Tax Refund Tips for 2017
To increase your tax refund in 2017, you need to either reduce your taxable income or increase your deductable expenses. Now this doesn’t mean that you should go out and earn less and spend more.
What it does mean though is that if you run a business, you should look at the timing of both the payments you receive and the expenses you pay.
Tax Deduction Tip 1 - Working with your debtors
As 30 June comes closer, look to see what payments are owed to you prior to 30 June or soon after. Depending on your particular situation, it may be beneficial to you and some of your customers to manage the timing of those payments, either side of 30 June.
For example, if your eligible expenses are lower than normal, relative to your income for the current financial year, it may be worth requesting certain invoices are paid by your customers, after 30 June.
Tax Deduction Tip 2 - Time your expenses
It’s also possible to bring forward some of your major expenses, such as;
- Interest payment on loans ( see our recent blog on interest in advance)
- Rent / lease payments
Prepayments are usually regarded as a once off benefit rather than permanent benefit, unless of course you continue to bring forward such payments each year.
Something else worth considering, that again depends on your personal circumstances, is the fully tax deductable status of plant and equipment, up to the value of $20,000, within the one financial year.
Think big picture
Decisions such as the timing of deductable expense payments should not be made in isolation but rather, as part of a complete tax reduction strategy for your business that takes into account key considerations such as cash flow and all the factors that impact it.
A strategic approach to tax reduction requires expert advice from qualified people with a solid track record in helping businesses similar to yours.
So talk to the tax refund experts at Johnston Grocke today for the best tax advice on 83030300.