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Sunday, May 19, 2024

‘Looking forward’ to another tax year

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By Gavin Waring (CEO Your Business Angels)

THE TAX year has ended – if you didn’t plan, you will probably be paying more tax than you need to.

If you are on a salary, keep every receipt you think might relate to you carrying out your work.

You can’t make a claim without a receipt or, if challenged on a claim, you can’t prove it.

You don’t need to keep a detailed filing system, just a plastic bag in the glove box in the car, where you put all your annual receipts will do.

Also, make notes of when you work from your home office, use your tools, and keep records of travelling for work.

With these receipts, it’s easy for us or other professionals to sort out what you can claim and help you get the best tax return.

For those in business, it’s a lot more complex

I have been amazed at how many businesses are in a sole trader structure, in the Whitsundays.

Businesses here are going out of their way to save the national economy by paying too much tax.

Small businesses don’t need complex structures but need to understand how a company structure works. This can help a business owner save money at a lower tax rate.

Business owners should get across the accounts to know what is happening financially in their business.

All that hard work can mean a great business, but a lack of time to understand what happens in their finances can mean much higher tax bills.

Make sure you run your business bank accounts separate from your personal bank account, so your business claims are not mixed up with your personal spending.

Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset. Instant asset write-off can be used if the cost is less than the relevant threshold.

Remember, there may be a tax write-off, but you must still pay for it.

I am happy to chat to anyone who wants to know about saving money on tax and getting their business organised to minimise tax.

No matter how humble your business is, a significant difference can be made.

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