Maximising your Tax Return 2018 – Parramatta
Providing tax return services to the Parramatta and surroundings areas, Key Business Accountants can assist you to legally maximise your refund and plan for the next Financial Year. We have experience with a broad range of tax accounts, and are committed to delivering premium and personalised services. We can assist with your tax returns for; Individuals, Small Businesses, Companies, Partnerships, Self-Managed Super Funds (SMSF) and Trusts.
Our Tax Tips to maximise your return
Keeping all of your records and important documents
It is essential that you keep well organised records, including any work-related receipts, invoices, logbooks or payment summaries. You will need these and other important documents to be able to claim your deductions. This may seem like an obvious piece of advice, but many people often lose or misplace important documents, and don’t have them readily available at Tax Time.
Generally, you will need to keep these documents for five years from when you lodged your tax return.
Records you may need to keep include:
- Payment summaries, such as from your employer or the Department of Human Services
- Bank statements, showing the interest that you have incurred
- Dividend statements for companies
- Summaries from managed investment funds
- Receipts or invoices for work-related equipment/asset purchases and sales
- Receipts or invoices for work-related claims and repairs
- Tenant and/or rental records.
Keeping a Vehicle Logbook
From 2016, a Vehicle Logbook will soon be one of main methods to make car expenses claims allowed by the ATO. To be able to claim these deductions, the vehicle must have been used for work-related reasons, such as transporting a product or service, or attending meetings in a different office. If you are a Small Business Owner and frequently use your car for work-related purposes, a Vehicle Logbook may assist you to maximise your tax refund.
Although it can take a bit of patience and dedication to start noting your work vehicle use; it is only one recording period of 12 weeks, for every five years. This time period will act as a representation of the full year, and overall, can be quite convenient to use.
How to keep an effective Vehicle Logbook:
- Write it down – You can use pre-printed logbooks (available from stationery suppliers) or you can make your own. Ensure that all of the trip details are included, as listed in the paragraph below.
- Each Logbook is valid for tax purposes for five years, but you may start a new Logbook at any time.
- If this is the first year you have used a Logbook, remember that you must keep a Logbook for at least 12 continuous weeks, during the income tax year. That 12-week period needs to be representative of your travel throughout the year.
- If you started to use your car for business purposes for less than 12 weeks before the end of the Financial Year, you need to continue to keep the Logbook into the next year so it covers the required 12 weeks.
- If you want to use the Logbook method for two or more cars, the Logbook for each car must cover the same time period. The 12-week period you choose should be representative of the business use of all vehicles.
- Keep your receipts – You must have written evidence of your fuel and oil costs, as well as odometer readings on which your estimates are based.
- Must have written evidence for all your other work-related vehicle expenses.
The logbook must include the following details:
- The date for each journey
- The start and finish times for each journey
- The start and finish odometer readings for each journey
- Total number of kilometres for each journey
- Reason for each journey
- The start and finish dates for the logbook period
- The start and finish odometer readings for the logbook period
- Total number of kilometres travelled during the period
The type of vehicle expenses that you may be able to claim, include:
- Running costs, such as fuel, oil and servicing
- Vehicle depreciation
Vehicle expenses that are cannot claim, include:
- The purchase cost of the car
- Parking tickets, and speeding or other fines
Get the best from your tax return this End of Financial Year.
For more information or to make an appointment, please contact us below or call us on 1800 979 888