End of Financial Year Tax Tips for Businesses
23 June 09You've got 1 week left to 30 June which is your last chance to accelerate your tax deductions and boost your tax savings. Here are our top tax tips for business:
Accelerate your deductions
If you are a small business and want to claim the 50% Investment Allowance this year for a business investment you have made, you need to have the item installed ready for use in your business by 30 June.
If cash flow allows, pay by 30 June for repairs, consumables such as office stationery, trade gifts, subscriptions and donations and claim the tax deduction this year. There are special rules for small businesses that give them access to higher immediate deductions for prepayments and depreciable assets so take advantage of what is available to you.
Pay June quarter employee super contributions if you want to claim a tax deduction in the current year.
Declare any Directors' fees and bonuses before June 30 and providing the company is absolutely committed to them, you are entitled to the deduction even if they have not been paid.
Write off what you don't need
Write off bad debts. If you've made every attempt to collect the money and failed, write it off in your debtor's ledger.
Write off trading stock that is damaged or obsolete.
Review your asset register and scrap any obsolete plant and equipment sitting on your depreciation schedule.
Manage the administration
Help neutralise any capital gains you made during the year by realising any capital losses.
Where you are operating a discretionary trust, the trustee should resolve how the income of the trust will be distributed and minute the decision.
Where management fees are being charged between related entities, make sure that the charges have been raised by June 30.
