As 30 June rolls around again for another year, it’s time for business owners to start thinking about their tax and end of financial year responsibilities.
It’s no surprise that the past six months have been particularly challenging for businesses and the Australian Taxation Office (ATO) recognize this.
“The ATO understands that small businesses have a lot on their plate with the day-to-day running of their business. That’s why we’re focusing on addressing common issues we see when small businesses lodge their returns so that we can support them to get it right,”. – Assistant Commissioner, Peter Holt
The Australian Taxation Office have identified the top three most common issues found when small businesses lodge their tax returns.
- Failing to report all of their income
- Not having the necessary records to prove small business expenses claims
- Claiming private expenses as business expenses
Assistant Commissioner, Peter Holt, stated there are three golden rules that business owners must remember when claiming deductions.
- The expense must have been for your business, not yourself
- If you use something for business and private purposes, you can only claim the portion that is related to your business
- You need to have records to prove the claim
The top tip for small business operators is to keep your records up to date.
If you are unsure of what deductions you can claim on your business tax return, or need help determining what portions of a deduction you can claim, please contact our office and speak with one of our Accountants.
Contact us and speak with an Accountant, click here or call
Bendigo 03 5445 4777
Melbourne 03 8621 8100