As the end of this financial year draws ever closer, it’s important to start thinking about how to minimise the amount of tax that you end up paying. It is always a good idea to check with the ATO or a tax professional for the most up-to-date information on tax deductions and obligations, but in the meantime, here are 8 great tips to help you on your way.
1. Store all receipts correctly
Physical receipts kept in a specific box are fine, but why not go digital to fully safeguard yourself? By scanning each of them as you go and storing them on the cloud, you’ll always be able to access them easily even if the box is damaged or goes missing.
2. Understand your deductions
Working from home can bring with it a lot of benefits, with just one being a range of different potential deductions. Do plenty of research to find out which you can claim for example the ATO sole trader deductions page.
3. Set money aside for your tax payment
After you’ve lodged your tax return and you eventually receive the statement showing how much is owing, it’s always great for your peace of mind to know that you’ve already set aside roughly how much you owe.
4. Switch to PAYG
Provided you have an ABN, you can set up what’s known as Pay-As-You-Go (PAYG) tax instalments throughout the year, either monthly or quarterly. This can help to reduce the sting of one large payment at the end of the financial year.
5. Contribute to your super
As a business owner, sole trader or freelancer, you don’t have an employer making frequent contributions to your superannuation account on your behalf. It’s up to you to think about your retirement and add to it yourself - and contributions may be tax deductible, too!
6. Stay vigilant
Instead of waiting until the very last minute, it’s much better to keep on top of your expenses and deductions throughout the financial year to avoid a mad scramble.
7. Speak with an expert
To ensure you’re putting your best foot forward at tax time, it’s important to get assistance from someone who has extensive experience helping others in your situation. Find a quality accountant and allow them to prepare everything for you.
8. Minimise your taxable income by expanding your business assets
For anyone who’s been thinking about getting a new commercial vehicle or some work-related equipment to increase production, it can be a great way to reduce your overall taxable income - as long as the Government’s temporary full expensing scheme applies to you! Your accountant will be able to determine if it does, and if so it might be the right time to grow your business.
Simple, straightforward financing for freelancers & sole traders
Unsure whether it’s possible for you to get approved for car financing as a freelancer or sole trader? At Stratton Finance, we have worked with countless people in your position to find a financing deal that works.
So get in touch with our team today to discover what we can do for you! You can do so either by calling us on 1300 787 288 or messaging us online.