Insights on Tax
Top Tax Time Tips
Don't fear end of financial year and tax time. Just plan and be prepared.
And take note of our Top Tax Time Tips.
Whether you're in business or a wage earner, you want to get the best tax position each year that you can. And that means planning ahead, having a discussion with your accountant and taking action. No point in the first few days of July thinking "maybe I should have .....", because its too late.
So heres 9 of Cliftons Top Tax Time Tips.
1. Get your superannuation deductions paid. Whether you're claiming a deduction or want to access the co-contribution, your fund needs to receive the money before 30 June. This goes for your own contributions and that of employees.
2. Consider expenses you'd normally pay in July and if you cash position allows, pay them early. This can include memberships, donations, interest, subscriptions. Using a credit card can help if cash is tight, especially with interest free days.
3. Think about whether to invoice for and receive income in June or July, depending on what next year may look like. Yes it means some crystal ball gazing, but it can all save you money now.
4. Make those necessary purchases which can be immediately written off. This includes low-cost equipment and tools. BUT don't just spend money for the sake of a tax deduction; that makes no sense.
5. Make any minimum repayments on loans made to you from your company, so as to not fall foul of specific tax laws. And it gets you the interest deduction, if the loan was for an income earning activity.
6. Lodge on time and pay on time. The ATO is getting tougher on unpaid tax, and imposing quite harsh penalties for late lodgement. Penalties are at least $170 per month for lodging late and interest is charged at north of 10%.
7. Write off bad debts before 30 June by doing a review of who owes you money and clean up the ones that you cant collect. A bit of focus on debtors, and some phone calls, might bring in some long overdue payments. Bonus!
8. Do a stock-take of your inventory and see what you've really got and what its really worth. Write off and revalue is the name of the game. Also helps for being adequately insured.
9. Use expert advice, not guesswork by talking to a qualified specialist accountant. Don't rely on pub chatter.
Come speak with the professionals - and contact Cliftons