Over the past year, the demand for crafts has exploded.
It’s something we’ve seen first hand at hipsreflected in a record number of jobs posted online for everything from renovations to chimney sweeping and experts in tackling mold infestations following near-constant flooding and downpours on the East Coast.
I’ve spoken with countless trades who cycled so fast they struggled to keep up with running their business. With tax time fast approaching, it’s about to get a whole lot busier, especially for those struggling to keep control of their admin, who will need to switch tools for a calculator to take responsible for a year of receipts and invoices.
With the tax office more closely monitoring work-related expenses for 2022, paperwork isn’t something you want to rush or skimp on.
At juiceyou 25% in 2022the company The small business tax rate is at its lowest in 50 years. This additional tax relief means traders could be in a stronger position when they reinvest in and grow their business.
To help traders manage their businesses, I’ve put together six tips for making the most of any EOFY bargain and work smarter (not harder!) this upcoming exercise.
1. Less stress at tax time by going digital
The pursuit of unpaid bills is a huge headache for many trades at tax time. However, earlier this year the government announced a series of grants and incentives in the 2022-23 budget to make life more manageable for small businesses.
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One of these incentives was the Boosting technology investmentsdesigned to flowLining heavy administrative tasks such as quotes, invoicing and work managementt more accessible by encourage investment in digital technologies and online tools. Under the Technology Investment Boost, for every $100 invested in digital technology by a small business, $120 tax relief will be provided, in everything from accounting to subscription and cloud-based services, to devices mobile payments and cybersecurity systems.
2. Improve skills and develop your team
By investing in your team, you are investing in your business.
Another valuable incentive to come out of the 2022-23 budget for trades is building skills and training. Available until June 30, 2024, for for every $100 a small business spends on qualifying external training and development, it will receive a tax deduction of $120. If you work in a priority trade, a revamped wage subsidy program is also in place, meaning your business may also be eligible for up to $15,000 for each apprentice you hire.
3. Review your advertising and marketing spend
Submitting your tax return is a great time to take stock of your company’s monthly marketing and advertising expenses. Assess the number of inbound leads and which channels are delivering results. Ask yourself, aAre you getting a good return on investment?
Marketing and advertising can be a huge expense for small business owners, and we’ve seen many marketers fall into the trap of investing in pay-per-click online advertising services, which can be expensive and time-consuming. in place and to be implemented, with a low return on investment to start.
4. Support your apprentices
Apprentices are essential to the long-term viability of the industry. Make sure you support apprentices at tax time by ensuring they are aware of programs and incentives that could make it easier to juggle work, life and expenses while learning on the job.
For instance, Trade Support Loans (TSL) can help cover over $20,000 in daily costs over the course of their apprenticeship. The Living away from home allowance (LAFHA) is too offered to eligible apprentices during their first three years of training.
For apprentices with disabilities, the government provides support through assistance for tutoring, interpreting and mentoring services. Also, if your apprentice has received COVID-19 disaster payments, make sure they are aware that the ATO has reclassified these as a non-taxable payment, and they may be eligible for a refund on their 2020-2021 return.
5. Invest in new wheels
Thanks to the $150,000 Instant write-off of assets, traders with their own business can purchase assets, such as new or used work vehicles, and claim them immediately as tax deductions. To be eligible, assets must be used for the first time by June 2023. A major boost for businesses in need of new vehicles, under this program, commercial enterprises can purchase a ute up to a value of $59,136 before GST.
While bbusinesses that make a loss will not be able to deduct the investment from their taxable income, you may be able to claim retrospectively against pre-COVIDE profit due to the extension of the loss deferral provisions.
6. Do your research
When this arrives at tax time, make sure you know the key dates, deadlines and deadlines for the various claims. If you haven’t already, consider hiring an accountant who specializes in trades and knows the deductions available to your business.
To get the most bang for your buck, make sure you have a watertight method in place to keep an accurate record of everything. business related expenses. This includes central storage of all bills and receipts for meals and accommodation if you’ve traveled away from home overnight for work; purchased protective clothing or PPE, including items such as steel hooded boots, sunscreen, and masks; expenses incurred for laundry or dry cleaning; costs related to the operation of a home office and work vehicles; as well as tools and materials.
Roby Sharon-Zipser is CEO and co-founder of the hipages group.