The end of financial year (EOFY) can be exhausting, particularly if you haven’t been vigilant in keeping good records or track of your receipts. With all the changes, thanks to coronavirus, tax time is a lot more complicated given the number of people working from home and the changes to the tax law, writes Gerry Incollingo, MD of LCI Partners.
We’ve put together some of our top tips to get your tax files in order, prior to visiting your certified tax accountant.
Find and file your receipts
Dig out all your receipts from those stuffed in a shoebox, at the bottom of your handbag or still floating around your car. Note down the amounts, suppliers and what work-related tasks you used it for in an Excel sheet and file them into folders clearly labelled into categories such as travel expenses, assets, work from home expenses, etc.
There are a lot of great apps and online accountancy tools to help simplify tax time. Simply scan and upload receipts using your phone, track GST and invoices. You can use the government MyDeductions app or E-tax to help you get your tax files in order.
Understand your obligations as an employer
Even if you run a family business that operates from the garage and have only 1 or 2 employees who are related, it’s your responsibility to make sure that you understand your employee obligations. For example, making sure your payroll records are up to date and that you issue PAYG statements before the deadline, so your workers can submit their tax returns.
Check your deductions
If you are still working from home due to snap lockdowns or your employer has decided you’re more productive from home, it’s important to know what you’re entitled to claim on to maximise your tax refund. Don’t forget to include the instant asset write-off if you are eligible and any donations to charity.
Contact a tax accountant
A certified tax accountant is going to be up to date with the most recent changes to tax laws and will ensure you get deductions you may not realise you’re entitled to, as well as help you understand the more complex aspects of tax such as capital gains and fringe benefit taxes.
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