Eyes on Business Newsletter - May 2015
Posted on Monday 11th May 2015
Tax Planning is an essential component of all business. April and May are the crucial months where time should be dedicated to Tax Planning. This allows time to implement strategies prior to the years end at June 30.
Here, at Eyes On Business we're pleased to see that many of our clients are profitable which is wonderful to see busineses energy paying dividends. For those that are profitable tax planning is a must. Business owners can't ignore this as many have worked too hard to pay more than is necessary in Income Tax.
This is why it's so crucial to spend some time with your accountant now, and why your accounting records need to be up-to-date to create these opportunities. 10 months of profit and loss is worth gold to an accountant to assist business.
Around May is also the time to invest in Super and also pay employee super if you have not done so far this year. See below for some helpful hints.
Why Tax Planning is so important?
- Minimises your tax liability, which means you will have more money for expenses, investment and growth of your business.
- Can help defer income, maximise deductions and manage taxable income.
How do I organise my tax planning?
- Contact your accountant in April/May each year to discuss tax planning.
- Your accountant will discuss with you all tax planning strategies including for business tax, income tax and FBT (if applicable).
What are some steps taken to reduce tax paid?
- Purchasing equipment prior to the end of financial year can be a valuable tax planning strategy however it is important to ensure the purchase is not unnecessary
Fringe Benefit Tax
The FBT (Fringe Benefit tax) year runs from 1 April to 31 March. The FBT rate has been increased to 49% from April 1 2015. FBT can affect business of all size, it’s very important that you discuss with your accountant how your business may be affected. FBT is dependent on the size of your business and annual turnover.
By ensuring Tax Planning is implanted into your business on an annual basis you will be ensuring you are saving your business money. Be sure to contact your accountant now!
- Eyes on Business Newsletter - April 2015
- Eyes on Business Newsletter - June 2015
- Eyes on Business Newsletter - September 2015
- Eyes on Business Newsletter - December 2015
- Eyes on Business Newsletter - May 2016