Year End Tax Planning

It's that time of the year again when we start scrambling to get in all those last minute deductions.

Here are some tips on reducing your income before 30 June and therefore reducing your tax bill:-

• Prepay up to 12 months of expenses - like rent, income protection insurance, interest on investment loans, subscriptions
• Donate - there are many worthy causes out there that need our help.  But if you want a tax deduction make sure they have the 'Deductible Gift Recipient' status otherwise your donation won't count towards reducing your tax
• Contribute to super - you can contribute to super but be aware of the deductible contribution caps - $25,000 for  under 50 and $50,000 for over 50. 
• Fancy an iPad?  small business concessions allow business to claim up front a deduction for most assets costing less than $1,000.

This time of year is also a great time to get organised.  Why not see your accountant earlier rather than later and then give yourself time to budget for possible tax payable.

Here are some great ways to get organised and save money on your next visit to the accountant:-

• Tally up your receipts under specific headings such as Stationery, Parking, Subscriptions in an Excel spreadsheet.  
• File your receipts in an expanding folder for easy access and easy storage.
• Scan receipts and credit card statements saving them on your computer and/or portable hard drive.
• Get in early and see your accountant.  If you have tax to pay, you may be able to delay payment until May 2012.  Give yourself time to plan and save and whilst you are seeing your accountant, embark on a tax planning strategy for the new financial year at the same time

Not sure if something is tax deductible or not?  Keep a separate folder/file for all those "not sure" items with a list so it is easy to address with your accountant.