Can you believe we are already at the end of the financial year? In what has been a whirlwind of 12 months, significant impacts and changes have been made to the small business landscape. Small business owners have been kept on their toes, from COVID restrictions to the more recent job shortages, the war in Ukraine, and the election of a new Australian Government.
With June 30 looming, don’t let your business tax take you by surprise. At PCR, we save our small business clients on average more than $10,000 every year in tax, so we thought we’d share some of our wisdom with these simple 2022 tax-saving tips for small businesses.
Tip 1: Have your details prepared
This doesn’t just mean your ABN and your email; we mean the details of your business operations and your finances. A financial statement will often be required; we can assist with this.
You should have your expected income and business profits for the 2022 tax year (July 1 2021 to June 30 2022), including:
- Wages and super
- Interest and dividends
- Rental income received
- Business profits/losses
- Capital gains/losses
Tip 2: Know your expected tax outcome
Planning is hands down the most crucial strategy to save on tax, and it’s never too early to start planning for tax. However, if you’ve been a little unprepared but still want to know what you can expect your tax outcome to be, we can estimate your taxable income and your tax payable BEFORE you lodge it. This can alleviate a significant amount of stress and fear and will assist in creating a tax planning strategy moving forward.
Tip 3: Claim business essentials
It might seem like a great idea to buy a ton of items for the office or your business before June 30 to claim it on tax, but it’s important to make sure you know what you can claim and how much. For example, you may be able to claim a new work phone on tax, but depending on the cost, you may only be able to claim deprecation instead of the entire cost, which can be a bit of a shock if you weren’t expecting it. We advise giving us a call to discuss what you can claim before purchasing it.
Tip 4: COVID-19 considerations for tax time
In the past 2 years, there have been significant COVID19 disruptions, resulting in a range of government assistance payments, schemes and tax offsets for small businesses. These can have mixed impacts on your tax outcome, so be sure to contact us and make sure you pay the correct amount.
Tip 5: Tax changes to be wary of
If you had reduced PAYG tax instalments, meaning that you may have paid less tax than usual, this could result in possible unexpected tax bills for some.
With the change to the instant asset write-off, clients who have purchased new cars, equipment, or equipment-heavy businesses could end up with tax losses. This might not be the most tax-efficient outcome, so it is more important than ever to ensure that you maximise your overall position this year.
For many small business owners, the end of the financial year is one of the most stressful few weeks on the calendar, but it doesn’t have to be. With the help of PCR Accounting & Advisory, you can ensure your business maximises its tax savings and avoids any unwelcome surprises.
If you need assistance with your company tax, contact our expert tax accountants at PCR Accounting & Advisory on 03 9847 7516.
Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.