EndureGo Tax, a fully licensed Australian Registered Tax Agent, is here to guide you through the EOFY jungle with some tips for traders and subcontractors on optimizing your tax. Let’s jump right in!
Picture this: you’re a hardworking trader or subcontractor, and the end of the financial year (EOFY 2023) is just around the corner. You’ve been busy on the tools, but now it’s time to sharpen your tax skills.
How to Maximize Best Tax Refund for Tradie and Subbie
The Stock Saga
Delve into the depths of your inventory and uncover any obsolete or slow-moving items. Writing off or discounting these products can help reduce your taxable income. While you’re at it, keep an eye out for stock take sales or bulk purchasing opportunities to stock up on items you’ll need for the coming year.
The Great Equipment Hunt
As EOFY approaches, consider investing in new equipment or assets for your business. It’s a perfect time to reflect on that shiny new tool you’ve had your eye on. By making the purchase before EOFY, you could claim an immediate deduction or depreciation, reducing your taxable income. Now that’s a win!
The Bad Debt Battle
Don your financial armor and assess your accounts receivable to identify any bad debts unlikely to be recovered. By writing off these debts before EOFY, you’ll emerge victorious with reduced taxable income.
The Repair and Maintenance Mission
If your business premises or equipment have seen better days and require repairs or maintenance, schedule these expenses before EOFY. These costs can be deductible and will help lower your taxable income. Plus, you’ll start the new financial year with everything in tip-top shape!
The Professional Fees and Subscriptions Strategy
Why not prepay professional fees, such as legal or accounting services, or business-related subscriptions before EOFY? Doing so can help you claim a deduction in the current year, and you’ll be prepared with the support you need for the year ahead.
The R&D Adventure
If your business is engaged in eligible research and development activities, it’s time to explore potential R&D tax incentives and deductions available in your jurisdiction. Make sure you have properly documented and substantiated your R&D expenses to maximize your claims. You might just uncover a hidden treasure!
The Depreciation Expedition
If you’ve recently purchased an asset, don’t forget to claim the depreciation expense. Investigate whether temporary expensing methods or instant asset write-off are available to you. It’s a tax-saving journey worth embarking on!
As EOFY approaches, remember to consult with EndureGo Tax for tailored advice based on your individual circumstances. We’ll ensure you comply with tax laws and regulations specific to your business and help you make the most of the available deductions and strategies.
Oh, and don’t forget to lodge your tax return on time to avoid penalties from the ATO – they’re not deductible, and nobody likes an unexpected surprise!