Are you Running Out of Time?
Updated: May 5
Even though the end of the financial year is only the 30th June there is a mountain of things that you can do to prepare for a good tax return.
IF you leave it all until the end, you may not have enough time to get it right.
MOTOR VEHICLE CLAIMS
To claim motor vehicle expenses for costs that you have incurred (as the cent per km method is capped at $5000 km's) you need a log book that has been run for at least 12 weeks. That means that you really need to get it started no later than the 6th of April. Without a log book you could be missing out on motor vehicle deductions that can save you a lot of tax.
TOP TIP : You Must record your odometer reading on the 30th June and the 1st of July every year
Leaving receipts until the end of the year can be a costly mistake. Have you ever found a receipt that has faded so badly that you cannot read it anymore? Well these receipts are not eligible as substantiation for a tax deduction.
TOP TIP : Take a photo of every tax deductible receipt at the time of purchase and save it to your Tax Year folder
PLAN YOUR EXPENSES
Remember that in order to get a tax deduction you must actually spend the money & the expense must relate directly to your ability to earn your income. Planning WHEN to make certain purchases can affect when you get the tax deduction. Think ahead and buy what you need before the 30th June.
FOR THE SELF EMPLOYED
Tax planning is imperative! If you don't think ahead, and work with your accountant you could get a nasty surprise at the end of the year. Whilst your bank balance may look healthy, remember that Tax must be paid on your income. If you are not paying Pay-as-you-go tax or putting some money aside for income tax, you could be horribly surprised. Speak with your accountant about Pay-as-you-go tax.
TOP TIP : At MQ Accountants we can provide a snap shot of your tax position each Quarter to give you peace of mind.
ARE YOU A COMPANY, TRUST, SOLE TRADER OR PARTNERSHIP?
Discuss your current entity structure with your accountant. Is it right for you? There are many concessions and rules relating to different sorts of entity structures and some may suit you better than others. PLAN Ahead, so that you can be ready to change this over for the 1st July if you need to.
Call us today to make an appointment 0409 715 577
This articles intention is to inform rather than advise and is based on legislation at the time. Each Taxpayer’s circumstances vary so we strongly recommend that you discuss this information with your Tax Agent, Accountant or Bas Agent before implementation. If you take, or do not take action as a result of reading this article, we accept no responsibility for any financial loss incurred.