EOFYsavingsTaxtax claimstax tipstips

Tips for EOFY

Where is it going …

the year that is .. the so called summer period has been and gone (after really never coming!), a quarter of 2017 has nearly all but gone, daylight savings ends soon and then we need to fit in an end of a financial year!

Here are some tips for the end of financial year (EOFY) that may you reduce the amount of tax that you have to pay for 2017:

Stock – if you trade stock you will need to conduct a stock-take on 31 March and this needs to be recorded. However the value per item that you use may reduce your tax. The values that you can use are the lower of cost price or market value, with market value needing to be substantiated by evidence if used. And just to clarify different valuation methods can be used for different stock items. Also any obsolete stock needs to be physically disposed of before 31 March.

Bad Debts – in order to claim a bad debt, it needs to be physically written off and evidence that it is not being pursued by 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 tyres).

Asset Purchases – consider the purchase of needed low cost assets (those less than $500 excl GST) prior to 31 March as they can be claimed as an expense. They are some quirks with this rule so please discuss with us if you are considering this.

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 before 31 March and get a receipt in order to claim it as a 2017 rebate.

Congratulations on making it to the end of the financial year and remember .. to check out some free tools to help you prepare for the new financial year click here