End of year tax tips
We have put together some tax tips for the end of financial year that we hope you will find helpful.
1. Stock – if you have stock, a stock take must be carried out on 31 March. The stock take list must record the stock item, number on hand and price per unit and then the total stock item value. Remember to use the price per unit as either the lower of the cost price OR current market value (both values to exclude GST). If you use market value then you need to note that against the stock item.
2. Bad Debts – remember to write off any bad debts before 31 March. In order to classify as bad, it needs to have reasonable expectation of no recovery and you have given up on pursuing.
3. Repairs & Maintenance – if you have any repairs that you are going to undertake in the next couple of months, see if you can get it done before 31 March and claim the expense in this financial year instead of waiting a whole year .. or at least purchase any materials required (eg paint).
4. Vehicle Expenses – fill the business vehicles up with fuel before the end of year, maybe buy some more RUC and like repairs above, if there is anything that you can see is going to be needed in the next couple of months, do it before 31 March.
5. Other Expenses – top up the stationery cupboard, order the printer cartridges, prepay any subscriptions as all these types of expenses are tax deductible.
6. Donations – pay any donations that you wish before 31 March and get a receipt in order to claim.
The above tips are just general in nature so please contact us to discuss in more detail.