Tax time tips for small business

The Taxation Office is lending a helping hand to nearly four million small businesses to get their tax right this tax time.

Assistant Commissioner Peter Holt said the ATO understands that small businesses have a lot on their plate with the day-to-day running of their business.

“That’s why we’re focusing on addressing common issues we see when small businesses lodge their returns so that we can support them to get it right,” he said.

ATO focus areas

Top 3 issues for small businesses are:

1. Failing to report all of their income

2. Not having the necessary records to prove small business expenses claims

3. Claiming private expenses as business expenses

He said there are three golden rules to remember about claiming deductions.

“One, the expense must have been for your business not yourself. Two if you use something for business and private purposes, you can only claim the portion that is related to your business, and three, you need a record to prove it.”

This article was first published in The Fence magazine.

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