The year of 2020 has been devastating for the whole world due to the plight of Covid-19. Australia has faced a couple of hazardous incidents more in the form of drought and bushfires. So, as an Australian, you may miss out on planning your tax return during this crunch. A top-notch Tax Accountant Perth can provide you the best assistance in this regard. Besides, given below are some useful tips that will help you to accomplish your tax returns smoothly even during Covid-19.
- Seek Indispensable Assistance
It may happen that your business has been inflicted by Covid-19. Then the ATO can provide you assistance regarding your tax, super affairs, and reconstruction requirements. You can use bits of information from the official site of ATO. This way, you can complete your tax and super tax returns efficiently.
- Go for Short-cut Methods
The ATO has offered a special privilege to workers who are working from home as a result of Covid-19. This is in the form of a shortcut method where employees can claim 80 cents per hour. People who worked from home between 1 March, 2020 and June 2020 will get this facility. This way, they can get all their deductible costs compensated effectively.
- Maintain Faultless Tax Records
You must maintain impeccable records of all your tax returns for the last five years. Make sure, you are keeping them in a safe and secure place. Each of these documents has to be in English. If they aren’t in English, ascertain that their translated versions of English are attached along with. To make the process even more straightforward you can use the evaluation tool from ATO’s official site.
- Incorporate Comprehensive Details of Your Income
Staying extra careful, especially during the plight of Covid-19 has become imperative for all of us. So, when doing your tax return you should include comprehensive details regarding your income for the present year of 2020. Some of the things which are included in this list can be considered below.
- Your bank interests
- The total income you have earned from your business
- The payments which you have received from Center-link in total.
- The remuneration which you have earned altogether for this year.
- Other income related details if any.
You can create a dossier of these income details quickly and efficiently. To attain this objective successfully, you must appoint a competent Tax Return Consultant in Perth as soon as possible.
- Optimise Small Business Concessions
As the owner of a small business, you can easily get reasonable exemptions in your tax bill. You will get this privilege during Covid-19 only if qualify for certain concessions. These include instant reductions in prepaid costs and asset write-off etc. Besides, you can save your precious time optimally as well while assessing the value of your trading stock. You can resort to this approach as a way more feasible option rather than conducting a stocktake.
- Invariably Consider JobKeeper Payments
JobKeeper Payments are quite similar to the emolument which you receive from your employer. It can be termed as an allowance wage or salary according to your specific circumstances. Conversely, have you received your JobKeeper Payments as a sole trader? If yes, then include it in your tax return in the form of business income. Simultaneously, you may have received your JobKeeper Payments from a trust or company as your trading partner.
The strategy to opt for
Then, you must not include it in your pertinent tax return as your legitimate source of income. Instead, you should present it to the Australian Tax Office as a significant part of your business income. The ATO has outlined a range of criteria which every Australian employer and their employees must comply with. By doing so, they will become lawfully eligible for the JobKeeper Payments.
- Adhere to The Three Golden Principles
You can easily claim reasonable exemptions against most of the costs of your small business. Before that do resort to the three golden rules to make the process easy and simple for you. This way, you can claim only those deductions which you are eligible for. Each of these three golden rules can be considered below.
- Possession of adequate records to prove how even a single expense forms an indispensable part of your business.
- It may be the case that a certain cost has been spent both for personal use and your business. Then, you can only claim a deduction only against that portion which has been used for your business.
- The cost against which you are claiming a deduction must be used for your business. Instead, it shall no way be used for personal reasons.
So, are you also looking forward to lodging your Business Tax Return even during the crisis of Covid-19? To do that optimize some of the tips and ideas are given above. This will allow you to lodge your Company Tax Return in the best possible manner.