You may be eligible for further lodgement concessions if you use a licensed Tax Agent in Melbourne to prepare and file your tax return. The majority of tax returns filed by a registered tax agent are due by the following year. It is customary at this time of year to give gifts to existing clients and employees as a gesture of goodwill and as a thank you for your business, hard work, and support.
There are several exceptions to this rule, so even if you’ve hired a professional Tax Agent in Melbourne, you should confirm your due date with them personally. You should personally deliver the best services to your greatest customers.
What are the Effects of Taxes on Business?
Numbers Pro Accounting suggests that you comprehend how The impact of accounting services on the customer. It’s the holiday season, so why not enjoy it while also figuring out how to save time?
Tax-Deductible Guidelines For Customers
If you take your client out or entertain them in any way, it is not tax deductible and you will not be able to claim GST back. There are special procedures in place to prohibit deductions and GST credits from being claimed for entertainment expenses. Restaurants, a show, golf, and corporate race days are all examples of entertainment.
Presentation For a Customer
If you deliver a presentation to a customer, the gift is tax-deductible as long as there is an expectation that the firm will benefit. A Christmas basket, a bottle of scotch or wine, gift certificates, a bottle of perfume, flowers, a pen set, and so on are typical examples.
How to Avoid Paying Taxes?
If you really want to avoid paying taxes on your office Christmas party, hold it on a workday. This approach, Fringe Benefits Tax (FBT) is unlikely to apply regardless of how much you spend per person. If your company’s Christmas party is held outside the office, limit the cost of your celebrations to $300 per participant to avoid paying FBT.
How to Avoid Tax Christmas Expenses?
To avoid problems at tax time, make sure you properly account for your Christmas expenses. A small business checklist for owners who want to reduce their tax liability.
Here are some pointers:
- Prepay expenses before the end of the year: If your income is less than $10 million, you can deduct 100% of the item in the year it is paid.
- Move the acquisition of plant and equipment forward: Plant and equipment installed and ready for service by June 2023, are entirely tax-deductible. This year, the General Asset Pool will be completely deducted.
- Make the most of your tax-deductible debt: Loans made for personal reasons are not tax deductible.
- Examine whether refinancing options for increasing deductible debt are available.
- Increase your superannuation contributions: Super is only deductible if paid by June 30.
Consult Your Financial Planner
Write off bad debts: If debtors are not recoverable and all efforts to resolve have been exhausted, write off the bad debt. Verify that GST is adjusted. Deduct slow-moving or outdated inventory: Examine your stock holdings. If the market value is less than the cost of the stock, the difference might be deducted.
Examine the depreciation rates of your plant and equipment: Examine the depreciation schedule for any scrapped plant and equipment that can be deducted. Examine the useful life of the equipment and decide whether it is necessary to increase the rate of depreciation.
Prepare for a Change in Corporate Tax Rates
- Companies with a base rate of 26% pay 26% tax, whereas all others pay 30% tax.
- Rates will be raised to 25% in the fiscal year 2023.
- Examine any potential strategies for achieving the target tax rate.
- Prepare your tax position before June 30th: Determine chances to alter tax payments and increase cash flow.
- Execute the above-mentioned tax planning and other savings.