tax planning TAX PLANNING

If you thought that estimating or predicting your tax bill ahead of time was only something that big business did, you’d be very wrong. In fact, Optima Partners already assists many businesses large and small in figuring out “what the damage might be” before the financial year even ends. This is the process of Year End Tax Planning, and we’re approaching the perfect time of year for it.
There are three broad stages of Year End Tax Planning:

looking into tax1. Analyse
2. Adjust
3. Recommend


During the Analysis stage, client data is examined for any misstatements and misallocations. Since it’s only April or May when we do this, the profit figure is tweaked upwards a bit to simulate a full years trading. Then come the Adjustments. These are typically the income or expenses that are relevant for tax purposes that a business owner may not put through the books. For instance:

• Depreciation
• Interest on leases and HPs
• Interest on related party loans

It’s at this point we can get a fair idea of what a business’ tax liability would be given its current trajectory, and make suggestions to help reduce the tax liability itself, or at least reduce the impact it will have. Popular strategies include…

write off bad debt• Contributing extra to Super
• For trusts, distributing profit to non-working spouses
• Writing off bad debts
• Ensuring old stock is written down
• Increasing PAYG instalments

Client involvement in the process is essential. It gives us an insight into other qualitative factors such as industry and market forces as well as the business owners expectations and overall sentiment. Year End Tax Planning is never 100% accurate, but it doesn’t really need to be to achieve its main goal, which is to highlight tax problems and uncover planning opportunities while there’s still time to act.

If you think your business might benefit from Year End Tax Planning, please contact Optima Partners.



Antony Monaldi - Chartered Accountant






Snr Chartered Accountant


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