At tax time businesses look for ways to save money and maximise deductions.
If you start planning now for the 2015/16 tax year you will be way ahead this time next year.
There are hundreds of tax deductions and credits that you may be able to claim to get your maximum refund. It all depends on what you do, how you work and how good you are at keeping records.
It’s simple. Keep every receipt
Find a way to manage all those loose papers in your office, in your wallet and in your car or house. They can add up to a lot of deductions. Another easy and often overlooked deduction is the cash transactions that many businesses make.
Please note bank statements are only accepted by the ATO in limited situations – keep receipts!
Pay particular attention to certain area such as:
• Depreciation expenses & capital purchases. Again plan it out properly to get the best outcome.
• Capital Expenditure – Purchasing new equipment can create a big tax deduction for your business. Take advantage of Budget 2015 carefully.
• Start-up costs – a bonus from our Government this tax year
• Bad debts. Use them as a recoverable tax deduction
• Cash flow and Timing of income and deductions. Crucial to your tax obligation
• Carrying stock into the next financial year to reduce assets accountable to trading
• Interest expenses – a tax deduction for some businesses
“However, always remember that any business decision you make should be made for commercial reasons, and never simply for the sake of a tax benefit”. Thomas Murmylo, Principal, Business Tax & Money House.
Start now from August 2015.
The sooner the better. It will make life easier for you. And remember professional fees are tax deductible! If you need some help to find the deductions you’ve earned and greatly reduce your overall tax burden just ask. Remember that tax rules change frequently – often from year to year – so be sure to check with a trusted tax agent from Business Tax & Money House.