Whether you use the services of a small business tax accountant or handle the taxes for your company yourself, these top tax tips can help you.
The Right Business Structure
Becoming incorporated or trading through a trust can protect your company’s assets and has several tax benefits. It’s important to understand that your company may operate differently in the future and to plan for that.
The $20,000 Instant Asset Tax Break
Don’t forget to take advantage of this useful tax break which expires on June 30 of 2018 and can help your business if you own vehicles, computers or plant equipment costing under $20,000 each.
Keep Accurate Records
Don’t wait until tax time to get together all that paperwork you need – keeping complete and accurate records all year can make your life a lot easier.
Keep Your Tax Records
These should be kept for at least five years back, as well as invoices for claimed expenses more than $82.50, and written evidence for any BAS claims.
Pay Your GST On Time
You will need to contact the ATO at 13 28 61 if you need an extension to pay your GST debt, although because of the interest incurred, it definitely pays to pay it on time if possible.
Your Home can Cut Your Taxes
Claiming part of your home as a home office area is something you should do if applicable; don’t forget to use a specialist depreciation schedule for taxes to figure out the percentage used of council and water rates, and building insurance. Fixtures and furnishings can also be declared, as can any maintenance or required repairs of your designated home office area.
Have Your Cake and Eat It
Your home becomes a GST asset once it becomes your place of business, allowing you to pay very little in tax at the end of the year while saving on yearly deductions. The tax system can be used to help you to extend or upgrade your home.
Tax time can be stressful, and the above tips can help to make it less so and can help you and your small business take advantage of as many tax breaks as possible.