Receipt requirements for ATO

[Joel]

Are there any requirements of details a receipt needs to have in order to claim it as an expense with the ATO? The property is owned in my name and I'm not registered for GST.

Tenant has got some repairs done as the property manager was quite slow in getting it sorted (another issue to be addressed). I have received a cash receipt which details:

1. Date
2. Received from
3. Amount
4. Short description of work
5. Signature of supplier

There is no ABN or name/address details of the repairer. Is this receipt still valid and satisfactory proof of an expense to the ATO?

I found an ATO website which lists requirements for a Tax Invoice, not sure if a Tax Invoice and Cash Receipt is equivalent.

Thanks

 

[Joel]

I think I found my answer on the ATOs website. It is the same for any other expenses.

What is written evidence

 

[womble66]

Did you validate with the supplier that its a legitimate receipt and the supplier is a ABN holder (business)?

If yes then I wouldn't have an issue using it for tax purposes as long as it complies with the written evidence guidelines from the ATO.

Only question would be if its a "bodgy" receipt from the tenant, not a real supplier, on a cash receipt book they got from the local Officeworks because they done the work/repair and looking to claim their labour etc.

 

[datto]

I think the income tax act ( section 263 ?) states that a taxpayer must keep records that explain their income and expenditure in the English language.

The more information you have on receipt the better. Otherwise the ATO may need more convincing.

 

[Joel]

Thanks for the replies. I do not have the suppliers ABN but have found that an ABN is not compulsory. However I am not sure about the implications as an individual because if I was a business, I need to withhold tax at the top marginal tax rate for suppliers without an ABN. Link

I do have photos before repair and after repair, so I'm sure work was done. Was it done by the tenants best buddy for a quick profit, that I don't know.

At the very least, it seems I require the suppliers name rather than just a signature.

I don't think I should be too concerned from the ATO perspective of the tenant bodgy-ing a receipt to charge for their labour as I never gave them permission to undertake the repair. My decision at the moment is whether I reimburse them the cost they say they have incurred.

 

[datto]

If the repairs were done at a reasonable price I'd be inclined to reimburse the tenant. I usually get tenant to bypass agent and contact me direct as I do most repairs myself. This saves alot of hassles.

 

[Joel]

If the repairs were done at a reasonable price I'd be inclined to reimburse the tenant. I usually get tenant to bypass agent and contact me direct as I do most repairs myself. This saves alot of hassles.

I'm not sure if it's reasonable as I have limited experience with trades in Perth. How much do you think it would cost to replace a wooden post of a gate and then rebolt the hinge. I think only materials was the wooden post as bolts and hinge did not need to be replaced.

I'm not that skilled to do my own repairs so I was hoping the Property Manager would deal with these maintenance issues.

 

[datto]

Joel, allow post costs $50, cement $10 and $100 labour. I think this is a fair guide. But without looking at the job the amount of labour involved would be hard to tell.

 

[BMan]

i would be asking for a valid tax invoice before reimbursement
if they cant supply it then withhold payment until you can sort out if its claimable, you can always pay them later but you cant get it back later
the question id be asking myself is what sort of business done the job? if they cant supply even there business name on the invoice
if you can look at the job and see it looks done well buy your unable to claim with that receipt then you could choose to reimburse them the amount less what you could of claimed (tax rate)

 

[Joel]

Thanks all for your sound advice.

datto, realised I asked an extremely vague question but it is a little less than your estimate as no concrete required as the post is attached to a carport post. Guess the ~$100 bill I got is roughly right.

From the reply, my concern on lack of suppliers name is not OTT. I've requested the supplier name, and then I'll be happy to reimburse as the job looks decent. There isn't missed drilled holes etc and it does look sturdy (bolts all fully screwed in etc unless they have been creative with the photos).

JL