Category: Taxation

Your Guide to Business Tax Returns

Owning and operating a business is no easy feat. There’s staff to train and keep motivated, clients and customers to attract and retain and all the behind-the-scenes admin and recordkeeping to keep on top of. And that’s only three parts of an entire process that keeps your business viable, and hopefully, thriving!

If you’re like most business owners, lodging your business tax return is a task that may slip down your to-do list. However, business tax returns don’t have to be hard if you have a professional helping hand to show you the ropes.

Trying to find a straightforward resource on what you need to know about business tax returns?

Read more from the Belmont business accountants at Llara Tax & Accounting to find out all you need to know.

What is a business tax return?

The first point of call is to define what a business tax return is (and what it isn’t).

Upon lodgement your business will report:

  • Taxable income
  • Tax offsets and credits
  • Pay as you go (PAYG) instalments
  • The amount of tax liable to be paid on that income, or the amount that’s refundable.

There are key dates, past and upcoming, that you should be aware of.

What are these dates?

  • May – June

This is prior to the end of financial year, making it a great time to contact a registered tax agent to ensure you fully understand any tax concessions and business deductions you could claim. More on this further on.

  • 30th of June

The cut-off date to claim business deductions or instant asset write-offs.

  • 31st of October

The due date for lodging your income tax return – if not already registered with a tax agent.

What can be claimed as tax deductions for businesses?

There exists plenty of deductions and expenses that can be claimed as a business.

Below is an extensive, yet not all-inclusive list of what your business can claim:

  • Advertising and marketing costs
  • Business travel expenses
  • Costs involved with starting and operating a business website
  • Electricity related to business operations
  • Interest paid on business loans
  • Internet and phone expenses (business related, of course)
  • Leasing an office
  • Office costs such as desktop computers, laptops, and printers
  • Super contributions for employees (if applicable)
  • Vehicle expenses

Unsure if something can be claimed on your business tax return? Talk to your Belmont business accountant when it’s time for you to lodge.

Have these important documents on hand

Preparation throughout the year will make your business tax return lodgement much smoother.

Here’s what to keep record of, throughout the year, in an easily accessible place and format:

  • A list of creditors and debtors
  • Any capital gains events (such as buying or selling business assets)
  • Bank records
  • Copies of all payments received
  • Employee and contractor information
  • Invoices pertaining to any business expenses.

Digital copies of the above information are highly recommended.

Your helping accounting hand is here

Llara Tax & Accounting in Belmont are an experienced team of local business accountants you can trust.

We understand no two businesses are the same, so we guarantee personalised tax and accounting advice and services to all our clients.

Need a professional business accountant you can trust?

Contact Llara Tax & Accounting in Belmont today for people who will genuinely care for you and your business needs.

References:

https://www.ato.gov.au/Business/Reports-and-returns/Income-tax-return/#:~:text=If%20you%20operate%20your%20business%20as%20a%20company%2C%20you%20need,separate%20from%20your%20personal%20income.

https://www.oneflare.com.au/business-centre/news-and-updates/a-guide-to-submitting-your-business-tax-return

Your Straightforward Guide to Keeping Tax Compliant

The Australian government (and worldwide governments for that matter) regulate mandatory contributions for individuals and businesses to adhere to. This, as you might have guessed, is tax.

Follow the rules and you won’t get caught out. However, even unsuspecting individuals and businesses may struggle come tax time, as keeping tax compliance isn’t as straight forward as you would think.

Thankfully, a team of Belmont tax experts are here to provide a straightforward guide to maintaining tax compliant.

Want to know more? Read on from the Belmont accountant and tax specialists at Llara Tax & Accounting to find out.

Educate yourself

With all the day-in and day-out activities that go into running a business, it’s only fair that not all business owners fully comprehend complex taxation legislation and other obligations.

It’s not necessary to know everything, but it helps a lot to know the basics, and more importantly, what you should be doing.

Here’s some important considerations to make in business for easier tax compliance:

  • All businesses, regardless of their structure, need a Tax File Number (TFN), even sole traders.
  • An Australian Business Number (ABN) is also essential.
  • Employers paying wages or salaries must register for Pay as You Go (PAYG) withholding.
  • Businesses who buy and sell goods and services must register for Goods and Services Tax once the annual turnover equals to or exceeds $75,000.

Ensure accurate and up-to-date record keeping

Did you know that one of the top reasons why business owners fail to fulfil their tax obligations is due to poor, incomplete record keeping? Leaving the books to the last-minute leads to struggling to meet deadlines which equates to lodge incorrect information and tax returns.

If only there was another way…

Don’t have time to balance your own books? A Belmont business accountant will be able to ensure accurate, up-to-date record keeping for your business.

Sole trader? Separate your bank accounts

While this isn’t a legal requirement, but rather a strategic business move for sole traders.

Creating and operating a separate bank account can make it easier for you to:

  • Track and control your incomings (income) and outgoings (expenses).
  • This information will also be easily accessible when tax time presents itself.

Declare properly, declare legally

It’s only natural for taxpayers to want to maximise their deductions. However, declaring dubious tax claims could get you in trouble with the Australian Taxation Office (ATO).

So, do the right thing and if in doubt, seek help from a tax professional.

Keep tax compliant with a Belmont accountant

Llara Tax & Accounting are the tax and accounting to turn to for your individual and business needs.

Why Llara Tax & Accounting?

  • We’re the Belmont tax accountants trusted by many individuals, families and businesses
  • As a family-owned, small knit team, we have the time and genuine passion to help our clients
  • Our services incorporate accounting and advisory, bookkeeping and taxation solutions.

Most importantly, we know what it takes to get to and maintain tax compliance.

Contact Llara Tax & Accounting today for professional tax and accounting solutions for individuals, families and businesses.

References:

https://www.mckinleyplowman.com.au/uncategorized/5-tips-to-ensure-your-business-is-tax-compliant/