Some small business owners and employees neglect to plan for their taxes and end up missing tax planning opportunities. By having a thorough and tailored tax strategy and a commitment to its implementation you will notice a reduction in the tax you pay each year. The taxation system can be complex but it can be navigated to ensure you never pay more tax than necessary.
Don't get caught out!! Be proactive your accountant can help you with setting strategies which help keep your taxes under control and allow you to better grow your business and increase personal investments without having any unnecessary tax burdens.
Some of the following strategies are often considered during the tax planning process.
- Bring forward tax deductions into the current financial year
- Purchasing Plant & Equipment. If finance is required should it be a Lease or Chattel Mortgage?
- Do debtors exist or have they "gone bad
- Stock Take at 30 June â€" is any stock obsolete or has its value changed?
- Setting up Trusts, Company's, Partnerships etc
- Motor Vehicle â€" what is the largest claim possible
- Salary Sacrificing
- Self Manage your Superannuation
- Negative Gearing investments
- Use of Capital Gains Tax Discounts and Exemptions including Small Business Relief
- Use of farm management deposits for farmers
These are just a few examples of some of the tax planning strategies used by businesses and individuals. With the right knowledge and a good plan you will avoid overpaying Taxes whilst remaining on the right side of the law. Paul Hogan once confused tax planning with tax avoidance don't let this be you.
Don't bury your head in the sand, talk to your Accountant.