Welcome to our May monthly newsletter!
“A person doesn’t know how much he has to be thankful for until he has to pay taxes on it” – Ann Landers
We are now nearing the end of the financial year with tax time approaching. Now is the time to make an assessment of your profits and apply any tax saving strategies that you can! We are now taking tax planning appointments and are happy to provide anything from a simple chat about your potential taxes to a full tax planning service which includes a detailed estimate of taxable income, income tax payable and a tax savings report which explains which strategies can be applied to reduce income tax this year and potentially in future years. If you are unsure if this service would be beneficial or would like to know more then please contact our office for more information.
Monthly tax tip:
The pandemic has certainly taken a financial toll on all of us with bills and debts being postponed or potentially written off for some. Small business owners may find their debtors quickly piling up faster than they are being paid. We often find that this is an area of a business that is ignored with very few small businesses following up with unpaid accounts let alone knowing how much is owed to them. Unpaid invoices can become what is considered “bad debts” and not many will claim this as a tax deduction. A debt is considered “bad” and can be claimed if the following conditions are met:
- The debt was included as taxable income in a current or previous income year (e.g. a business using the accruals method of accounting for income tax purposes)
- The debt must be considered non-recoverable (this means that it is extremely likely that it will not be paid not just currently but also at any time in the future)
We suggest reviewing your debtor accounts at the end of each financial year and discussing this with your accountant prior to tax return lodgement to ensure that you are not paying taxes on income that you will not be receiving.
Important Dates!
15 May:
- Lodge 2020 income tax return for all entities
- Pay 2020 income tax for companies and superannuation funds
21 May:
- Lodge and pay April 2021 monthly business/instalment activity statement
26 May:
- Lodge and pay quarter ending 31 March 2021 business/instalment activity statement
28 May:
- Lodge and pay quarter ending 31 March 2021 superannuation guarantee charge statement if contributions were not paid on time*
*Super guarantee charge is not deductible.