costs

> Stationery and textbooks

> Academic journals

> Student services and amenities fees

And the list goes on.

<Key Points>

Usually there are 4 basic rules when it comes to claiming your work-related expenses.

1. You must be the one who have spent the money and you were not reimbursed for the expense by your employer or anyone else.

2. It must have a direct relation to earning your income.

3. You must be able to provide evidence of the purchase (normally in the form of a physical or digital receipt)

4. You must only claim for the work-related portion of your expense if the expense is also used for personal purposes.

I hope this blog post will serve as a convenient checklist for chefs as you prepare for your upcoming tax return. Any further questions or enquiries can be directed to our Facebook Page (P&C Tax Professionals – Australia) or to our email address at pnctax@naver.com.

Thank you and bye for now!