In our latest instalment of Tax Ready with #Hoffman Kelly, we’re going to be having a look back over the last few months and see the culmination of all your hard work: Bringing it all together for Tax Time.
In previous articles, we’ve reviewed some of the major ways to plan for the upcoming 2022 End of Financial Year. We’ve looked at:
- Loss Carry Back Tax Offset
- Tax Planning Strategies for Superannuation
- Temporary full expensing (TFE) of depreciating assets
And how to use all of the tools at your disposal to have the best tax time in 2022!
In this article we’ll be looking at how to dot the i’s and cross the t’s, making sure everything is in place, depending on your circumstances. At Hoffman Kelly, we look at your unique situation and circumstances which vary wildly with no two businesses being alike. The 2022/23 budget didn’t see any radical tax reform, which means this is a great year to focus on the health and position of your business in the current economic environment.
Bring It All Together
To ensure you’re ready for EOFY ‘22, take note of these tax considerations:
- Make sure super payments are received by superannuation funds prior to 30 June to ensure deductibility of contribution in 2022 – we suggest making most payments at least 10 days prior to the end of the FY
- Look to prepay expenses for additional deductions, such as rent, subscriptions, and even interest if your bank allows – as long as your aggregated turnover is <$50M and the expenses cover a period of fewer than 12 months.
- Review trade debtors and write off any bad debts, which should have little to no likelihood of recoverability
- Review stock and write off any obsolete or unusable stock
- Pay any outstanding ATO income tax debt to ensure sufficient franking credits for fully franked dividends declared during the year, or to maximise the Loss Carry Back Tax Offset
- Consider paying employee bonuses (remember, these attract a 10% superannuation guarantee, so factor into your calculations accordingly)
- To whom can I distribute from my discretionary trust (the hot topic of the tax season, which we will be discussing in detail with all Hoffman Kelly clients)
- Consider whether a corporate beneficiary of a trust is appropriate i.e. a “bucket company”
- If a director of a company, have you applied for a director identification number (and provided it to Hoffman Kelly)?
- Farm Management Deposits – specific to primary producers, but can balance out tax impacts from income fluctuations year to year.
Some of these questions may leave you scratching your head. You may not know the answer, or some of them may be something you’d never considered before! That’s where we come in. Now is the time to meet with Hoffman Kelly to review your business and make sure you’re tax ready before EOFY.
At Hoffman Kelly, we’re always striving to give you the best advice and make your tax time as stress-free and simple as possible. Our team will give you tailored advice that’s right just for you because no two businesses are the same.
Contact us today by calling (07) 3394 2311 or clicking ‘Contact Us’.