Shae's tips : The Benefits of Tax planning
You’ve heard of the old adage nothing is certain but death and taxes?
Both have been around forever and are often quite inconvenient! We like to minimize your inconvenience in terms of taxation (sorry, we can’t help too much with the other!). At the end of every financial year, we help our clients by offering Tax Planning to them regardless of Covid’s big ugly head still sending the world into a tailspin. By the time May 1st rolls around, we are busy tidying up compliance work and putting March quarter BAS’s to bed and moving into Tax Planning season before June 30th. With so much uncertainty still around, we need to prepare for what’s to come.
So, what is Tax Planning?
Tax Planning is the projection of future taxable income to minimize the tax you owe and to maximise your return, where you save money. There are several ways where this is done and all perfectly legal! We analyse what your biggest liabilities might be and advise where and when you should pay for them throughout the year. Other ways are through making donations, pre-paying on some of next year’s expenses, making voluntary Super contributions and for business clients, paying Superannuation liabilities on time, writing off old, unrecoverable debts, varying down your instalments, planning your cash flow and within this, be aware of and plan for your tax payment dates.
Even though Covid-19 isn’t as big a threat as it was in 2020, some considerations are still valid in 2021. The JobKeeper initiative wrapped up in April of 2021, so we can still look at what you can claim here. "Should JobKeeper payments cover the majority of a business’s wage costs, the business may have little or no net wage deduction”. If this applies to your business, you will need to consider how this affects your income tax liability.
Also ask us how and what you can still claim if you worked from home even in the 2021 financial year.
We’re here to answer your questions and guide you along the right track, so if you haven’t already, book in with us today, we’ll see you right.