More than four out of 10 fail to claim all of their business expenses, says one digital accounting services provider.
Sole traders ‘miss out on $3.5bn in tax deductions’
Four out of 10 sole traders forfeit unclaimed business expenses worth a total of $3.5 billion a year, according to one digital accounting services provider.
Research by Hnry estimates 42 per cent of self-employed workers miss out by failing to log all their tax deductions despite spending an average of eight hours a week on financial administration.
Hnry Australia managing director Karan Anand said too many of the 1.5 million sole traders were missing a trick.
“Claiming expenses can make a huge difference to a business, especially when we’re dealing with inflation and a cost of living crisis,” said Mr Anand.
He said the company had launched a digital debit card, the Hnry Visa Business Debit Card, which automatically lodged every business expense and immediately offset tax.
The card was available through the Hnry app and could be used anywhere that accepts Visa, either in store or online.
Hnry said the card was developed in response to customer feedback and helped eliminate mountains of receipts.
“The Hnry Visa Business Debit Card does it all for business owners, allowing people who work for themselves to never miss a tax deduction again and focus on what matters – doing their jobs,” said Mr Anand.
“This new product is the latest step in our commitment to driving financial empowerment for the 1.5 million sole traders in Australia.”
The card operated similarly to a business account, tracking spending and recording it in the user’s Hnry account.
“It allows customers to top up their cards and receive a notification to upload the receipt immediately after any purchase, to offset the tax straight away, storing the information for the long term, eliminating the need for the mountain of receipts,” the company said.
The card was backed by card issuer the Novatti Group and chief executive Mark Healy said the two companies had a shared goal.
“We are excited to showcase our expertise in card issuing through the Hnry Visa Business Debit Card, and support Hnry on its ambition to make earning an independent income simpler for all,” said Mr Healy.
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