09 Jun Tax Planning for 2020 – Are you prepared?
The end of the tax year will soon be upon us with 30 June just around the corner. This year more than ever it’s important to get your records and tax return correct because of the unusual business circumstances and JobKeeper payments.
Are you claiming all the tax deductions that you are entitled to?
Deductions may include:
- Operating expenses include accounting, administration, advertising and marketing, office premises, office running expenses, trading stock, legal fees, insurance and vehicle expenses.
- Employment expenses include salary and wages, fringe benefits, superannuation and training costs.
- Other operating expenses may include things specific to your business, for example point of sale systems, freight, professional membership fees, professional education, protective equipment, tools or specialised software.
- Capital expenses include machinery and equipment, vehicles, furniture and computers.
- Depreciation for these assets may also be deductible if the expense was not written off immediately.
- Repairs and maintenance to assets and business premises
Expenses must relate to the running of the business and providing the goods or services that your business offers.
Instant Asset Write Off
This year the instant asset write-off threshold has increased to $150,000 up from $30,000. The new threshold is in place until 30 June, so talk to us if you’d like advice about whether it’s a good time for your business to buy new assets and claim an immediate deduction.
COVID-19 Support and Cash Flow Boost
If you as an employer received a cash flow boost under the boosting cash flow for employers measure, the amount is tax free (non-assessable non-exempt income) and you are entitled to a deduction for the PAYG withholding paid.
If you have received JobKeeper payments, please note that this is assessable income of the business.
Maximise Your Business Deductions
We can check your business’s eligibility for concessions, offsets, incentives and rebates and make sure your business is calculating taxable income correctly, so you don’t pay more tax than you need to!
With so many businesses affected by COVID-19, it’s important to get the allowable tax deductions right for your business and get in early for your tax return. This way you get more time to plan for payment, or if you are due a refund you will get it quickly.