New ATO toolkit helps small businesses get expenses right

The ATO has developed a new toolkit that helps small business owners to understand their entitlements and avoid mistakes in their tax returns.

The 2019 Tax Time Toolkit Small Business covers information about:

• Three of the most common expenses: home-based business, motor vehicle, and business travel.
• Single Touch Payroll (STP) for small employers.

These toolkits are designed to highlight areas that small businesses may struggle with at tax time. Subjects include:

• Information about claiming deductions for home-based business expenses.
• Types of motor vehicle expenses that you can claim.
• The importance of accurate record keeping.
• How to differentiate between business and private use.

One of the factsheets, in particular, provides options and support for employers using STP. Some of the important topics outlined in the fact sheet include:

• What information you need to report and when you need to report it.
• How to correct the amounts reported.
• The changes to payment summaries.
• Information you need to provide to your employees.
• Available exemptions.

As it is common for there to be confusion around these topics, taking the time to understand your obligations as a business owner can streamline the returns process and help to ensure correct reporting.

Posted on 12 August '19 by admin, under Uncategorized.