Many systems have changed and you need to familiarise yourself with some new information that could possibly benefit you. Tax season isn’t the most exciting time for business owners but here’s a checklist and accounting tips for plumbers like you.
The ATO has to know how much your plumbing business is making. Most income are subject to tax but there are some exceptions like not-for-profit organisations that have been endorsed by the ATO. Check the ATO flowchart to know if your income can be exempted. Documents you can use to show your income include your PAYG payment summary for regular employees. This is the amount withheld for tax purposes.
Income from pension must be declared under super pensions and annuities, except government payments like age pension. What you need to declare depends on your income and age. You need to include a taxed element, untaxed element and tax-free component in your tax return. Other sources of income include government allowances and payments, foreign income, investment income like rent, dividends, CGT and interest, trust income, compensation, deductions, discount share, insurance payments, etc.
Remember that you don’t need last year’s tax returns to do this year’s as long as you have all relevant documents. Tax rules differ each year so outsource an accountant to help you with your taxes. If you want to lodge online, your gross income can be from last year’s data or tax return documents.
We have mentioned important tax advice for plumbers to maximise your tax payments. Handle tax deductions and credits to reduce tax for your plumbing business. Capitalise them fully and be ready for support documents to do so. If you purchase something for work but your company did not reimburse it, you can claim a deduction for it, provided you have a receipt or bank statement to prove purchase.
You can claim vehicle and other travel expenses you might have incurred to do work. Commuting expenses are non-deductible. You can also claim a deduction for your home office. It can be your mortgage, rent or rates. Measure the floor area that you use for your office.
If you paid to educate yourself in relation to your plumbing business, you can claim a deduction. You should have a salary increment and improve your plumbing skills or knowledge to be able to claim it as a deduction. You need formal qualification as well. Feel free to call a tradies accountant to help you out.
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