For some small business owners, the end of financial year can be a real stress. With bookkeeping, tax returns and planning for the new financial year ahead turning even the most stoic business person into a hot mess. For others, however, it’s a time of unrivalled opportunity. Where tax breaks and changes invite a totally new and exciting business outlook.
Whatever camp you’re in, we’ll be discussing a few things you ought to know to help make this 2018 EOFY, the best of your life.
Use a registered tax agent
In a time when you can do everything online yourself, it still pays to sit down and ‘do your tax’ with a real tax agent. Their advice and knowledge can be invaluable to your business, and can make the whole process as simple as possible. Ensure your agent is registered with the Tax Practitioners Board (TPB), as you’ll take a big risk when using an unregistered tax or Business Activity Statement agent. You can check their registration status here.
Keep up to date
Keeping regular tabs on tax changes and adjustments may not seem like the most riveting of pastimes. However, when it comes to tax, the more you know the more you benefit. Changes occur regularly, and whilst your registered Tax agent should be all over this for you, it’s worth keeping up to date yourself. For ease, subscribe to the ‘small business newsroom’ blog on the Australian Tax Office website. With constant updates and tips for tax time, it’s a resource that ever small business owner should utilize. Click here to read more.
Know your deductions
‘Deductions’. The sweetest word in the tax time dictionary closely behind ‘tax return’. As a small business owner, with a number of assets and ongoing business payments, you’re going to have deductions. Which is great news! However, how far you can push for them is completely up to you. So, before you head to the tax man, do your homework and find out exactly what tax deductions you can claim. Things like website set up, motor vehicle expenses, travel expenses and tools or computers are ripe for the picking.
Write-off those assets!
Good…no…great news; The write-off threshold of $20,000 has been extended to June 30 this year! This means if you bought an asset for your business in the past financial year, and it cost less than $20,000, you can deduct the business portion on your tax return – immediately. Things like equipment, vehicles, tools, computers and phones can all be claimed as part of the scheme.
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