Christmas is now only 3 weeks away, so the time left before 2013 winds up is short, and of course so is the time left for gift shopping!
The countdown is also on for our new workshop series and business development programs. Beginning in January 2014 we will be explaining the Business Lifecycle Roadmap, and then going into detail on what it takes to run a successful business.
We will also explain topics such as those covered in How to Read Financial Statements and Where Did The Cash Go?, and discuss how you can use the tax system to legitimately help wealth creation.
Keep an eye out for the announcements of dates and times in the coming weeks, or call us to talk about how you can be involved.
We also take this opportunity to wish everyone a Merry Christmas and Happy New Year, and to stay safe over this holiday period. We also thank you all for allowing us to help you during the year, and look forward to the many exciting opportunities that await us all in the new year.
Festive Season and Fringe Benefits Tax
The Silly Season brings with it numerous Christmas parties and other celebrations, which may include providing a party for your business and your staff.
If this is the case, then you need to know your obligations in relation to Fringe Benefits Tax (FBT) which may apply to those expenses.
The Australian Taxation Office is hosting a free webinar which includes topics such as:
- when the provision of food, drink or recreation may be entertainment
- whether entertainment is subject to FBT or exempt from it
- the methods available for valuing entertainment fringe benefits
- common errors employers make relating to FBT and entertainment
- where to find more help and guidance
The webinar is being hosted on 12 December from 2pm – 3pm, so register now to secure your place.
More information on FBT and entertainment can be found on the ATO website
Starting and running a franchise
A popular and easy way to get established in a business is to buy into a franchise, either through an established business or by setting up a new franchise area from scratch.
The benefits of a franchise include that there is a ready made business system and process manual, branding and marketing is co-ordinated through a central point as well as locally, and generally there will be a support network of the franchisor and other franchisees to fall back upon for assistance.
As either the franchisor, or the franchisee, the tax treatment of various payments and receipts will vary depending on your position in the franchise agreement.
For example, the initial franchisee fee paid to enter the franchise will be income (and hence taxable) to the franchisor, and a capital payment (and hence not deductible but part of the cost base) for the franchisee.
There are also a range of other financial and legal issues that must be dealt with when entering the franchise agreement, so it is important to get the proper advice before signing any legal documents.
If you are thinking of entering a franchise, or have an idea that you would like to franchise to others, contact us at Value Beyond to discuss your options and
More detail on the tax treatment of being involved in franchise can be found on the ATO website.
Centrelink clients must lodge by 30 June 2014
Following changes in the Budget, taxpayers intending to lodge a lump sum Family Tax Benefit, Child Care Benefit or Single Income Family Supplement claim for the 2011-2012 and 2012-2013 financial year must lodge their claim by 30 June 2014 to qualify.
To be entitled to the claim, the income tax returns for the 2012-2013 financial year must also be lodged by 30 June 2014.
If an income tax return does not need to be lodged then Centrelink must also be notified of this by 30 June 2014.
Extensions to the one year lodgement period may be granted for families in unusual and exceptional circumstances.
Further information can be found through the Department of Human Services.