This article is brought to you by Sarah Willoughby, Willoughbys Finance Accounting and Taxation
The end of the financial year is just around the corner and time is running out for 201 4 tax planning.
Here are my top tips to enlist before 30 June.
If you run a business and need a tax deduction, why not start saving for your retirement and contribute to super.
Up to age 59, you can contribute up to $25,000 as a tax deduction.
Over 59 you can contribute up to $35,000 as tax deduction.
Need a new Printer or Laptop?
Under the small business tax provisions, from 1st January 2014 any plant & equipment items purchased up to $1,000 can be immediately written off.
For items over $1,000 they are depreciated at 15% in the year of purchase and 30% each following year.
Prepay Expenses / Delay Income
Bring forward certain expenses to reduce your tax liability. For example, prepay rent, subscriptions, interest on business or investment loans.
Do you have the ability to delay invoicing income until after 30 June?
Motor Vehicle LogBook
Has your business motor vehicle usage increased? Start a new logbook before 30 June for 12 consecutive weeks.
Get your records into order
A lot of small businesses don't need to lodge a tax return until 15 May the following year. The tendency then is to put off getting one's records into order until close to that date.
Don't put it off! Get them into order now.
Getting a good snapshot of your business before year end can help you plan for the next 12 months.
Contact your tax agent
If your circumstances have changed in the last 12 months, particularly if income has increased, contact your tax agent before 30 June to talk about your options to reduce tax.
Cleanout Prior Years
Now is a good time to clean out prior year records you are no longer required to keep – 5 years for an individual, 7 for a corporation. And remember, always dispose of them in a secure and environmentally friendly way.
Sarah Willoughby is from Willoughbys Finance Accounting and Taxation is a chartered accountant and tax agent with over 16 years national and international experience.