{"id":40740,"date":"2023-10-20T15:09:44","date_gmt":"2023-10-20T15:09:44","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/the-big-mistakes-small-businesses-should-avoid-when-doing-their-taxes-startupsmart\/"},"modified":"2023-10-20T15:09:44","modified_gmt":"2023-10-20T15:09:44","slug":"the-big-mistakes-small-businesses-should-avoid-when-doing-their-taxes-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/the-big-mistakes-small-businesses-should-avoid-when-doing-their-taxes-startupsmart\/","title":{"rendered":"The big mistakes small businesses should avoid when doing their taxes – StartupSmart"},"content":{"rendered":"
With June 30 fast approaching, we have outlined the mistakes that small businesses tend to make so you can avoid them this year.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
One item that always gets forgotten is super contributions. Super is payable 28 days after the end of the quarter. However, to claim a tax deduction for the super contribution you have to have made the contribution before June 30. Not paying super by the due date will also lead to a penalty imposed by the ATO.<\/p>\n
\u00a0<\/p>\n
Be aware of the concessional contributions cap of $25,000.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
If you have slow-moving stock which is unlikely to sell, then the best option is to bite the bullet and physically write it off prior to June 30 to obtain a tax deduction. For the remaining stock on hand you have the choice of valuing it at actual cost, replacement cost or market selling price. The closing value of trading stock effectively forms part of assessable income, so a lower value will result in a deferral of income and therefore tax.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
Businesses always make the mistake of being late with issuing group certificates to staff and reporting the correct figures on the group certificate. You are required to issue your payment summaries to your employees by July 14 and to the ATO by August 14.<\/p>\n
\u00a0<\/p>\n
Do not report your 9% employer contributions under the reportable contributions section, only report any of the following in that section.<\/p>\n
\u00a0<\/p>\n
Reportable employer superannuation contributions are:<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
This is an area all individuals, companies and contractors should be wary of. In short, if you receive more the 80% or more of your income from one client you will be caught under the PSI rules. These rules are extensive and restrict certain expenses along with how you deal with your profit.<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n