In this article we explore how businesses that have turnover less than $10 million can maximise their deductions to save on tax for 2018 year and other issues they need to be aware of – deadlines, things to do etc in the coming few weeks. We will touch on employee superannuation payments, $20,000 asset write off etc
This article will apply to businesses running as sole traders, companies, trusts and partnerships.
Find out what payments and lodgements are due in April and May 2018 for you and your business!
If you are required to pay PAYG Instalments quarterly, you should either have received a paper form, or have access to the form online via your MyGov account. Your due date for payment of Instalment is 28 April 2018.
You should have received a paper form by now, or have access to the form online via the Portal.
The due date for lodging and paying BAS is 28 April 2018, unless you are lodging through an agent like ourselves, then you enjoy an extension for lodgment and payment by 26 May 2018.
If you are required to report GST or PAYG Withholding on a monthly basis, your April Activity Statement will be due by the 21st May 2018.
For businesses that have employees, please ensure that you make your super guarantee contributions before 28 April 2018. Previously you would lodge the contributions via the Small Business Superannuation Clearing House (SBSCH). From 26 February 2018 onwards the Clearing House is accessed via the ATO’s online services (Business Portal). If you need a hand with setting up a Business Portal, or would like us to handle this whole lodgement process on your behalf, please contact us.
Businesses that have access to Xero’s Auto Super need to ensure their payment is authorised a few business days before the due day, for the payment to be debited in time.
The FBT year has ended 31 March 2018. For those who require a return lodgement, your FBT Return is due by 21 May 2018. Please contact us for instructions on the lodgement of the return.
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The small business asset write off threshold of $20,000 will continue until the 30th of June 2018. This applies to small businesses with a turnover threshold of less than $10 million in the 2017 financial year.
To refresh your memory, the small business instant asset write off applies to small businesses that purchase assets costing less than $20,000.
Under this concession, business owners can deduct 100% of the asset in the financial year they are purchased, rather than having to depreciate the asset over its useful life which could be 10 years for example. .
The asset is to ready to use in the financial year you make your claim. This means the asset needs to be fully installed.
You must be a small business with a turnover under $10 million
On the 1st of July 2018 the ATO will be reducing the threshold from $20,000 to $1,000, so now is the time to consider whether you can take advantage of this opportunity.
If you are considering purchasing business assets, give us a call first. We can help make sure you are getting the best deductions for your business.
The ATO is introducing a new system – Single Touch Payroll – to help employers report their employee payment information more easily and efficiently.
Single Touch Payroll is a new system for employers to conveniently report their employee wages, withholding and superannuation information at the time when they prepare payroll on their accounting or payroll software.
As an employer you are obliged to pay your employee their wages, remit their PAYG Withholding to the ATO as well as remit superannuation payments to their superannuation fund accounts.
In an ideal world, on the first day your employee starts work with you, they would complete their forms including a Super Choice Form informing you their superannuation fund account details for you to remit superannuation payments.
