Running a business is hard work, and shelling out money on repairs and maintenance on top of all your expenses can be a major headache. So the question is – can you claim lock repairs for your business? Luckily, there are plenty of costs that can be claimed back on tax.
Do you rent out an office space? Or work from home?
Are you in need of lock repairs or building maintenance?
Depending on your situation, and the services you require, you may be eligible for a tax deduction on these expenses. Plenty of services, maintenance, and costs can be claimed for your business, whether that be for your office space, home, rental property or company vehicle.
If you work from home…
There are a few costs, such as rent, utility bills, repairs, land taxes and insurance premiums, that may be partially or wholly covered for sole traders and partnership businesses, if your space passes the “Interest Deductibility Test”.
The “Interest Deductibility Test” relates to whether or not the space you have set aside in your home has the character of a place of business. This could mean you have a sign identifying your business outside your home, you regularly attend to clients in the space, and/or the space is used almost exclusively for carrying on your business.
A good example of this would be a hairdresser’s home salon; they would need a designated space set up with a basin, mirrors, chairs, hair products, and so on, that would not be suitable for domestic purposes. So, for instance, a hairdresser could not just use the bathroom of their residence to carry out business and still be able to pass the deductibility test. In essence, in order to be eligible for money back, you need to have a designated space set up specifically for the kind of work your business does, and the space must only be used for that work.
In some circumstances, you’re able to claim running costs, like heating, electricity, landline, internet, cleaning and repairs, even if your workspace does not have the character of a place of business. This means that if you work out of a study or office 5 days a week, calling and e-mailing clients, costs such as your internet and phone bills may be covered.
The amount you can claim generally amounts to the percentage of your property that your workspace takes up. For example, if you use a room that takes up 10% of the area of your home, you can claim that percentage of your rent, insurance costs, mortgage interest etc. under your business.
So, if you need locksmith services in your office or workspace, you can claim the cost of repairs and maintenance under your business. Keep in mind, however, that if you’re living in a rental property, it may be your landlord’s responsibility to handle your repairs.
If you rent an office space…
Depending on the situation, the property manager of the building might handle the maintenance and repairs for your office. In other cases, you may have to sort things out yourself.
Regardless, you can claim expenses for allowable maintenance, repairs, or replacement. This includes painting, repairing electrical appliances, mending leaks, plumbing, and locksmith services.
However, you can’t claim capital expenses; meaning you can fix things and replace minor parts, but you can’t completely rebuild. For example, you can claim the cost of replacing a broken lock, but not the cost of replacing all locks on the building with digital locks.
For all your locksmithing needs, call Perth’s best mobile locksmith at Hashtag Locksmiths.