Jeremy Tauri: Making tax season a bit less taxing

Jeremy Tauri

With the end of the tax year just around the corner, it's time to get end of year stuff together for your accountant or tax agent to prepare your tax accounts.

If you haven't seen your accountant yet, here are some helpful hints.

Don't despair — do the questionnaire. Your accountant usually will send you an end-of-year questionnaire to prompt you for information and copies of documents. They're designed to help collect information to minimise tax.

Make an appointment and go through the questionnaire if you don't understand it. Incomplete, inadequate information could also mean more fees and delays.

Do your stocktake — if your stock is over $10,000 at cost, you'll need to do a stocktake. If it's under 10,000 you don't need to. You'll pay tax on this number so if you can ditch or sell old stock you'll save some tax.

Review your assets list if you suspect a few of the items no longer work or exist. You could be surprised at what lurks on the schedule. Assets you purchase under $500 can be written off.

Bad debts are bad for business but if you write bad debts off before March 31, you'll save some tax. It may also improve your mood not to see them.

If you're paying out annual leave 63 days after March 31, 2018 to your staff you can claim them in the 2018 financial statements.A tax deduction is a bonus after balance date.

Bonuses paid may also qualify but the commitment needs to be made to do this before year-end. Redundancy payments won't. Advice on your specific situation maybe required here.

Contract work is becoming more popular. If you have income or a contract that spans past balance date into the new financial year check to see which year the income falls into. There's some fact-checking required here so if you think this is relevant check with a professional.

Jeremy Tauri is an associate at Plus Chartered Accountants.