Tax Time Guide 2021: Attention business owners and individuals – Did you know your tax returns will not be processed before July 7, 2021 – and in some cases later than this if all of your information is not available to complete your return.
That’s because the ATO (Australian Taxation Office) does not start processing refunds until July 16, 2021. Process time is 12 business days from receipt of electronic lodgement.
The tax office has strict requirements on tax agents lodging their client tax returns and, in most circumstances, you will be required to provide some form of identification.
So what do you do in the meantime? Get your tax requirements together and read this Tax Time Guide 2021.
Tax Time – What you need to know
Common individual (salary and wage) deductions include:
- Car expenses
- Clothing and laundry
- Working from home expense
- Gifts and donations
- Travel expenses
- Self-education expenses
For your individual tax return, there are some specific records you need to keep.
If you claim work-related deductions, you must have records or be able to show how you have calculated your claims.
The ATO has an app available to easily record your expenses throughout the year including an electronic logbook for your motor vehicle.
FREE APP: For more information about the app go to this link
Tax Time Guide 2021 Hot Tip: Need help with your individual tax return? We have our very own checklist and secure upload link here.
If you run a business then you will need to monitor your income and expenses in one of the available accounting software apps. We highly recommend Xero and have a special Xero Setup and Training package if you need to upgrade your accounting software or get started.
There are several options for record keeping (those pesky PDF invoices and printed receipts) however, our clients use DEXT (originally Receipt Bank) and receive this free as part of our service package.
As a business client (sole trader, trust, partnership, or company) you may need to provide other records to your accountant, these can include:
- Bank statements (to confirm reconciliations are correct as of June 30).
- Insurance documentation (to check correct GST split and whether they include any private components).
- Invoices and loan documents for any asset purchases throughout the year.
- Documentation of any assets you have sold during the year.
- Loan statements (to ensure all eligible interest is claimed).
- Motor vehicle documents – logbooks – registration – insurances
- Value of stock on hand as of June 30 (for wholesalers and retailers).
- Payroll reports.
- Outstanding debtors (monies owing to you) as of June 30.
- Outstanding creditors (monies you owe) as of June 30.
Tax Time Guide 2021 Hot Tip: Need help with your business tax return? We have openings available to help you minimise your tax return for the 2021 year.