SMALL BUSINESS ACCOUNTANT – This service helps small businesses to get maximum benefits from their tax returns
Karis Tax understands that not all small and medium businesses have resources to manage their business accounting and bookkeeping needs inhouse. If this is the case for you why not take up this service that will help small businesses to get maximum benefits from their tax returns.
You will have hit the money load at Karis Tax with their experienced, dedicated and trusted tax accountants. Timely expert tax advice is always at hand to keep your financial records up to date, and ensure your business meets the ATO tax requirements as well as real time assistance to ensure perfect documents and statements are delivered.
Are you a sole trader, it can sometimes be overwhelming, a total hassle, a little bit scary and even a turn off to being a sole trader not knowing all the various risks and penalties associated with tax returns.
Allow Karis Tax to take over this element for you so that you can focus solely on where your talents lie in your business.
If you find yourself in the predicament of having overdue tax lodgements, It is never too late to allow Karis Tax to save the day and remove the burden of late lodging and penalties in a stress and hassle free, precise and effective manner.
They have a proven track record of saving many clients from getting huge ATO penalties, negotiating fees and penalties down which means you can have peace of mind knowing Karis Tax has your back.
If you are looking to offload that crazy busy time of year then look no further then Karis Tax, not only can they prepare and lodge your tax returns for you, they can also provide assistance with:
· Preparation of financial statements
· Rental property income and deductions
· Share trading income and deductions
· Crypto currency bought and sold
· Negative gearing advice
· Fringe benefits Tax
· Capital Gains Tax
Along with the Business Services advice you can also engage Karis Tax in their Business Tax consultants where practical advice is always on offer.
This service includes:
· Business set up advice
· How to structure your business and protect your assets
· Small business costs and profitability
· Financial Operations
· Management consultancy
· Small business company secretarial service
If you are looking for insightful and practical advice that will improve your business and increase profitability then engage Karis Tax in their Business consultation.
Their thoughtful attention to detail is a standout service as they go above and beyond to understand your operations in your business and tailor make solutions that are specific to your company, then take a proactive approach to advise you on the most cost effective way to operate your business, which will in turn save you a lot of money.
Their business services include:
· Applications for GST, ABN, PAYG registrations
· Business Name registrations and renewals
· Changing existing business structures into new entities
· Establishment of personalized companies, trusts or superannuation funds
· Preparation of budgets and cash flow projections
· Income tax planning and tax minimisation strategies
· Advice and assistance with compulsory superannuation
· Advice and assistance and apply for WOrkcover insurance
· Assistance in applying for public Liability insurance
Do you want to minimize your cash flow? Earn more revenue and Focus on growing your business? Then I highly recommend investing in bookkeeping services which in turn will reduce those mounting accounting fees. By arranging for a bookkeeper to go through your accounts; you will be able to identify and fix issues BEFORE they become a serious problem for your business that does require an accountant.
The advantage of Karis Tax is that you can select whether you would like them to come to you or if you would prefer to visit them;
Onsite Bookkeeping Services: An unbeatable total time and cost saver as everything is handled virtually.
Offsite Bookkeeping Services : Easy peasy, drop off your paperwork and allow everything to be handled at your convenience.
Whichever service you opt for, you will be provided with:
· Regular Financial reports to follow your business perform
· Assistance with MYOB, QuickBooks Reckon and Xero setup and processing,
· Assistance with GST issues and lodgements
· Completion and lodgement of BAS
· Completion and lodgement of IAS
If you’re looking for extra time to grow your business and focus on your family then have Karis Tax take over and manage your books .
Does your employer make you do work from home? Are you eager to know the expenses you can claim on this year’s tax? Here, you will get to know a complete guide about home office expenses.
If you are wondering whether you can claim your home office expenses or not, then the answer will be yes. But, it is only possible if your home is not a business place, you may be eligible to claim for running expenses only. These expenses can be lighting, telephone, electricity consumption, internet bill, etc.
In some situations, when you perform some of your work duties at home, you may be eligible to claim a deduction for home office expenses. ATO (Australian Taxation Office) allows a $0.52/hour deduction for the time you spend performing your office duties at home. This claim covers the charges of heating, lighting, cooling, desk, and chair.
You can claim for other home office expenses separately. These include stationery, phone, internet, computer/laptop, filing cabinets, and others. Also, the private or domestic expenses connected with your home are not allowed to claim deductions for tax purposes.
As per the general rule, the area of your home used for income-producing activities is termed a ‘place of business’. So, in some cases, the partial deduction may be allowed to rent, mortgage interest, water rates, house insurance, etc.
These factors can determine whether your area of work at home is set to be characterised as a ‘place of business’ or not.
- The area is undoubtedly recognised as a place of business
- The area is not appropriate for private or domestic purposes, even if it is associated with home
- The area is used exclusively for carrying work duties
- The area is used frequently for client/customer visits.
It is true that many times, we need to open our home computer or laptop to check emails or we use our home phone to make some calls to the clients or customers from time to time. But, if these activities are a regular occurrence for you, then the best idea is to set a specific area in your home to work. This decision will not only help in keeping focused on your work but also provide some bonus to you.
This is what we are talking about here. You can claim deductions for your home office expenses. Always keep in mind that valuable tax deductions cover the expenses associated with working from home.
What home office expenses can you claim?
If you are working from home, you have the right to claim a deduction for expenses you incur. These expenses are:
- Electricity expenses include heating, cooling, and lighting of the area you are using for working at home or for running tools, equipment, or systems you are using for work.
- Cleaning cost of the area that you are using dedicatedly for work
- Phone and internet expenses
- Additional computer items, such as printer paper, ink, and stationary
- Use of home office equipment such as computers, laptops, printers, phones, furniture, etc. Here, you can claim the full cost of these products for up to $300 or claim for depreciation for products more than $300.
What home office expenses you cannot claim?
If you are working from home, it does not mean you can claim for all expenses you hold while performing your work duties at home. You cannot claim for:
- The cost of coffee, tea, milk, and other household items that your employer may provide you when you are at work
- The cost related to your children and their education, can be the expense of their online learning or buying equipment, like iPads, desks, and others
- The products or items that you have been reimbursed for already, which means the expenses that are paid directly by the employer are allowed to claim
- The time that you have spent not working on your job duties, such as time spent on teaching your children, lunch break, and all
- Occupancy expenses, such as rent, mortgage interest, rates, etc.
How to claim expenses?
The running expenses can be claimed in two options:
- At the rate of 52 cents per hour
- The amount of total expense you experienced through an established pattern of use
52 cents per hour
You have the right to claim 52 cents per hour for working from home towards the home office running expenses. These expenses will include all expenses that are listed above. For this, you have to calculate the standard working hours at home for four weeks and then multiply this number of hours by 13 to get the annual working hours. It is so because there are 52 weeks in a year, so when you divide it by 4, the answer comes out to be 13.
Suppose you have calculated an average four week period of hours for working from home is 25. Now, multiply 25 with 13; you will get 325 hours over the income year when you work from home. Now, you have to claim 52 cents per hour working from home; it means you will claim $169 towards your home office running expenses.
You cannot claim a deduction for expenses if it does not involve an additional cost. For example, you are working from home in the living room where your family members watch the television. Due to this reason, it is important to get a dedicated area in your home if you want to claim home office expenses.
Pattern of use
To claim the actual costs involved in working from home, you have to keep a record that displays your pattern of use. ATO gives importance to a diary that contains the information for the day and time you have used for home office work. Make sure to keep your dairy for at least four weeks in a financial year. Then, add all the details of the associated expenses to claim some portion, such as lighting, heating, furniture, cleaning, etc.
This method is usually used for making bigger claims than the 52 cents per hour method. But, the pattern of use method is more complicated as everything is managed with date and time. You can consult your tax agent to determine the best method for you.
If you are looking forward to claiming home office expenses, you must take the help of an expert for the right method of keeping records. Also, he/she will guide you for the eligible deductions and maximise your refund.
Whether you have purchased an investment property or you are looking to buy one, it is important to understand the tax concerns, including the deductions you can claim for investment property expenses. Here, in this simple guide, you get to know about what you can claim for a tax deduction and how they affect your text return.
When it comes to the tax benefits, an Investment Property Accounting is one of the highly tempting propositions for enjoying financial freedom. Being a landlord, you have various ways to minimise your annual tax bill, where these deductions are usually the difference between the negative and positive cash flow.
You must also know that you can claim deductions for your investment property tax only during the periods when your property was either used for business purposes. To get these deductions, you must have records to prove these expenses.
What does ATO want?
You can claim tax deductions through ATO (Australian Tax Office), so it is best to understand what exactly ATO wants from you. ATO says that if you have rented out your property, you must:
- Keep records of everything from the beginning
- Know what investment property expenses you can claim as deductions
- Know whether you have to pay tax instalments all through the year or not
- Declare all income from rented property in your tax return
- Consider the capital gains tax implication if the property is sold with Property Investment Accountant
What expenses can be claimed as deductions?
Here is the list of investment property tax return expenses that you can claim for tax deductions.
Rental advertising costs
You need to use a variety of advertisement methods to find tenants. If you use an online property platform, print brochures, media and signs, these advertising expenses can be claimed in the same year in which you have paid for them.
You are eligible to claim the interest charged on loan for your investment property. You can also claim any bank fees for servicing that loan with the consultation of property tax accountant.
Council rates can be deducted in the year in which they are paid. But, you can claim council rates only for the periods when your house was rented. You can also claim interest repayments, but you cannot claim repayments on your loan’s principal.
As long as you rent your investment property, you can claim a deduction for land tax. But, this concept differs from one state to another as well as the timing when you claim the cost. The best idea is to get a Investment Property Tax Advise to make sure that you will claim the accurate amount in the right year.
If your investment property has strata title, you can claim a deduction for strata fees. But, if these fees include maintenance and garden expenses, you have no right to claim these expenses separately.
You can claim a deduction on the building depreciation. But, it completely depends on when your investment property was built. If your investment property was built before 16 September 1987, you would not be able to claim building depreciation on the original construction costs. If it was built after this date, you can claim depreciation on the cost of 2.5% annually for 40 years. It means if a building was built in 2000, you can claim a depreciation deduction until 2040.
Sometimes, when a landlord rents out his property, he usually installs dishwashers, washing machines, cabinets, air conditioners and other assets. So, just like building depreciation, you can also claim appliance depreciation over several years. But, it can only be possible on assets when they meet certain criteria. Like, you can claim deductions on brand new and second assets in your investment property if they are bought before 7:30 on 9th May 2017.
Repairs and maintenance
You can also claim a deduction for repair if it is related directly to wear and tear. Suppose you have replaced a few broken roof tiles after a storm or repair an appliance. You can claim to hire a professional to repair these jobs. But, if you replace an appliance, it will be claimed as a depreciation deduction.
Pest control deduction can be claimed depending on who paid for this service, a tenant or a landlord. You can claim an immediate deduction for the cost of hiring a pest control professional.
Garden and maintenance
You can also claim the maintenance and replacement of plants as an immediate deduction. But, you are not allowed to claim the costs of new plants or other changes that can add more value to your investment property.
Being a landlord, you have the right to claim the cost of insuring your investment property. For this, you require referring to the quarterly statements for the exact amount, or you can request an annual breakdown from your insurer.
It is difficult to manage everything with property investments, so many landlords prefer having an accountant who keeps records of all transactions. You can claim deductions for the expenses incurred for managing your rental accounts in the same year. But, you cannot claim the cost of preparing your personal tax return.
You can claim the fees or commission paid to real estate agents who have found tenants, collect rents and maintain your rentals.
Stationery and phone costs
ATO allows you to claim deductions for stationery, internet, phone contracts and the electricity consumption. You can only claim for a certain portion of the expenses that are related to your investment property.
You cannot claim the cost of travelling to inspect your investment property or to carry out repairs. This rule is applied to landlords who have a business of property investing.
You can claim a deduction for the cost of legal advice and documents that are related to investment property. Suppose you are evicting your tenants or you are going to court for long unpaid rent. You are eligible to claim the cost of doing these activities and the cost of preparing all legal documents for these activities.
Capital gains tax discount
You have to pay Investment Property tax on the profit when you make a capital gain on the sale of investment property. If you buy or sell the property within one year, it will increase the income tax you pay.
If you hold the property for more than 12 months before selling it, you can claim for a capital gains discount of 50%.
You must have the proper information about investment property expenses you can claim. Taking professional advice is always profitable before acting.
When you operate your business as a sole trader, you as an individual running a business are solely responsible for managing everything – from operating business activities to company taxes. This includes charging sales tax, lodging tax returns as well as claiming tax credits. Therefore, it is very important to understand everything about taxes you are accountable for.
As a sole trader, you are legally responsible for all business activities and for paying employees’ salaries. So, you must lodge a tax return even if you have an income below the tax-free threshold. In your tax return, you need to mention:
- Your business income, even if it is less than the business deductions you can claim
- Other incomes, such as salaries, wages, dividends, rental income, and others
There is no need to work on the amount of tax you are accountable to pay. If you have paid PAYG instalments during the financial year, this amount will automatically get credited to you in your assessment.
Understanding sole trader tax obligations
If you are a sole trader, you are required to pay taxes just like other business owners with Sole Trader Tax Accountant. The rate of tax you have to pay is the same as a personal income tax return. Now, what amount you have to pay depends completely on how much you earn every year. This amount is worked out by ATO (Australian Taxation Office).
No matter how much amount you earn as a sole trader, you must have TFN (Tax File Number) and ABN (Australian Business Number). Also, you need to submit a yearly income tax return. Suppose you are a sole trader who earns $75,000 or more income every year. In that case, you must also register for GST (Goods and Services Tax) and also need to submit BAS (Business Activity Statement) – monthly or quarterly, whatever is convenient with the help of Sole Trader Accountant.
Sole trader tax return is a tax return that every sole trader in Australia has to pay. This type of tax is managed on an individual Sole Trader Tax Return accountant, where your business’s income is entered as an individual income.
The businesses above a certain threshold have to pay different taxes, as this accountant for sole trader is not uniform. Here, in the type of taxation, GST comes in.
GST (Goods and Services Tax)
If you earn more than $75,000 in a year, you require registering for the previously mentioned GST. This step will bring a great impact on your taxes. It is so because your sales may be qualified for taxation if your business falls under the GST category. It is recommended to maintain tax invoices for your sales so that you can consider GST credits and it will help in your tax return as well.
GST credits are the amount of GST, while the remaining amount of the purchase is claimed as a tax-deductible purchase only if this is made for work purpose. This, in turn, helps your business to get the highest possible tax return. But, keep in mind that this concept requires in-depth bookkeeping.
Now, here BAS comes into action. These statements should include a summarisation of your business activities for the period when every business purchase and sale is made. If you earn less than $75,000, then you will not need to consider yourself under the GST category.
Tips for sole proprietorships taxes
There can be tremendous stress when it comes to filing taxes. But, you must not need to be under pressure as you have worked hard for your business, and with the proper knowledge, you can easily get the best return possible. These tips can help you make everything easier and stress-free.
Assess for PSI
If you are mainly paid for your skills, expertise, or personal efforts, you can receive PSI (Personal Services Income). Whether you are a copywriter, legal advisor, or consultant, or doing a similar business, you are more likely to receive this type of income.
Some of your income may be PSI, while some are not. To figure out this, you require checking each job or contract. If the service you have provided is more than 50% as per your efforts, skills, or expertise, it comes under PSI.
Suppose you are running a business that sells products made by another individual or people; your income is not considered as PSI. But, if you are hired by a company where your products are made and sold, then it can be technically a PSI as it uses your skills, efforts, and expertise to make the product.
Never miss deductions
As a sole trader, you have the right to claim some types of business tax deductions for most of the expenses you have incurred running your business. But, they must be directly associated with your assessable income. These deductions can save thousands of dollars every year, especially when your business will grow to the next tax bracket.
Some of these deductions include business travel expenses, vehicle expenses, servicing or maintenance expenses of machinery, tools or premises, home office expenses, personal super contributions, bad debts or invoices that will not be paid, etc. It also includes other expenses, such as stationery, advertising, work uniforms, linked courses, etc.
Be a dedicated record keeper
If you want to make things simpler and easier for you, it is very important to keep detailed financial records all through the year. Make sure to keep records of sales, purchase, bank statements, expenses, and payments to employees or contractors.
For tax return, you have to show details of debtors, creditors, and current inventory. Also, make sure not to forget to mention purchases or sales as everything should be properly accounted for. You can either use a spreadsheet or accounting software to record each detail in a professional way.
Understand the basics
You have various ways to prepare and lodge your tax return. You can either choose to go for it online or via a registered tax agent or by filing the tax return form and then mail it. If the PSI rule applies to you, you have to fill in a separate form for the sole trader.
You may don’t know much about doing your taxes, but as it is a legal requirement, you must understand its basics to get through the essential steps and maximise your return.
Running a one-person business is not a walk in the park. You have to be aware of all the necessary concepts that can help your business grow. In the case of taxes, you can take the help of a professional to get the right guidance and get a stress-free tax session.