2020 has been a tough year for all businesses in Australia. From the bushfires and COVID-19 to the lockdown, things have been pretty difficult. Due to such reasons, your business finance is a bit of a mess. But there is nothing to fear, the professional Tax Accountant will assist you during these tough times. Doing so will keep you away from unwanted issues or problems for the next year’s tax time. The tax professionals will provide you with a silver lining for your tax return with upgraded and new claims for your business.
Things To Do For Your Business Tax Return
There are several things that you can do for your business tax return that will provide you with an injection of cash, which you require right now. Look below!
- Things you should claim: The financial outlay to enable all the businesses to run and stay active during the pandemic has been massive. From the increasing production cost to the safety equipment, all businesses within the country had to spend some cash so that they can earn cash in return. The website of the Australian Taxation Office has provided a list of services and good, which you can claim in 2020. Some of the things you can claim are accountant fees, and protective gear for COVID-19 for your staff members, customers and yourself. You can also claim a brand-new technology when you are trying to replicate a complicated office environment at home.
- Unpaid invoices that will work in your favour: When you have plenty of unpaid invoices from the FY19/20, which your customers cannot pay due to the lockdown, you can utilize them in your favour. The bad-debt stands out as a legitimate write-off, and it’s referred to all the unpaid invoices of the previous financial year. When you are sure that these unpaid invoices will not get paid, you can use them to lessen your taxable income. But before you take this step, it will be much better if you speak to the professional Tax Agent near me about all your circumstances. Doing so will enable you to make the correct decision.
- Boozy lunches are not a tax write off: It’s highly important to follow the rules when it comes to tax claims. Rather than the penalties, you also have to consider your business and employees. There have been so many changes in the tax returns. So, you need to know about the things that you cannot claim. Some of these things are uniform dry for the non-uniform products, client dinners or lunches, and vehicle costs over 5000km without a logbook. If you think you can sneak in some pub lunches for this year’s tax return, well think again, the penalty will be around $360,000. You might also face jail time in some cases.
Mistakes You Need to Avoid for Business Tax Return
The Australian Taxation Office works hard to discover mistakes within the tax returns. For such reasons, you need to make sure that your Business Income Tax Return does not contain any mistakes. But to know what are the mistakes you should avoid, check the information below.
Estimating Your Tax and Income: For your Business Return, you need to make sure that you enter the correct figures for your income and the tax, which you need to pay. Remember, the ATO carries all the records, and they will compare the information that you submit. Even though they will not have some of the records, but they can still see your accounts. You have to make sure that all the entries are accurate and complete. If few dollars are also out of place, it will grab the attention of the ATO.
Estimating the Tax Deduction: It’s better if you don’t try to be creative with your tax deductions because the ATO will analyse each product you claim. They will compare your deduction with other individuals in your location, age group, line of work and industry. So, when you are estimating the tax deduction for your Small Business Tax Return, it will be much better to take the help of an accountant. It’s because they are well-aware what the ATO is looking at and knows what’s allowed within your tax deduction.
No Proof of Purchase and no Receipt Deduction: When you pay for all the work-related products and do not keep receipts of it stands out as a costly mistake. When you do not have receipts for your expenses, you can only claim $300 work of all the work-related expenses.
Parting Thoughts!
There are many things that you cannot control in these difficult times. But there is no need for your tax returns to be one of them. You can take all time to check the purchases you have made along with your claim options. You can get in touch with a good tax accountant to receive proper understanding and make the right decision for your tax return.
