Are you ready for tax time?

The end of the financial year is just a week away. We know that tax time is always busy, so we thought we would share a few quick tips to help you sail through lodgement season.

Some tax time tips:

  • Gather and sort your business records now, including cash, online, EFTPOS, bank statements, credit or debit card transactions covering:
    • Sales and other business income
    • Expenses you can claim as a business deduction such as staff wages, contractor expenses, operating expenses and business travel expenses.
  • If you changed your record keeping software during the year, it is best to check that all your information has transferred over correctly.

Are you a sole trader?

  • Even if your income is below the tax-free threshold, you will still need to lodge a tax return.
  • Do you pay PAYG instalments? Lodge your activity statements and pay all your PAYG instalments before you lodge your tax return, so your income tax assessment takes into account the instalments you've paid throughout the year.

Are you a partnership?

If you operate your business in a partnership:
  • The partnership lodges a partnership tax return, reporting the partnership's net income (assessable income less allowable expenses and deductions)
 
As an individual partner, you report on your individual tax return:
  • Your share of any partnership net income or loss
  • Any other assessable income, such as salary and wages (shown on a Payment Summary), dividends and rental income.
 
The partnership doesn't pay income tax on the income it earns. Instead, you and each of the partners pay tax on the share of net partnership income you receive.

Are you a trust?

If you operate your business through a trust, the trust reports its net income or loss (this is the trust's income less expenses and deductions) and the trustee is required to lodge a trust tax return.
 
As a trust beneficiary, you report on your individual tax return any income you receive from the trust.

Are you a company?

If you operate your business through a company, you need to lodge a company tax return.
 
The company reports its taxable income, tax offsets and credits, PAYG instalments and the amount of tax it is liable to pay on that income or the amount that is refundable.
 
The company's income is separate from your personal income.
 
If you have any questions about your tax return or how you can seek the best outcome for your circumstances, be sure to give any of our Moore Stephens offices a call and we will be happy to assist.