Tax Deductions for Small Business

18Jun '20

Tax Deductions for Small Business

Are you claiming all the deductions you are entitled to?

  1. Operating expenses including accounting, administration, marketing costs, office running expenses and trading stock. Legal and insurance fees, vehicle costs, advertising.
  2. Employment expenses such as salary and wages, fringe benefits, super and training costs.
  3. Operating expenses specific to your business such as freight, membership fees, professional education, protective equipment, tools, specialized software.
  4. Repairs and maintenance to assets and business premises.
  5. Capital expenses such as machinery and plant and equipment, vehicles, furniture and computers. Depreciation of these assets may be deductible if the expense was not written off immediately.

The ATO Radar this year

  1. Travel expenses such as fares, accommodation, meals
  2. Motor vehicle expenses, keep a log book, records for fuel, repairs and servicing, finance arrangements, insurance and registration.
  3. Fringe Benefits – have you captured all benefits provided to employees? Vehicle and entertainment benefits are looked at carefully by the ATO.
  4. Jobkeeper – if you have claimed jobkeeper for business participants and/or employees the ATO will be looking closely at payroll records.

Instant Asset Write Off This year the write-off threshold has increased to $150,000 up from $30,000.  This will be available until December 2020.  Please speak to us about buying new assets and your ability to claim an immediate deduction. Keeping Records Keep valid tax invoices for any expenses over $82.50 (inclusive of GST)

  1. Keep records for all business transactions (income and expenses), activity statements and financial reports for at least five years.
  2. Keep all records relating to employees, contractors and payroll for at least seven years.
  3. If your business is a company keep all records for at least seven years including director meeting minutes.

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 any more tax than you have to. Come and see us for your tax returns.  We will ensure the process is smooth and accurate and get your return lodged quickly.  We also offer fee from refund facilities.

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