Reduce your business tax in 2022 with these tax planning tips.
The 2021/22 financial year is about to close and you need to start thinking about your tax return again. Take advantage of these tax-saving tips to keep more of your money in your pocket.
If you think you’re paying too much tax, Sky Accountants can help you with tax minimisation strategies. Get in touch and find out what you can do for your business.
First, you can pre-pay your expenses for the coming year while we’re still in this current year. These can be your rent, subscriptions or insurance. Up to 12 months of the next year’s expenses can be deducted this financial year.
You can also take advantage of the $150,000 instant asset write-off and be able to deduct the business assets you buy from your assessable tax, both new and used, immediately.
You can also review your invoicing for this tax year and postpone some until the next year, if appropriate.
Contribute to your superannuation and top up your voluntary super contributions. You can contribute up to $25,000 in deductible super contributions every year.
Review debtors and write off unrecoverable debts to come off your income regardless of the year it was invoiced.
Check your business structure and assets and where your investments are held to make sure you’re taking advantage of reduced or capped tax rates. It can make a huge difference if your investments are earning significant income.
Document any trust resolutions. Trustees of discretionary trusts must make their resolutions on the trust’s income distribution to its beneficiaries before 30 June every year.
You can also take advantage of investing in Early Stage Investment Companies to afford you some generous concessions. ESIC concessions entitle you to a 20% tax offset on your investment/ These are free from CGT for 10 years.
Like an ESIC structure, the Early Stage Venture Capital Limited Partnership is expanded to combine multiple investors and allows you to get a 10% tax offset on your investments.
If your investment property income is less than the expenses you pay to hold it, you can take advantage of negative gearing and claim a tax deduction for this amount.
You can also invest in income protection and claim it as a tax deduction.
Look at your depreciation schedule for any obsolete items you can completely write off.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a business, accounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437