The end of the 2021 tax year has already come, so it is important to review your small business strategies to help you maximise your returns and minimise your tax payable come June 30^th, 2022. Now is the perfect time to review your expected taxable income (assessable income less allowable deductions) for the past financial year 2020-21, as well as your projected taxable income for 2021-22, as these two key figures will help form a base of your tax planning strategy.

Here are a few tips if you are expected to have a higher income in the current financial year, compared to the next financial year projections.

Get in contact with your local Accountant at R T Accounting & Taxation Services to consider the following steps:

• Prepay some of your 2021-22 expenses including.
  • Rent
  • Insurance
  • Business Subscriptions to professional associations before June 30^th, 2021, as up to twelve months of the following year’s expenses can be deducted in the current tax planning year provided you pay the cost upfront.
• The instant asset writes off of up to $150,000 has been heavily publicised until now and has been extended to June 30^th, 2021, provided the asset was bought and first held ready for use prior to this date, so if you need to buy a new car for the business, now would be the time to do so. Be wary, however, as the moment you use a company car for personal use, this invokes a fringe benefit payable by the company, so it is best to contact your accountant at R T Accounting & Taxation Services to see whether this is right for your business.
• Reviewing and perhaps even postponing some of your client invoicing for the current tax planning year so the income is then reported in the 2022 tax year.
• Topping up your voluntary superannuation contributions and making the payment prior to June 30th, 2021.
• This item is not done nearly enough by many small businesses, but it is very important to constantly review your trade debtors and write off any unrecoverable debts as you do not want to be paying tax on income you will not receive.
• If you are in the maiden year of your business, deducting any start-up expenses you incurred, such as obtaining legal and/or financial advice on your business structure along with any fees relating to the setup and establishment of your business will reduce your tax payable for the 2020-21 tax year.

If you are expecting to have a higher income in the 2021-22 tax year, you should get in contact with us to discuss:

• Bring forward any client invoices into the 2020-21 tax year for work that will be carried out in the 2021-22 tax year. Having clients pay your invoices by June 30, 2021, will help reduce your taxable income in the 2021-22 tax year where you are expected to have a higher assessable income.
• Paying your expenses on their due date as opposed to paying them early and getting the deduction in the tax year where your assessable income is expected to be low anyway.
• Postponing the purchase of any assets you may require in the 2020-21 tax year into the 2021-22 tax year. However, it is important to note that instant asset write off rules can change in the 2021-22 tax year so get in touch with us to help guide you through the process.

The most important tip we can give you is that you should avoid spending on business assets for the pure sake of claiming the tax deduction. In most cases you will be paying $1, to save 26 cents in tax (based on the small business tax rate). It is simply not worth buying these items as it means less net money in your pocket. Everything you purchase for the business should have a purpose in enhancing your business to be the best it can be.

Additional Tips for Small Businesses

GST Cash Accounting

Ask yourself this, why and how should I pay GST on income I have not yet received? If you do not know the answer to that question and are on the accruals-based GST accounting method, it’s time to get in contact with R T Accounting & Taxation Services to change your accounting for GST to cash basis rather than accruals. GST Cash Accounting is also much better for your overall cash flow.

Instant Asset Write-Off Vs Depreciation

The whole idea of starting up a business is to grow and make more income over time. You could take full advantage of the Government’s instant asset write-off scheme mentioned earlier and claim the deduction in the current tax year, potentially reducing your tax planning significantly, or you can choose to depreciate the asset over its useful life and claim a portion of the asset over several years. What we are doing is reducing your taxable income by a smaller amount over the years as opposed to taking the full deduction in one year. This is very beneficial for those small businesses in high-growth industries.

Is Your Information Correct & Up to date?

Having the most accurate and current information is another key aspect of tax planning that can help you minimise your tax payable as well as help us, your accountant to help you make more informed tax decisions. This can include:

• Ensuring the logbooks for your company vehicles are correct and up to date. You will need to start a new logbook if your current one is more than five years old anyway. It is often best to create a new logbook every year to get the true cost of operating your business vehicle. There are many free apps that you can use to track mileage of your vehicles.
• Ensure you do your stock take as of 30^th June 2021 is your business trades with stock.
• Accounting for private use on business assets in your GST returns. You cannot claim GST on private expenses, so if you use your car for 20% private use for example, you will need to adjust your GST on expenses component accordingly to factor in the personal use.

Been Affected by COVID-19?

R T Accounting & Taxation Services are here to help you in these tough times as we can help liaise with the ATO to:

• Give you extra time to pay your debt or lodge tax forms such as activity statements.
• Help re-construct tax records that are lost or damaged.
• Setting up payment arrangements tailored to your individual circumstances including an interest-free period.
• Remitting penalties or interest charged during the time where you have been affected.

Managing your business tax obligations is one of the most daunting and important responsibilities when starting a new business. The piece de resistance of tax obligations is lodging your tax return at the end of every financial year. However, what most businesses do not realise is how and when you can lodge your tax returns. It is dependant on the structures of your organisation. Below is a guide on when to lodge tax returns for each of the four main business structures. They are Sole Trader, Company, Partnership, Trust.

Sole Trader

If you are a sole trader, you just need to file your individual tax return. Which covers all your personal and business income. You can lodge either by yourself through the ATO myGov portal or through R T Accounting & Taxation Services.

If you lodge yourself then your return is due by 31^st October. However, if you lodge through R T Accounting & Taxation Services and are on our client list before 31^st October. We will tell you when your tax return and tax payments are due. Often it is due by end of March the following year. 

As a sole trader, you are required to fill out a separate section of the individual tax return. And professional items schedule for individuals. Fear not if you are on our registered agent list as well will sort that out for you.

Partnerships

If you are involved in a partnership you are required to lodge a partnership tax return through the ATO myGov portal or through R T Accounting & Taxation Services.

So, if lodging yourself the lodgement date is 31^st October. If you are lodging through R T Accounting & Taxation Services, we will tell you what date we need to lodge the tax return. Which is often not before March the following year.

It is important to note that the partnership itself does not pay tax on the income it receives. But shows how much each partner to list as income they received on their personal individual tax return. If you have a partnership, you should not prepare and lodge your individual tax return. Until the partnership has completed its tax return.

Company

If you are a director of a company, you are required to lodge a company tax return through the ATO myGov portal or through R T Accounting & Taxation Services. 

The lodgement date for a company is generally the end of February, however it is beneficial to check with your registered tax agent as to the specific date your company tax return is due as it changes from business to business. A company’s income is separate to personal income so it is important to separate the two, as well as meaning you will have to submit 2 tax returns come year end (individual and company).

Please not if you do not lodge your previous financial year tax returns on time, the company tax return is due by 31^st October.

Trusts

If you are involved in a trust you are required to lodge a trust tax return through the ATO myGov portal or through R T Accounting & Taxation Services. 

And, if lodging yourself the lodgement date is 31^st October. If you are lodging through R T Accounting & Taxation Services, we will tell you what date we need to lodge the tax return by, which is often not before March the following year.

It is important to note that the trust itself generally does not pay tax on income it receives but shows how much each beneficiary to list as income they received on their personal individual tax return. If you are part of a trust, you should not prepare and lodge your individual tax return until the trust has completed its tax return.

Get in Contact with Us!

We are conveniently located just 10 minutes from the Sydney CBD in Kingsford. If you are intrigued about how to become our client and gain access to our special perks, please get in contact with us to help you get what you deserve.

As with most queries tax returns related in Australia, the answer depends on several factors, but here are a few key things to keep in mind for the 2021 tax year which ends on 30^th June 2021.

If you are lodging directly with ATO

If you intend on preparing your own tax return through the Electronic Tax Pack in myGov, your return is due to be lodged on 31^st October, or given 31^st October falls on a Sunday this year, 1^st November!

So, if you correctly file your own tax return, and the ATO does not raise any queries, you will likely receive your Notice of Assessment over the next 28 working days after the tax return has been lodged. And, if you are due a tax refund, it will hit your bank account around the same time as the Notice of Assessment. On the contrary, if you have a tax payable, the Notice of Assessment will tell you the payment date along with payment details for an efficient transaction. This could change based on several things, but generally, it should be paid within 4 weeks after the Notice of Assessment is issued.

If you lodge through R T Accounting & Taxation Services (Registered Tax Agent)

If your Accountant, who is a registered tax agent is lodging your tax return on your behalf, if you have a good history with the ATO, you could receive a large extension on both your due date for lodgement and payment compared to those lodging by themselves. R T Accounting & Taxation Services have a very good lodgement history with the ATO and unlock the full range of extensions for our current clients as well as any future clients.

Most individual tax returns will be due around mid-May 2022, which is close to 11 months after 30th June 2021. However, some individual tax returns will be due at the end of March 2022 as those who often have a tax payable at the end of the year as opposed to a refund will be among those affected. This date usually only applies to those who have made a substantial income from sole trader, investment, or business income where tax does not periodically tax out during the year as it would for those on salaries and wages.

Regarding refunds and payments:

• Tax returns tend to be processed within 5 to 7 days of lodgement by registered tax agents. And usually, the refund will be received within that time frame also should there not be any additional ATO queries.
• If you have a tax payable, it will rarely be due prior to February 2022. And more often than not it is some time in the first week of June 2022.

So, there are some definite benefits to have a registered tax agent lodge a tax return on your behalf. It would primarily be beneficial to those with tax payables. As they essentially have a year from financial year-end to pay the liability. This can help with cash flow for your business or yourself.

If you have a poor lodgement history?

If you have a poor lodgement history with the ATO, your return will be due 31^st October 2021. Regardless of if you lodge through a registered tax agent or lodge it yourself. Your tax payable, if applicable, will also be due that same day also.

Need an Extension?

If you would like to qualify for an extension to lodge and/or pay, let alone mentioning. Ensuring that you receive any deductions you are entitled to. As well as lodging correctly with a relatively lower risk of ATO queries. You will need to be on our client list before 31st October 2021. If you have a historically poor lodgement history and this return is due by 31st October. We can help lodge your tax return before this date. So in the 2022 financial year, you qualify for the lodgement extensions.

Get in Contact with Us!

We are conveniently located just 10 minutes from the Sydney CBD in Kingsford. If you are intrigued about how to become our client and gain access to our special perks. Please get in contact with us to help you get what you deserve.

The business owners in the Eastern suburbs of Sydney can get the best of their deals by getting assistance from a business tax advisor. It is a place where they can find suitable tax consultants in Eastern suburbs who can guide them in their business affairs. At present, business owners have so many problems to tackle regarding their business taxes. They have to face different problems such as tax investigation, tax payment, tax audit, and many more. If you are one of those business owners, don’t worry about these things because the tax consultants in Sydney can get your problems solved for you. They can give you complete advice on various aspects of your business including taxation issues.

With the help of a tax consulting company, you can get your taxes sorted out so that your business stands free from all the tensions. As soon as you appoint the tax consultants in Eastern suburbs of Sydney, you will see the difference in their service. The first thing that you will feel is the professionalism of the people in this organization. They will handle your business matters in a very friendly manner. Even if you have to make some corrections in the tax records of your business, they will provide solutions for that also.

Business Tax Consultation

In addition to this, there are many other advantages that you can enjoy by getting the services of a business tax consulting company. For instance, you can get a reliable expert who can help you get the right kind of tax concession that you need for your business. Moreover, he will also know the right tax regulations that you need to follow for your business. This will help you save a lot of time and money.

Save a Lot of Money

Apart from this, a professional business tax consultant from RT Taxation & Accounting can also help you save a lot of money on your tax return. This is because he will help you find the tax discounts that you can avail for your business. If you do not know what tax discounts can be availed for your business, then it is best to consult a tax consultant in Sydney. He will tell you about all the options that are available for you.

Business Tax Discount

There are two types of business tax discounts that you can avail of in Australia. These are the concession and the deferment. If you have a big business, then you can seek a tax reduction on your concession. This means that you can get a 50% discount when you pay taxes for your business on a yearly basis. This is one of the most preferred tax breaks by business owners.

Opt for a Deferment

However, if you have a small business, then it is advisable to opt for a deferment. This means that you will not have to pay taxes on income that you earn before you pay tax for it. This is a very good business tax consultant in Sydney that will ensure that you get to benefit from every advantage that is provided to you.

Tax Consultant Will Calculate Everything

When you contact a business tax consultant in Eastern Suburbs, you should give him all the required information regarding your business. This includes your staff, assets and liabilities, cash and assets of investment, expenditure, your turnover and profit margin. The tax consultant will then do his homework and study your business and then draw up a tax calculator that will help you work out how much you can save. This will help you arrive at the right amount of concession and deferment that you can avail for your business. All you need to do is to give him the right information and you will get the right tax benefits.

Where to Find the Best Business Tax Advisor in Eastern Suburb?

There are many business tax advisor in eastern suburbs of Sydney. RT Taxation & Accounting is one of them.

The best business tax consultant in Sydney is RT Taxation. You will be able to find plenty of consultants online that will be able to guide you towards the right path for your business. Sydney has become quite an important financial hub and people from all over the country as well as from other parts of the world are heading towards Sydney for their business needs. In order to be in the limelight, you need to start looking for a professional who can help you with your business tax return.