5 Top Tax Deductions for Sole Trader and Freelance Hairdressers

Tax time can often be stressful and expensive and it’s really important to have solid tax advice. Lowering your taxable income through tax deductions is  legal and an important way to lower your taxable income.  Here are the five top tax deductions that freelance hairdressers can claim to reduce their tax.

1. Home office expenses: If you run your hairdressing business from home, you may be able to claim a portion of your home office expenses, such as electricity, gas, internet, and phone bills. Keep in mind that you can only claim the portion of expenses that are directly related to running your business.
2. Education and training: If you attend courses, seminars, or workshops that are directly related to your hairdressing business, you can claim the cost as a tax deduction. This includes any fees you pay as well as any travel and accommodation expenses.
3. Protective clothing and equipment: If you are required to wear and use specific clothing or equipment for your hairdressing business, such as aprons, hairdresser’s smocks, and hair cutting scissors, you may be able to claim the cost of these items as a tax deduction.
4. Advertising and promotion: Any expenses incurred in advertising and promoting your business, such as brochures, business cards, and online advertising, are tax deductible.
5. Self-education expenses: If you undertake self-education in relation to your current income-producing activities, you may be able to claim the related expenses as a deduction. This includes courses and seminars that improve your skills and knowledge in the hairdressing field.
6. Petrol: If you are a mobile hairdresser, you can likely claim your vehicular costs associated with visiting your customers. This could include petrol (or electricity if you have an electric car), depreciation on your car, interest payments on your vehicle as well as parking that you pay when visiting your customers.

Please keep in mind, this is not a comprehensive or legal advice. It is strongly recommended consulting with a tax professional or visiting the Australian Taxation Office (ATO) website for more information on the deductions you can claim as a sole trader hairdresser and for your specific case. The ATO website offers a lot of resources and tools to help small business owners understand their tax obligations and claim deductions.

Please also consult with professional accountant before making any important tax-related decision.