About SBC

Small Business Connections (SBC) is a media platform that delivers targeted content, news, industry reports, trends and tips to business owners, entrepreneurs, startups and stakeholders in the SME sector.

Contact us
Subscribe to our newsletter
  • This field is for validation purposes and should be left unchanged.

[adning id=”12070″]

[adning id=”12070″]

6 Over looked expenses you can claim this tax time

Tax time is creeping up again and with under a month until another tax year is over it isn’t too late to help reduce that tax bill. Here are 6 commonly overlooked expenses that are missed by small businesses at tax time and how you can get the most out of them.

#1 Instant Asset Write-Off

This one isn’t the most overlooked that is for sure but with big changes made recently it made the top of the list. In its original state the ATO’s instant asset write-off allowed business to claim not only the GST on the asset but also be able to claim all depreciation associated expenses straight away, not over the life of the asset.

The big changes recently made were an increase in the eligible maximum price of the asset and the size of the business that could claim. Originally for assets up to $30K it is now increased to $150k and businesses eligible to claim once capped at 50m are now 500m.

As long as you take delivery, install or first use the asset before June 30, you can claim it to reduce this financial year’s return.

#2 Business Insurance

Insurance is already a bit of a grudge purchase for a lot of people so not being able to claim it on your tax return is a double blow. However, in most cases Business Insurances are considered operating expenses and thus deductible. Think of things like your Professional Indemnity Insurance that covers your professional advice or Liability Insurance for some of the more physical risks of operating a business.

#3 Your Mortgage

If you operate your small business from your own home, you can even claim a portion of your mortgage. Yes, you read that right. Your home’s mortgage might be tax deductible. However, approach this one with caution. If you sell your home, you may have to pay capital gains tax on the business portion that you have declared in your tax return.

#4 Your Tax Expenses

Your accountant should always include these but make sure they are there! You can claim all the expenses that you have incurred relating to preparing your tax return and any tax advice you have got along the way.

#5 Bad Debts

If before tax time, your business is carrying any bad debts, it is a good time to have another look. If the odds of recovering them aren’t looking good you can write them off in your tax return and avoid paying any unnecessary tax on something you aren’t getting anyway.

#6 Subscriptions

Tax time is a great time to review any subscriptions your business may currently have. If you are in a good cash position just before tax time and plan to continue these subscriptions it can be a good idea to pay some in advance to help this financial year’s return.

Tax time for any small business owner can be tough. Plan ahead and do everything you can to help make sure it is as smooth as possible with no surprises. We are not tax experts so make sure you always get advice from a tax professional and get the best solution specifically for your situation.

Sponsored article from Professional Indemnity Insurance

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print

Leave a Comment

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
  • This field is for validation purposes and should be left unchanged.

RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.