If you operate your own business, then now is the time to start planning for your tax bill! Not in June when all the “tax time” sales are on. Below is a list of five generic tax planning tips that, if implemented before 30 June, may help to reduce your business tax bill.
Got a big bill to send a client? Hold off until 1 July to decrease your business income in the current year.
Bring forward Expenses
Got a big bill to pay? Pay it before 30 June to maximise your business deductions in the current year.
Contribute to Superannuation
Increase your business deductions and save for your retirement at the same time! Your Super fund is in a much lower tax environment than you, your company or your trust.
Make Deductible Purchases before year end
Increase your deductions by purchasing consumables before 30 June. For a small business, items of plant and equipment costing less than $1,000 are fully deductible in the year of purchase
Purchasing stock won’t increase deductions.
Physically write off bad debts
Do you have an outstanding debt receivable? Is it unlikely that you’ll ever get paid? If you’re thinking of writing the debt off, do so before 30 June and claim a tax deduction.
Things to Consider
We’ve listed the above strategies in a general sense. Optima Partners can provide a more tailored tax plan which is specific to your business’ circumstances. Certain tax planning strategies may not be applicable to certain businesses and some tax planning strategies are contingent upon available cash and cash flows.
If you’d like to find out more about Tax Planning and whether your business can benefit from it, please contact Optima Partners before 30 June.
Antony Monaldi – Snr Accountant
OPTIMA PARTNERS, April 2015