Business owners don’t seem to be very confident about their computation but they love to get some handy deductions when paying taxes. Preparing tax before hand is thus always great.
Tax planning in Horsham for SMEs can go a long way. Consult with a qualified tax planner in Horsham to make sure that you don’t miss out on your tax dues. Working on it actively will provide the added bonus of tax deductions.
Here is some good tax planning tips for small business owners.
Pay it before the time:
If you pay the superannuation of your employees that will make you qualified for getting tax deductions. If it’s paid at the beginning of the tax session then the assessee gets the deduction in the current year. Delaying of the payment will push the deduction in the next financial year.
Write off the bad debts:
Every business has got debtors. If a business is having a list of debtors who are not showing it up for a long time, then it is better to mark them as bad debt. Put a thorough evaluation and make a list of potential bad debt amount and write it off. It is advised to write off the bad debt before the tax session and you can avail the deductions in this session.
Buy the office supplies before hand:
Buy all your office consumables like ink, stationery etc before the computation of the tax. If you can lodge all the entries before the 30th June then you shall have a good amount of deductions for this tax session.
Giving employee bonus:
Bonus is a legitimate business expense. Businesses can avail deductions for paying employee bonus. For small business owners I would advice to release the bonus before 30th June, so that you can show it in your current year tax computation. This smart move will help to save some of your bucks as taxes.