Small business tax ready
We all want to legally reduce tax as much as we can so if you are a Small Business Entity here is a quick list of my top 10 to do before 30 June. However, don’t spend money just to save tax, make sure it is an expense that needs to be outlaid.
- Ensure staff superannuation is paid before 30 June 2021 if you want the claim in 2021 rather than 2022.
- Prepay any expenses such as rent, advertising, subscriptions and so forth up to 12 months only – it cannot exceed the next financial year.
- Anything need to be replenished? Tools, stationery, uniform?
- Staff bonuses?
- Make sure you have logbooks for vehicles. Why settle for the kilometres method when a logbook could give a better claim.
- Use the Temporary Full Expensing measure. This is where you can buy certain assets with no upper limit but must be ready for use by 30 June. Be careful with cars, they are still subject to the cap of $59,136 for 2020/2021.
- Business owners – not paid superannuation for yourself for a few years? You can contribute any unused concessional contributions since 1.7.2018. So for 2020/2021 there is up to $75,000 that you could contribute and use it as a tax deduction.
- Do you have a factory, shop or office but work from home as well? – don’t forget to claim home office running for home use.
- Are their any bad debts (sales invoices) to write off before 30 June?
- If on accrual accounting defer income invoices to 1 July 2021.
Always talk to your Accountant if you are not sure as some of these measures are general so need their key input. Leanne from LA Accountants 07 3155 6596