The Tax Office has revised its guidance on the taxing of profits made by certain professional firms. The professional businesses within its sights include, but are not limited to, firms operating in the accounting, architectural, engineering, financial services, legal and medical professions.
The concept of the “going concern” exemption for GST purposes can still cause confusion when businesses are sold, despite the fact this exemption has been in place for many years.
A “going concern” refers to an enterprise’s ability to continue trading, with the sale of that business generally eligible to be GST-free if the enterprise is deemed as such.
The Tax Office has re-released its business industry code (BIC) tool to help small businesses speed up their tax return lodgement.
The BIC is a five-digit number required for tax returns and schedules. Using the correct code helps businesses avoid delays by ensuring their return is lodged in the correct category. It is derived from the Australian and New Zealand Standard Industrial Classification (ANZSIC) codes.
Have you taken stock for private use? That’s ok! Here’s the values to use for 2014-15.
The Tax Office issues guidance every year for business owners on the value it will accept as estimates of the value of goods taken from trading stock for private use by taxpayers in certain industries.
The following table should be used to work out these values for the 2014-15 income year.
Since the announcement of Single Touch Payroll (STP) late in 2014, the government says it has been working closely with both software developers and businesses to help it understand the affects the initiative will have in the real world.
Feedback to date has informed government that the proposed start date of July 2016 will simply not be achievable, especially for small and medium sized businesses. There were also concerns regarding resulting cash flow issues.
Companies could be in line for random audits as soon as next year under advice being considered by the Tax Office.
The plan, proposed by Australia’s counterparts in the UK and US, is said to provide more credible estimates of revenue.
While it might be a tough topic to broach, it is inevitable that someday you will leave your business. You can’t know whether you’ll sell up, retire or leave due to health reasons, so is important that you prepare yourself for any eventuality.
In the recent Federal Budget the government announced a series of measures to assist small businesses, with one of these being an immediate write-off for depreciating assets that cost less than $20,000. This has now been written into law and applies from the 2015 Budget night (7.30pm, May 12) to June 30, 2017.
The Tax Office’s ongoing compliance efforts have some constant focus. One of these is the often flawed characterisation by businesses of an employee as a contractor.
The mischief from the Tax Office’s point of view is the avoidance of employer obligations relating to the Superannuation Guarantee (SG) and Pay As You Go (PAYG) withholding.
While technology can streamline business processes, it can also create major problems. Technology and working-life website, Lifehacker, has come up with what it says are 10 of the most common mistakes, in no particular order, that small businesses make in IT. Thankfully, it also suggests how to avoid them!