Find out how to can get ahead this tax time, before the 30 June 2021 deadline. We’ve got you covered on covid payments, claims, purchases, super and offsets.
Below are six tax tips to help you reduce stress and save time this tax season.
1. COVID-19 government payments.
Be sure this tax time to check here which are considered assessable income if your business received government grants or payments to support you during the bushfires or COVID-19. For example, if you received cash flow boost payments, these are considered non-assessable, non-exempt income. However, if you made JobKeeper payments to employees, these need to be reported.
TIP: Talk to your accountant for advice.
2. Working from home during COVID-19
If you worked from home, you may be able to claim a deduction for the expenses of running your office. Our working conditions for many of us, changed during COVID-19. Tracking these expenses can be challenging. But you can use a temporary shortcut method to calculate these expenses with minimal record-keeping required. The shortcut method initially applied from 1 March to 30 June 2020, but can now be applied up until 30 June 2021. Expenses could include things like cleaning supplies, electricity, and home office equipment.
3. Instant asset tax write-off claims
If you purchased any assets such as computers, laptops, tablets, office furniture or equipment, motor vehicles or other tools, for your business this year, you may be able to claim the instant asset tax write-off.
There is limit on the cost of items you can buy and write-off under the instant asset scheme is $1,000 for purchases made after 31 December 2020. However, if you purchased an asset, say for example, a laptop, before 31 December 2020, and intend to use it before 30 June 2021, the cost of the asset can be up to $150,000 for businesses with an aggregated turnover of less than $500 million.
TIP: In May as part of its 2021-22 budget, the federal government announced that it would be extending the instant asset tax write-off, allowing businesses to write-off the cost of assets used or installed before 30 June 2023, with a turnover of less than $5 billion.
4. Take advantage of the small business income tax offset.
In order to be eligible for this tax offset, you must have had an aggregated turnover of less than $5 million for the 2020-21 year. And be a sole trader or have a share of net small business income from a partnership or trust.
As part of the small business income tax offset, you as a small business owner could be eligible for up to $1,000. Find out if you are eligible here.
5. On time superannuation payments
You need to ensure all your contributions are paid by 30 June 2021 to be included in your tax deduction calcculations.
TIP: You’ll have to wait until the following year to claim contributions on your tax return if you do miss this date.
6. Important Dates for Tax Time
Get organised now to avoid scrambling at the end of the financial year. Talk to your accountant and get your paperwork in order now.
Save yourself the stress this tax season. Get in touch with your accountant and set your calendar reminders to be organised this EOFY here.
Remember, Action is power!
<= SHARE THIS STORY
Disclaimer: This article is information only. It is not intended to imply any recommendation about any financial product(s) or to constitute financial or tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.