Newsletter Archives - Page 3 of 13

The Value Add – June 2017

Ian Wood · June 2, 2017 ·

The dust has settled on the Federal Budget for 2017-2018, and now the implementation of the changes is coming through. The big changes coming from 1 July 2017 are the budget announcements from last year’s budget relating to superannuation. If you’re not aware of the changes, the major announcements to take note of include:

$1.6 million cap on tax free pension balances – this will affect anyone taking a pension who has a total balance of more than $1.6 million
Reduction of concessional contributions cap to $25,000 from 1 July 2017 – anyone salary sacrificing should review their situation and speak with their payroll office to ensure they don’t exceed the $25,000 cap

The other big announcement is the extension of the immediate write-off for small businesses with turnover under $10 million who purchase assets costing less than $20,000 ($21,999 or less including GST if you are registered for GST). If you are unsure of where you sit in relation to your tax position for the 2017 financial year, contact us to make a time to go over the numbers and work out the best options before 30 June.

Super Guarantee Health Check

The payment of employee’s superannuation is a major focus of both the ATO and Fairwork Australia at the moment, with talk of restructuring reporting and payment obligations in a bid to protect employee’s entitlements to superannuation. Given that late payment of your superannuation guarantee means the contributions are not tax deductible, there is great incentive for employers to understand their obligations and meet the deadlines. The key requirements to pay super are:

Super is payable where an employee earns more than $450 per month
Super is payable at 9.5% of ordinary times earnings – in most cases this will be all wages, set allowances and even bonuses that are pre-agreed with the employee
Super is payable within 28 days of the end of each quarter i.e. 28 July, 28 October, 28 January and 28 April
Super is tax deductible to the employer at the time that the contribution is paid, not when it is incurred
Directors of companies can be held personally liable for any underpayment of employer superannuation entitlements

The ATO has a number of resources available to assist employers, including a super guarantee health check.

If you have any uncertainty as to what you are supposed to be doing or how to make sure you are meeting your obligations, contact us at Value Beyond and learn about the systems and tools which we use to help make superannuation an easy to manage part of your business and cashflow.

Levelling the Playing Field For Small Business

Government agencies are working to level the playing field for small business, and this includes current and future initiatives.

A free interactive webinar is being held, with the agencies who are participating including ATO, ACC, ASIC, and Fairwork Ombudsman.

To register for the webinar click here.

How Your Next Property Sale Could Cost You 12.5%?

In the recent Federal Budget, the government announced an extension to the Foreign Resident CGT Withholding tax.

The existing rules require anyone selling a property to have a tax clearance certificate to verify they are an Australian resident for tax purposes.

If that certificate is not obtained, then 10% is withheld from the sale price for any property sale over $2 million.

From 1 July 2017, the withholding will increase to 12.5% and the threshold will drop to $750,000. Therefore anyone selling a property for $750,000 or more will be required to either have a tax clearance certificate, or face having 12.5% of the sale price withheld and paid to the ATO.

How do I avoid losing 12.5% of my property sale?

The easiest way is to contact Value Beyond (or have your solicitor contact us) and let us know that you need a tax clearance certificate.

These certificates can be applied for with the ATO online, and the certificate is then sent via email, which makes it more efficient to get the relevant information to your solicitor to ensure that no amount is withheld from your property sale.

If you have any questions about how this withholding operates or how it might affect your next property sale, contact us at Value Beyond to discuss.

Simpler BAS Is Coming Soon

From 1 July 2017, Simpler BAS will be the default GST reporting method for small businesses with a GST turnover of less than $10 million. This new simpler BAS will only require reporting of:

Total sales
GST on sales
GST on purchases

The ATO will automatically transition eligible small businesses to this simpler BAS reporting method from 1 July 2017.

If you are unsure of what this change may mean to you, or how it affects your records keeping processes, contact us at Value Beyond to review your systems and processes.

This review can also be a good opportunity to determine whether there are better ways to save you time and effort in your record and account keeping, and put more time into your business.

Upcoming Dates

5 June 2017

Lodgement of income tax returns that are not required earlier and are non-taxable or have a credit assessment in the latest year lodged

21 June 2017

Lodgement and payment of monthly May 2017 activity statements

25 June 2017

Lodgement of 2017 Fringe Benefits Tax Annual Return for tax agents

30 June 2017

Superannuation guarantee contributions must be paid by this date to qualify for a tax deduction in the 2016- 2017 financial year

14 July 2017

Last day to provide 2017 PAYG Payment Summaries to employees

21 July 2017

Lodgement and payment of monthly June 2017 activity statements

28 July 2017

Deadline for paying superannuation guarantee contributions on behalf of employees for the June 2017 quarter

The Value Add – May 2017

Ian Wood · May 4, 2017 ·

With the Federal Budget for 2017-2018 less than a week away, there have been numerous proposals of policy which have been strategically released to understand the public’s reaction.

As is always the case though, we’ll be waiting to see the detail before we cast judgement on the merits of any tax changes, and to see what benefits there might be in any new rules.

Keep an eye out for our yearly Budget special edition of the Value Add in your inbox first thing Wednesday 10 May.

Also, listen to 612 ABC from 8:30am, where Ian Wood will be talking with Steve Austin about the Budget and its impact for taxpayers.

The Value Add - May 2017

Floods and natural disasters

Have you been affected by the recent weather events, including Cyclone Debbie and the ensuing flooding? There is various government assistance available to those affected. This includes:

Natural Disaster Relief and Recovery Arrangements which can provide financial assistance.
Australia Taxation Office – the ATO is allowing deferral of lodgement and payment of various taxation obligations where taxpayers have been affected by natural disaster. Check their website for more details.
QLD Disaster Management Services offer a range of assistance to those affected, including concessional loans to small business, freight subsidies to primary producers, and other assistance.
Talk to your bank about what they can do to help you through difficulties, such as suspension of loan repayments and fee waivers

If you are needing any help, contact us at Value Beyond to find the right assistance for you.

Cuts To The Company Tax Rate

Following proposals in last year’s Federal Budget, parliament has finally passed legislation which will reduce the company tax rate for small businesses to 27.5% for the 2016/2017 financial year.

The threshold for small business has also been raised from $2 million group turnover, to $10 million.

This increased threshold also applies for the purposes of claiming deductions for immediate write off of assets costing less than $20,000 (GST exclusive). The tax cuts will then apply to entities with turnover under $50 million from the 2018/2019 financial year.

How can I take advantage of this change?

Firstly, to benefit from the 27.5% tax rate, you must be operating a small business in a company.

If you are operating a small business as an individual, or are a beneficiary of a trust that runs a small business, there is a tax offset available. This tax offset is capped at $1,000.

The second key aspect is that you must be operating a business in that company.

What classifies as a business? There is some guidance from the ATO that suggests that even if a company had a rental property that was deriving passive rental income, this could be treated as the company being the business of operating a rental property, as there is an assumption that companies are generally in business by the nature of their existence.

You must also meet the turnover threshold tests. To fall under the $10 million turnover, the entity and all grouped entities total turnover must be less than $10 million. This may require a review to determine what entities will form part of the group, to then be able to work out the group turnover and ensure it falls under the threshold.

Further to the tax rate cut, there are consequential changes to the way that dividends from those companies are franked, and the level to which they are franked in each given year.

If you have any questions, or want to know more about how the new rules will affect you and your tax position, contact us at Value Beyond to arrange a tax review.

How Will Higher Interest Rates Impact You?

While the Reserve Bank has left interest rates at a record low 1.5% cash rate, a number of banks have raised their interest rates on a number of their lending products.

Banks have also tightened their lending criteria when assessing loans, and are currently assessing serviceability of loans at 7.5% to 8.0% when deciding whether to lend to customers.

What does this mean for me and my finances?

Given that banks are raising rates and determining whether loans can be paid back at higher interest rates indicates that they believe rates will rise in the future. This is probably not too surprising given that we have had record low rates for quite a while now.

The lesson in this is to look at your debts and your income levels and work out if you can afford to keep making repayments if interest rates were to double. This is a good stress test to take stock of your financial position and your ability to absorb interest rate rises.

Once this exercise has been completed, then you have a number of options to try and improve your position, including:

pay down more debt now while interest rates are lower – this is a good strategy in any event, as the higher the repayments you make, the more principal you are paying off. This provides you more equity should you need to borrow again in the future
Pay down the highest interest rate debt, and non-deductible debt – it is a no-brainer: the more interest you save, the more money you will have to pay down principal and to spend in your household budget
Get advice on whether locking in fixed rates is a good idea – while some rates have already risen, it might be worth getting advice on whether locking in fixed rates will help with certainty in your household budget should rates go on the rise in the near future
Earn more income – another no brainer! If you make more money, this gives you the ability to pay down debt faster, and get yourself into a better financial position much more easily.

If you have any concerns about your financial position, or you are looking for a review or second opinion on your loans, contact us at Value Beyond to put you in touch with the professionals to help you.

ATO To Report Tax Debts To Credit Agencies

From 1 July 2017, the government proposes to have legislation in place that allows the Australian Taxation Office to disclose tax debt information to credit reporting bureaus. The proposed criteria for debts that will be reported includes:

the balance is $10,000 or higher
the amount has been outstanding for more than 90 days
the taxpayer has an ABN
the taxpayer is not in a payment plan with the ATO; and
the taxpayer is not in formal dispute with the ATO

While this is only a proposal and no legislation has been introduced into parliament, it does raise a number of questions as to how it might work in practice and what the impact might be for those whose tax debt is reported.

The key to avoid this issue, remains as always:

pay your tax debts – this is a no brainer, the sooner they are paid off, the easier it will be on your finances
communicate with the ATO – if you don’t talk to the ATO, they can only assume you are avoiding your obligations and they will then take further action to recover the debt
arrange a payment plan where possible – this gives you an extension on paying the debt so recovery action isn’t taken, plus it allows you to stretch the payment terms over a longer period

Of course, the best course of action is to keep on top of your tax obligations. This includes knowing when lodgement and payment due dates are, as well as keeping tabs on how much your upcoming tax payments will be so you can put the money aside and be ready to pay on time.

If you are struggling with your tax debts, and are not sure how to set yourself up to have the correct amount of money, get in touch with us at Value Beyond to run you through:

Our 4 Phase Cash Flow Planner – it lays out how much you need to budget for to make sure you cover all your obligations
Our Cash Flow Masterclass – this guides you through the fundamentals of cash flow, and gives you practical tips on how to manage it to meet all your obligations
Our Business Review – this in depth review of your business will take you right through your numbers, so that you can understand your weakness, and find areas for improving your strengths to both increase profit and improve your cash flow management.

Upcoming Dates

9 May 2017

Federal Budget for 2017-2018 released

15 May 2017

Lodgement of all tax returns that did not have to lodge earlier, and payment by companies and super funds if required

21 May 2017

Lodgement and payment of monthly April 2017 activity statements

26 May 2017

Lodgement and payment of quarterly March 2017 activity statements where lodged electronically by tax agent

28 May 2017

Payment of 2017 Fringe Benefits Tax Annual Return amount

5 June 2017

Lodgement of income tax returns that are not required earlier and are non-taxable or have a credit assessment in the latest year lodged

21 June 2017

Lodgement and payment of monthly May 2017 activity statements

25 June 2017

Lodgement of 2017 Fringe Benefits Tax Annual Return for tax agents

30 June 2017

Superannuation guarantee contributions must be paid by this date to qualify for a tax deduction in the 2016- 2017 financial year

The Value Add – April 2017

Ian Wood · April 3, 2017 ·

We’re Stomping again!

As we head into the winter months, the team at Value Beyond will be hitting the stairs to get in some much needed training for the 2017 Stadium Stomp at the Gabba on 30 July 2017.

Climbing over 5,000 stairs, this year we will be raising money for the Leukaemia Foundation. Each year, The Leukaemia Foundation helps more than 750 families from regional and rural Australia by providing free accommodation in our capital cities so they can access life-saving treatment at major hospitals.

They also provide counselling, comprehensive information, education and support to help the 60,000 Australians who are currently living with a blood cancer.

DONATE NOW

Don’t Miss Out On Your $20,000!

The immediate write off of assets under $20,000 for small businesses with group turnover of less than $2 million, ends on 30 June 2017.

Subject to any announcements in the upcoming budget, the threshold for being able to immediately deduct the full value of assets purchased will drop to just $1,000 from 1 July 2017.

This means that if you are considering purchasing any assets for your business, you should consider doing this before the end of the financial year in order to take advantage of the deduction, and to maximise the tax benefit of any asset purchase.

How much of a benefit will I get?

Assume you buy an asset that is related to your business for $20,900. After claiming back the $1,900 of GST in the price, the remaining cost is $19,000.

Assuming you are on a 30% rate of tax, this will save you $5,700 in tax. The net cost therefore, is $20,900 – $1,900 – $5,700 = $13,300.

The end result is that you still have to spend $13,300 in after tax cash in order to purchase the asset, so you need to ensure that you are spending wisely and not just buying things for the sake of saving tax.

Having said that, if your business needs new items in order to continue operating or to open up new opportunities for revenue, then purchasing before 30 June 2017 may be just the benefit you are looking for!

Tax Officers To Hit The Streets

The Australian Taxation Office (ATO) is visiting more than 400 businesses across Perth and Canberra over the next month as part of a campaign to help small businesses stay on top of their tax affairs.

Assistant Commissioner Tom Wheeler said the ATO has a focus on businesses operating in the cash and hidden economy to ensure fairness for all businesses and the community.

“Our officers will be visiting restaurants and cafés, hair and beauty and other small businesses in Perth and Canberra to make sure their registration details are up to date. These industries are on our radar because they have ready access to cash, and this is a major risk indicator,” Mr Wheeler said.

“Visiting these businesses in person is about helping them to meet their obligations. Through the visits we can quickly identify who needs extra support and make it easier for them to comply.

“We know that the majority of businesses get it right, so our first aim is to help businesses by checking they are properly registered and provide them with an opportunity to ask questions in person.

“We then work to protect honest businesses from unfair competition by taking action against those who do the wrong thing.”

Mr Wheeler said the community plays an important role in making the tax system fair for everyone.

“We take reports from the community very seriously. The industries we’re visiting have some of the highest rates of concerns reported to us from across the country,” Mr Wheeler said.

“The visits are part of an ongoing program of work, which is making its way around the country.

“We are taking the time to educate and support small businesses and their representatives who might not know how to meet their obligations. So far we’ve met businesses in Sydney, Adelaide, Melbourne and the Gold Coast.”

How Will Higher Interest Rates Impact You?

There is plenty of talk about the levels of supply of housing and inner city apartments, soaring prices and the future of interest rates across this year and next year.

Some banks have already hiked up rates in a move that is out of sync with the Reserve Bank, which indicates that recent rate cuts to historically low interest rates may be at end and we may be starting to the start in rising rates.

How will rising rates affect you?

Given that a number of banks have been assessing loans for the last 6-12 months using interest rates of 7.5% to determine serviceability, would you be able to handle a rate rise of that much?

If you have any concerns about your loans, contact us at Value Beyond to put you in touch with finance specialists who can help you review your borrowings, and find the best deals and options for you.

The Value Add – March 2017

Ian Wood · March 1, 2017 ·

The weather is cooling down, but the changes in tax are hotting up! From 1 July 2017, there are significant changes to the rules on superannuation.

With only 4 months to go it will pay to make sure you know where your position is to ensure you take full advantage, or minimise the impact, of the coming changes.

The Federal Budget is coming up in 2 months’ time (second Tuesday in May), and this usually sees more changes to taxation. With the focus on the budget deficit and how this shortfall will be funded, all eyes will be on changes to tax.

We will be providing our summary and thoughts on the Budget in our annual update on the morning after the Budget, so keep an eye out for that in your inbox on the Wednesday morning!

Is Cashflow An Issue For You?

The number one issue that the majority of businesses, and individuals, face is cash flow.

You can make as much money as you want, but if you don’t manage the flow of cash in and out of your bank account you can still find yourself short and having to manage payments on a regular basis.

How do I fix this problem?

Knowing you have a problem is only one part of the equation.

Knowing how to fix it is the important key to getting out of a cash flow hole and getting yourself financially fit and back on track.

Firstly, do a budget.

On a personal level this means tallying up all of your after tax income, and your regular and one-off expenses.

For a business, this involves a similar process of forecasting income and expenses, with the added factor of GST and other quarterly payment obligations which affect the timing of the outflows.

Having a good handle on how much and when that amount is payable is vitally important to managing the cash flow, and not spending money that you don’t really have available as it should be kept for future payments.

The next step is to review the incoming and outgoing funds and understand where the pain points are.

Do you never have enough for the BAS? Does your credit card always seem to be higher than expected? Are you over committed in your debts?

The point of this exercise is not to lay blame, but to acknowledge what the issue is so that it can be understood and a plan can be put in place to improve your cash flow.

What then?

Once those steps are done, then the key part is action! Know your limits in spending, put money aside for future obligations, know your numbers so you aren’t surprised or caught short by bills and payment obligations, and look at ways to increase your income to cover any shortfall.

Still stuck on what to do to improve your situation? Look out for our Cash Flow Masterclass which we will be running in late March/early April.

This workshop was run last year, and attendees found it useful to both understand the theory of cash flow, as well as practical tips to manage it on a day to basis.

Telstra Business Awards Are Now Open

Do you run your own business? Or do you know someone else who is running their own business?

Do you think what that business does is “award worthy”?

The Telstra Business Awards are now open, and applications close March 16, 2017.

Last year one of our customers Lingua Franca, a French language school, were nominated and then went on to win the Micro Business Of The Year at the Queensland awards held at City Hall in July 2016.

Not only did the win provide recognition and publicity for the business and what it had achieved, but even the process of entering and completing the application allowed Katrina Waugh and her team to better understand their business and the key aspects of what made it successful. The prizes for winning were just the icing on the cake.

As Katrina says: “Being nominated by one of our students was just the first in a run of wonderful events for us last year. By taking part in the Telstra Business Awards we were able to look back and really take stock of how far we’d come, where we could improve and where we wanted to go next. This calendar year we have seen a very healthy increase in turnover. I am sure the exposure generated from our win helped, but more than anything I think it is the confidence it has given us as a team that has really made the difference. I would recommend the Telstra Business Awards to all small (and micro) business owners.”

For more information on the awards, eligibility and details about the judging categories and criteria, visit the Telstra Business Awards website at https://www.telstrabusinessawards.com/

If you decide you want to enter, but you aren’t sure how to go about completing the application, contact us at Value Beyond for assistance.

Finally, if you want to be inspired by some amazing businesses, their owners and their incredible stories, check out the videos of the speeches by last year’s winners.

Electronic Signing Is Here!

As part of our efforts to improve the efficiency and reduce the burden surrounding preparation and lodgement of tax returns and activity statements, we have set up an online Client Portal.

This Client Portal will not only allow you to securely download documents we have prepared, or upload documents you wish to send to us, but it also offers the ability to sign your returns electronically.

No more printing out the signing page and having to scan it back in!

The electronic signatures are managed by DocuSign, so they are secure, efficient, and the audit trail provided meets all the requirements to be a valid signature for your tax lodgements.

To get setup with the Client Portal we will send you an email invite, and from there you set up your account with your email address and a password of your choosing. We will upload documents for signing, and you will receive a notification any time there is a new document uploaded.

If you need to securely send any documents to Value Beyond, then you can use the Client Portal to upload them and we will receive notification when a new document is available for us.

If you have any questions about the Client Portal, or how e-signing works, please contact us at Value Beyond to discuss.

Upcoming Dates

21 March 2017

Lodgement and payment of monthly February 2017 activity statements

31 March 2017

Lodgement of tax returns for companies and super funds with income over $2 million in the latest year lodged, and individuals whose latest return resulted in a tax liability of $20,000 or more

21 April 2017

Lodgement and payment of monthly March 2017 activity statements

28 April 2017

Deadline for paying superannuation guarantee contributions on behalf of employees for the March 2017 quarter

15 May 2017

Lodgement of all tax returns that did not have to lodge earlier, and payment by companies and super funds if required

21 May 2017

Lodgement and payment of monthly April 2017 activity statements

26 May 2017

Lodgement and payment of quarterly March 2017 activity statements where lodged electronically by tax agent

The Value Add – February 2017

Ian Wood · February 1, 2017 ·

By now, Christmas and New Year seem like a distant memory, even though it probably also feels like it was only a few days ago!

How are your results so far?

Have you hit the ground running following a thought out plan, are you are just reacting to whatever is happening around you?

Our experience tells us that businesses and investors that have a plan or framework within they make their decisions, on average have much better results than those that just “wing it” or “go with the flow”.

I’ve even come across business owners whose attitude was “the economy will turn” – besides placing the responsibility on something other than themselves, that sounds more like hope than a plan!

If you aren’t sure what you need to do in order to improve your situation, contact us to arrange a time to discuss your current position and what your goals are. From there we can help you map out a plan, or put you in touch with relevant professionals within our network who can provide specific advice on areas such as:

Mortgages
Insurance
Wills and estate planning
Superannuation and retirement planning
Branding
Property investment

The Value Add - February 2017

Are You Taking On A New Employee?

Are you thinking about taking on an employee, but you’re not sure what you have to do? Some key issues to consider:

Can you take on an employee?

Whether you’re starting, running or growing your business, you can take on an employee. It doesn’t matter what structure you operate either. You will need to review your cash flow to make sure you can afford it, and to understand the impact to your cash flow.

What kind of employment are you offering?

You should consider how busy the job you need to fill will be, and how long you think you’ll need to employ someone for. Employing people using different working arrangements can keep your workplace flexible while also meeting your business needs.

Is your worker an employee or a contractor?

To work out your obligations as an employer, you need to know if your workers are employees or independent contractors. Most workers will be employees, and will only be independent contractors in limited circumstances. There are different definitions for workers’ compensation insurance and payroll tax, so it is important to get it right. Try the ATO’s Employee/Contractor Decision Tool to determine the status of your works for tax and super.

Can your employee legally work in Australia?

As an employer, it is your responsibility to make sure your workers can legally work in Australia. This includes employees you source from a contractor or labour hire company, for both paid and unpaid work. Use the Department of Immigration and Border Protection’s free Visa Entitlement Verification Online system to check if someone is allowed to work in Australia.

Are you paying the correct wages and entitlements?

There are 10 minimum employment standards that you must provide to all employees. They are called the National Employment Standards (NES). An employee’s minimum wages, including penalty rates and overtime, will come from the award or registered agreement that covers their employment. You can’t use or include any conditions in an employment contract, enterprise agreement or other registered agreement that:

provide a pay rate that is lower than the rate in the relevant award
are less than the national minimum wage or the NES
exclude the NES altogether

Penalties can apply if you fail to meet the NES in any way.

Do you need Workers Compensation Insurance?

As an employer, you must have insurance to cover workers if they are injured at work or become ill due to their work. This is known as workers’ compensation insurance. Workers’ compensation is covered by legislation in each state and territory. More details can be found at WorkCover Queensland.

What else do I need to consider?

Other issues to consider include:

What tax do you need to deduct from your employee’s pay?
What are your superannuation obligations?
What are your workplace health and safety obligations?
Do you need to register for portable long service leave? (building/construction and commercial cleaning industries)
What are your record keeping requirements?
What are your employee’s rights under anti-discrimination laws?

If you have any doubts about any of the above, contact us at Value Beyond to discuss what action you might need to take.

New Smoke Alarm Laws

Starting from 1 January 2017, new laws apply to fitting smoke alarms to dwellings which includes houses, townhouses and units. This is particularly relevant The new laws state that smoke alarms in the dwelling must:

be photoelectric (AS 3786); and
not also contain an ionisation sensor; and
be hardwired to the mains power supply with a secondary power source (i.e. battery); and
be interconnected with every other smoke alarm in the dwelling so all activate together.

Smoke alarms must be installed on each storey:

in each bedroom; and
in hallways which connect bedrooms and the rest of the dwelling; or
if there is no hallway, between the bedrooms and other parts of the storey; and
if there are no bedrooms on a storey at least one smoke alarm must be installed in the most likely path of travel to exit the dwelling.

These laws apply from:

1 January 2017 – new dwellings and dwellings being substantially renovated

1 January 2022 – dwellings being sold, leased or an existing lease is renewed

1 January 2027 – existing dwellings that don’t fit the earlier dates

ATO Data Matching For Online Activity

The ATO are collecting data from financial institutions and online selling sites for their credit and debit card, online selling, and ride-sourcing data programs. The data will include:

The total amount of credit and debit card payments businesses received
Online sellers who have sold at least $12,000 worth of goods or services
Payments made to ride-sourcing drivers from accounts held by the ride-sourcing facilitator.

The ATO will match this data with information provided in the taxpayer’s tax returns, activity statements and other records. It will help them identify businesses that need help and those that may not be reporting all their income or meeting their registration, lodgement or payment obligations.

What does this mean for me?

If you are earning income from services such as Uber and Airbnb, selling goods online through platforms such as eBay and Gumtree, or take payments via credit card processing facilities, then you need to ensure that you are declaring this income and paying GST where applicable.

If you have been earning income from these sources but are not sure if you are meeting your obligations, contact us at Value Beyond to review your situation and make any necessary adjustments to your tax lodgements.

How Good Is Your Excuse For Lodging Late?

Over our time we’ve heard some good excuses (as well as some quite legitimate reasons I might add) as to why tax returns are lodged late. But can you top these excuses from British taxpayers?!

Each year HM Revenue and Customs (HMRC) receives a number of unusual excuses why Self Assessment (SA) customers didn’t complete their tax return on time.

These include:

My tax return was on my yacht, which caught fire.
A wasp in my car caused me to have an accident and my tax return, which was inside, was destroyed.
My wife helps me with my tax return, but she had a headache for ten days.
My dog ate my tax return…and all of the reminders.
I couldn’t complete my tax return, because my husband left me and took our accountant with him. I am currently trying to find a new accountant.
My child scribbled all over the tax return, so I wasn’t able to send it back.
I work for myself, but a colleague borrowed my tax return to photocopy it and lost it.
My husband told me the deadline was the 31st March.
My internet connection failed.
The postman doesn’t deliver to my house.

The reasons above were all used in unsuccessful appeals against HMRC penalties for late returns.

“Blaming the postman, arguing with family members and pesky insects – it’s easy to see that some excuses for not completing a tax return on time can be more questionable than others. Luckily, it’s only a small minority who chance their arm.” If you do find yourself falling behind, let us know how we can help you get back on track. The other key thing is to be in contact with the ATO – it is always better to talk to them first before they catch up with you!

ATO Seminars For Small Business

The ATO have 30 events scheduled for February and March 2017, on Tax Essentials and Record Keeping, and these events are across multiple locations.

If you are interested in these events, visit the ATO Website for a list of the events, and then click on the links to register yourself to attend.