This is the fourth of the posts in preparation of the end of the financial year on 31 March ..

Although our normal advice is not to go spending money just to save tax .. however with 31 March coming there are some expenses that you can bring forward and incur early to get a tax deduction in this financial year. Here they go –

Job Materials – you could to look at stocking up on materials for jobs before 31 March BUT remember your total job materials (stock) cannot be greater than $10,000 at year end – click here for the detail. To get a tax deduction you do not need to have paid for them but minimum will need to be a bill dated on or before 31 March.

Job Consumables – these are the small items that you use on jobs which are not normally invoiced as separate job items (nails, screws, glue, putty etc) so you could look to stock up on these items. Again you do not need to have paid for them but minimum will need to be a bill dated on or before 31 March.

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). As long as the work has been committed to is enough to be able to claim the expenditure even if the work has taken place.

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 (example tires).

Asset Purchases – the threshold for assets to be claimed in full is $1,000 (excl GST if GST registered). So consider the purchase of any needed assets below this amount prior to 31 March as they can be claimed as an expense. IMPORTANT – the criteria of the threshold amount is $1,000 per invoice NOT per asset so DON’T put 2 purchases of $600 each on the one invoice as you won’t be able to claim as an expense.

Other Expenses – top up the stationery cupboard, order the printer cartridges, prepay any subscriptions as all these types of expenses are tax deductible.

Donations – pay any donations, particularly school donations, that you wish to before 31 March and get a receipt in order to claim it as a rebate. A company can also make donations and claim as an expense but before doing so please check with us.

BUT, as stated above, don’t just go spending money to save tax .. as cash is always king!