You’d be forgiven for breaking into a cold sweat at the mere thought of tackling your taxes this year. With periods of lockdown, as well as working from home, it’s going to be unlike any other tax season your salon has seen.
To help small businesses meet their tax obligations, the Australian Taxation Office (ATO) has released a tax time toolkit which contains easy-to-understand fact sheets on matters that small businesses should be aware of, with a focus of the regulations around measures introduced in light of COVID-19.
The fact sheets include information on:
- Home-based business expenses – for claiming deductions if using your home as your main place of business.
- Pausing or permanently closing your business – if needing to pause or permanently close a business.
- Motor vehicle expenses – for claiming deductions for motor vehicle expenses for your business.
- Travel expenses – for claiming deduction for business-travel expenses.
- Using your company’s money or assets – if you’re a director or shareholder of a company that operates a small business and have taken out money from the company or use its assets.
“As we all continue to navigate the COVID-19 pandemic, we completely appreciate that it’s a really tough time for many small businesses,” ATO Assistant Commissioner Andrew Watson said. “Our job is to continue to support businesses who need help with their tax and super obligations, in partnership with the tax profession. Many small businesses have had a really difficult few months, and we fully acknowledge this. From bushfires to floods to COVID-19, we know times are tough. Small businesses have a long to-do list, and tax obligations are just one of many items that need to be done. We also know that many small businesses rely on and trust the advice of their tax professional. Whether you use a registered tax professional or lodge your own tax return, we hope our toolkit will be helpful when the time is right to sit down and consider lodging your income tax return.”
The ATO reminded business owners to ask for help with their taxes if they need it and not be shy about it.
The tax time 2020 toolkit for small business is available on the ATO’s website.
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