More and more people are trying to improve their work and life balance, which has led to a significant increase in home-based businesses starting up over the last few years. Business owners often ask, “What home expenses can I claim?” Unfortunately, this is a very open ended question with a multitude of factors that need to be considered. The Australian Taxation Office (ATO) has set the basic tests and requirements for claiming two types of house expenses for home-based businesses:
Tax time! The words are usually enough to send a shiver down the spine of most clients. Lodging your tax return is usually not a pleasurable experience and sometimes results in some nasty news at the end in the form of a tax bill.
Now is the time you can act to try and minimise any profits and reduce the taxes you pay, as well as get an estimate of your likely tax liability for 2015. Getting work done now can help give you an indication of your tax cash flow moving forward and whether there is a need to do some tax planning prior to 30 June. There are several things you can do to help minimise your taxes and if you leave this until after June 30, a lot of these measures cannot be done.