Nothing is certain in life but death and taxes. Hence for this week, we have given you some tax tips before June 30 arrives. If you have missed our posts, we are providing you this roundup. EOFY is just around the corner, so make your 2018 tax return more rewarding and check out these tips now!

This allows you to claim an immediate tax deduction for all capital purchases costing less than $20,000, rather than depreciating the cost over several years, as used to happen. This is great for tech items such as computers, tablets and phones, as well as tools and equipment, office furniture and even motor vehicles. The allowance is available to all businesses with an aggregated turnover of less than $10 million.

The expenses that you can claim include:

• Heating, cooling and lighting
• Cleaning costs
• Decline in value (depreciation) of home office furniture and fittings, office equipment and computers (for items over $300)
• Computer consumables, stationery, telephone and internet costs
• Items of capital equipment (such as furniture, computers and associated hardware and software) which cost less than $300 can be written off in full immediately.

If you used your personal mobile phone for work purposes, you can claim a deduction for the business-related use. Make sure you have your phone bills collected together and have kept a log of your business/personal use over a four-week period. That percentage can then be applied to the whole year.

You can claim a deduction for donations of more than $2 to a registered charity provided you have a receipt for the donation.

BONUS: Additional Tax Tips!!!

• According to Dave Ebdon, Senior Tax Specialist at Tax & Super Australia ,“The ATO will be paying particular attention to claims for clothing and laundry expenses, given that last year around 6 million people claimed work-related clothing and laundry expenses,” he said. “This is almost half of all taxpayers, and it is highly unlikely that this many people would be required to wear uniforms, protective clothing or occupation-specific clothing.” “If you don’t have receipts for your expenses, you can only claim a maximum of $300 for work related expenses.”
• Claim everything you are entitled to: Make sure you know what you can claim. For example if you are on the road for work (or work outside) you can claim sunscreen so if your foundation, lip-balm or moisturiser has an SPF factor then you may be able to claim it. You can also claim home office, internet, travel, training, handbags, food when travelling overnight.
• Gather written evidence. Make sure you have written evidence, such as receipts, invoices and bank or credit card statements, for everything you intend to claim.
• Prepay expenses. If you’re a small business you might consider prepaying expenses such as rent or insurance for up to twelve months.

* Soul Finance Group and its finance brokers do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

References:

https://mozo.com.au/savings-accounts/articles/eofy-last-minute-tax-tips-to-jump-on

https://au.finance.yahoo.com/news/12-last-minute-tips-save-taxes-040823563.html

Disclaimer:

 Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post EOFY Tax Tips Roundup appeared first on Soul Finance Group.

5 Things you should not do during tax time

However, putting together your tax return can be a daunting process. There’s that impromptu hunt for your old receipts and financial documents, and all the doubt about what you can claim for when it comes to work expenses.

Guess what? Tax time should never be a hard time. (Just think of the money you could potentially land bank into your account!) You got one more week before the month ends. Here are some easy tips to guide you as you lodge those paperwork!

Don’t DIY your way out of it.

You can, but don’t do it. If you haven’t spent several years of your life working exclusively in tax, don’t do your own tax returns. Hire someone professional to do it for you. No, they’re not free, but the amount of money (and stress) they can save you may be worth it.

Accountants and other tax experts know lots of things about the mysteries of tax that you probably don’t. They can uncover deductions you never knew existed. They can fix up errors that might slow down your refund – or worse, cause you to be audited. Having a registered tax agent complete your return can also reduce your risk of having problems with the ATO.

Don’t lose your receipts!

Develop the habit of keeping your tax records– receipts, credit card statements, bank records, GST details, previous year’s tax records and logbooks. This will enable you to claim everything you’re entitled to. You can keep a folder of all the paperwork, label them properly, and make sure you have a soft copy of these documents in your computer or in an external hard drive. There are also a number of mobile apps for tax record-keeping, or just to keep track of all your expenses.  You can download the official ATO tax app allowing you to track, calculate, and find relevant tax information. my Tax is another app where it calculates a huge range of tax liabilities as well as the benefits of salary-sacrificing super and loan repayments. If you want to keep record of your receipts, Shoeboxed app gets the job done.

Eventually, this will come naturally for you as this can save you time and stress. When the time comes, you should be able to locate all of the necessary documents in an instant.

Don’t underestimate a ‘savings’ plan.

Putting a savings plan in place will encourage good habits and help you feel in control of building your nest egg.  Set up an automatic transfer from your savings account into an investment. This ‘investment’ could be a high interest savings account which allows you to take advantage of the power of compound interest. Alternatively, you can allot it in your mortgage repayment, which could potentially reduce your loan term.

Don’t procrastinate.

As the old cliché goes, don’t put off for tomorrow what can be done today. You will have to complete your tax return at some point anyway so why wait for the deadline? Won’t it be a nice feeling knowing everything is sorted out, if not, at least only few things you’ll just have to deal with? Saves time!

You can also avoid paying fines for the late returns. And while the risk may be low if you’re owed money by the ATO, if you are the one owing them money – expect to hear from them.

Don’t hate the game.

Approach tax time in a positive light so that in turn, you will accomplish it successfully. Having a negative attitude towards it can only impede the process. Have the proper mindset and commitment knowing that a small amount of dedication can lead to a great return, it can help to make the whole process feel like less of a chore. Look forward to things you can get out of the whole experience no matter how daunting it can get. Think shopping and holidays!

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post TAX TIME: 5 THINGS YOU SHOULD NOT DO appeared first on Soul Finance Group.