You're stuck inside, you can't trade and we have just begun a new financial year. Maybe you could use the time constructively and get your books set up on Xero for the new financial year, and take a few personalised one-on-one lessons in how to manage your books.
Once set up, and you are shown how, Xero is easy to use (sometimes it even feels like a video game).
Stay in control of your business, have income figures at your fingertips (makes applying for grants much easier), provide ready-to use information to your accountant or tax agent (and their bills should be much cheaper), manage your upcoming taxes so you have no surprises, pay your staff confidently and generate your TPAR easily.
And you always have me here if you need guidance.
Is the ATO giving you a hard time because you haven't done your TPAR for 2020 financial year or before? You are not alone. There are many in the Building and Construction industry who have not lodged their 2020 Taxable Payments Annual Report and the ATO are cracking down.
So what is a TPAR? It is a report that certain sectors of business must lodge with the ATO on a yearly basis. To date, it is the Building & Construction industry, couriers or road freight services, cleaning services, Information Technology services and investment or surveillance services. The ATO are increasing the number of sectors that must report TPAR.
The TPAR reports on all of the sub contractors that you have engaged throughout the year. Those subbies might be sole traders, parnerships or companies or trusts. You have to tell the ATO who you have engaged, how much labour they have invoiced you for and provide the subbies phone, address, ABN, and whether or not they charged you GST.
Making sure that you do not pay a subby unless he has provided you with an invoice that has an identifying number, is dated, has all of the above details on it, and checks out with the ABN register for GST charged will help you enormously when it comes to producing your TPAR. If you don't make sure these things are in place before you pay your subby, you can easily find yourself chasing them later for information that is either not forthcoming or incorrect.
Give me a call today if you are having difficulty putting your TPAR together. We specialise in this report and can take the worry out of producing it for you.
Small businesses with a turnover up to $10 million will continue to be able to immediately write off expenditure up to $20,000 for a further year.
Eligible assets cost less than $20,000 first used or installed ready for use by 30 June 2018.
Only a few assets are not eligible (such as horticultural plants and in-house software).
Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool (the pool) and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period (including existing pools).
The current ‘lock out’ laws for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they opt out) will continue to be suspended until 30 June 2018. This measure will improve cash flow for small businesses, for another year.
From 1 July 2018 the immediate deductibility threshold and the balance at which the pool can be immediately be deducted will revert back to $1,000.
Bookkeeper, BAS Agent, Diploma Accounting, I love helping small businesses get their books back in order and create calm out of chaos.