Don’t let an unexpected tax bill spoil Christmas.
Entertainment is the most common type of FBT we see.
(It could also include providing a company car or paying personal bills)
What is considered entertainment? It includes events and/or gifts (at any time of year)
Hackers are targeting small business inboxes and changing bank details on invoices you send out to your customers. To minimise risk, we recommend adding text to your invoice email and/or invoice template.
We’d hate for the wrong people to get your money!
Thinking about rewarding staff with a bonus?
Don’t forget super is likely to apply and you’ll need to use the schedule 5 tax scale to work out the tax to withhold.
If you don’t process and report the payment properly – you can’t claim a tax deduction.
Watch out for the Fringe Benefits Tax (FBT) Grinch ruining the fun for everyone this Christmas!
Read on to find out about nice festive fun that may attract naughty surprise taxes.
Don’t get stuck (with extra tax)!
Before setting your elves to work, check out the rules, so you don’t end up with any surprise tax to pay!
Talking about money is awkward!
Its probably more unpleasant if you have to tell suppliers and employees you don’t have the money to pay them.
If you can’t pay your bills on time, you may be insolvent and that can lead to harsh penalties for the directors. (penalties up to $200,000)
Speak to us or your expert as soon as you think you might be in money trouble – you’ll have more options and less stress if you start the conversation early. Lets chat!
What does the EOFY timeline look like?
You need to get your accounts up to date now and chat to your accountant about tax planning
Keep calm, its only End Of Financial Year!
The Fair Work Commission has decided to increase minimum wages by 3.75%, to $915.90 per week or $24.10 per hour, for the first full pay period after 1st July 2024.
Updated awards will not be published until 1st July – so add an item to your TO DO list for later.
Don’t go making crazy purchases without reviewing where you are at, and speaking to your tax accountant.
EOFY deals are great for salespeople trying to meet their commission targets, they might not really benefit you and your business.
Review your position
You can’t make sensible last minute decisions without data.
Let’s get your Xero file (or insert other software here) up to date, process everything still outstanding so you know exactly where you stand. There is not a lot of benefit spending more money, if you are already in a loss position. If you are in a surprise profit situation, it would be good to know before its too late to take action.
Speak to your expert and get customised advice about your situation.
How do you show your team that you appreciate them?
If you’re thinking of conveying recognition with a gift – keep the fun business tax (or Fringe Benefits Tax if you want to use the technical term) in mind.
Employee of the month awards and a public pat on the back can also be powerful (and cost effective).
