In the current times, there seems to be a multitude of bloggers, vloggers and more pushing this brand or the other. And due to how common social media influencing has become, it is easy for many to believe that it is merely a hobby rather than a job. Yet, as long as you are being paid for your services, you are deemed to be a working professional, which obligates you to pay taxes. But with the newness of influencer marketing, it can be challenging to navigate Australia's tax laws without professional help. Here is where a tax accountant comes in. If you have jumped on the influencer bandwagon, here are a few compelling reasons why you need to hire a tax accountant for your finances.
A tax accountant will help you distinguish your business expenses
If you have recently ventured into working as an influencer, you likely are unfamiliar with what you can claim as business expenses. This ambiguity is not ideal for your income since you qualify for certain deductions and failure to claim them can translate into potential losses for your business. The best person to help you separate these personal and business expenses is a tax accountant. For example, if you carry out your business from home, as most newbie influencers do, you can claim a few standard expenses such as part of your rent, internet connection, phone bill and so on.
However, you should know that there is a cap on the total amount that you can claim. As a bonus tip, you should consider separating your personal money from your business' income. Having two different bank accounts for these expenses makes it easier for your tax accountant to establish your earnings and business expenses, which gives them insight as to what deductions you qualify for.
A tax accountant will inform you of what PR gifts you should declare
A major reason why more and more people are venturing into influencer marketing is the potential to receive freebies from a range of companies. Granted, these gifts are given away as part of the public relations of the different brands with the hopes that the influencers will highlight their products on their social media channels. However, simply because it was a gift does not mean that you cannot be taxed for it.
A tax accountant is invaluable for determining what PR packages can be deemed as minor presents and those that would attract the attention of the Australian Taxation Office. Take note, it is also up to you to prove that the gifts you have received are indeed from brands you are collaborating with and not personal items that you are trying to evade being taxed for. Hence, to be on the safe side, it is always best to hire a tax accountant to handle these matters for you.
Share20 January 2021
Hello! Welcome to my tax blog. My name is Phillip, I am a businessman who lives in Sydney, Australia. Last year, I realised that my tax bill seemed very high. My friend suggested that I contact a tax service who would be able to offer help and assistance in rearranging my tax liabilities. I was a little unsure, but I took my friend's advice. The advisor was great. He looked over all of my financial data and recommended some minor changes I could make which could drastically reduce the amount of tax I would owe. I hope you like this blog and find it useful.
