It doesn’t come with as much celebration as the New Year, no one gets fat and suffers drunken Post-Christmas party regrets (maybe that’s a good thing?!). Either way, the (dreaded) EOFY is far more important when it comes to small business.
As a small business ourselves, we know the feeling of wanting to jab a spoon to your eye when talking about tax, but now is the absolute perfect time to be investing in growing your business. Have you made the most of all the opportunities for your business? Here’s 7 tax deductions you need to know about before the end of financial year hits!
1. PREPAY & SAVE
Prepaying your essential expenses will generate an immediate tax deduction. Not only does this include essentials such as rent and business trips, the taxman also provides immediate deductions for any marketing investments made before June 30th.
By securing a marketing campaign with The Urban List before EOFY, your business can truly capitalize on our team of growth experts (we’ve grown our business by 586% in FY15!), and it’s all tax deductible! There is however limited availability, so contact us asap. Not only is this a great way to save your business dollars in the long run, but will increase business right off the bat in FY16.
Contact our partnerships team to book an appointment.
2. CONTRIBUTE TO SUPERANNUATION
Pay all your employee contributions to their superannuation fund prior to June 30th. This means the super must be paid, AND cleared in the business account by this date for it to be counted. TIP: you may need to confirm your employee details are correct to ensure there is no lag in the payments going through in time.
3. REMEMBER INTEREST
An easy one to forget! This will consist of interest that has been paid on your business loans, overdrafts and other finance facilities, plus any interest accrued on a business loan that has not been paid once June 30th rolls around can be claimed as a deduction.
4. STOCKTAKE OF INVENTORY
Ensure you have conducted a stocktake to identify any damaged stock you may have, once an item is damaged this will affect the value of your stock, and essentially your business profit. You’re able to write it down, or write it off.
5. EDUCATION EXPENSES
With an ever-changing environment – continual education is key. By up skilling yourself, and your most important business asset, your staff, you can all stay up-to-date in the latest industry knowledge and required skillset.
6. UPDATE MOTOR VEHICLE CLAIMS
Need to update that car of yours? You’re in luck. You are eligible for a tax deduction for the first $5,000 of the new car. Plus, the business may also classify car expenses such as registration, insurances, petrol, service costs (and that includes a car wash to keep it looking darn fine!). How much your business can claim will depend on the method you use, and your individual car use.
7. HOME OFFICE EXPENSES
Working from home, it’s the usual story for a small business owner! The good news is mixing business and pleasure in your home may make you eligible to claim on your computer, phone, utility costs and more as a work related expense. See if you comply here.