Here are a few tax tips for business as the financial year rolls on and it's time to get that tax work finalised. Keep in mind a few items that will help reduce your tax burden!
Maximise your depreciation claims. Remember that the small business immediate write off for assets under $20,000 assets is still available and has been extended to 30 June 2019. It is important to remember that this threshold is $22,000 including GST for a GST registered business and $20,000 including GST for an unregistered business. You should also review your depreciation schedule and ensure that all listed assets are still used in your business, if not, they should be written off, claiming any residual depreciation in the 2018 year.
It is essential that you regularly review your business structure to ensure that it still suits your business needs and that it still provides you with sufficient protection of your family assets and that you pay the least amount of tax possible.
As an unincorporated business, you may be eligible for the small business income tax offset which can provide up to $1,000 off your tax bill. The offset is currently 8% of your tax payable but this is set to increase to 16% by 2027.
It is also important to know what is on the ATO watchlist. This year home office , motor vehicle and laundry claims are under the microscope so it is vitally important to ensure you have records to support these claims.
Feel free to contact us if you have any questions at all.