Six end of financial year tax tips for your business
The end of financial year is just around the corner, so we’ve got six tips to help you get your finances in order, before 30 June 2020.
Take advantage of the instant asset tax write-off
The federal Treasurer has extended the $150,000 instant asset tax write-off scheme by six months to help businesses invest in equipment and improve cash flow. Claims can be made on any number of new and used assets, so long as the individual asset value is less than $150,000. Read more on the instant asset write off and the deductions you and your business can claim HERE.
Be aware of tax changes that might impact your business
Touch base with your financial adviser and ensure you are across any changes that you may need to consider for the end of financial year. Reaching out will allow you to prepare and capitalise on any changes that may positively impact your business and mitigate the impact of negative change before you submit your tax return.
Pay your superannuation on time
To ensure your superannuation can be included in your tax deductions, you need to ensure all your contributions are paid by 30 June 2020, if you miss this date you will need to wait until the following year to claim them in your tax return.
Prepare your paperwork
At the end of the financial year you are often left scrambling for your important paperwork to complete your tax return. Start preparing now and look at where you can streamline your processes for the next coming financial year. Review how you store and file documents such as receipts for sales and purchases and superannuation contributions. A cloud accounting software, such as Xero or MYOB can help with this.
Working from home during COVID-19
For many of us, our working conditions changes during COVID-19. If you work from home you may be able to claim a deduction for the expenses in running your office, this can include things like electricity, cleaning and home office equipment. There are three ways to calculate your home office expenses, with the ‘shortcut method’ increasing from 30 cents in the dollar to 80 cents, for the period from 1 March to 30 June 2020. Find out more on your working from home deductions and the best method for you HERE.
Don’t miss the important dates
The ATO have all of the dates you need to be aware of HERE. Mark them in your calendar and set yourself up for success for the next financial year.