BUSINESS TAX RETURN
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Types of businesses and their Tax return
Tax Tips for You
Get Experts to File Your Business Tax Returns
The financial year is about to mark its ending on 30th June and the hustle to lodge business tax returns will start soon after it. At Auditax, we believe that “TAX RETURNS SHOULD NOT FEEL LIKE A HEADACHE, IT SHOULD BE ORGANIZED IN A WAY THAT IT SAVES YOUR TAXES AS WELL AS TIME”. That is exactly how we work at Auditax.
Keeping up with tax laws may not be an easy task and that is where tax professionals like us have a significant role to play. We ensure that your business tax returns are filed with utmost care leaving no scope for any discrepancies. This helps you avoid any query from the ATO and you stay compliant. Here are some reasons why you can consider Auditax for your business tax returns:
- We are registered with the Tax Practitioners Board and thus you can appoint us as your registered tax agent.
- It is easy to connect with us and you can reach us through our online tools, chats, and mails. Our team will reach out to you to handle your concern.
- We help you maintain your tax documents such as documents substantiating business expenses so that you can retrieve the same when required.
- If your tax return is in an overdue state then we can file the same with the ATO and can also communicate on your behalf with the ATO for remission of penalties.
- We help you correct your previous tax returns if any error is there.
You may reach out to us if you have any further queries about how we can help you with tax matters.
Tax returns are just one of the many things that you need to take care of while running a business. We help our clients in the other business verticals as well as per their needs. Be it regular bookkeeping or guiding you through complex financial decisions, we have got you covered. We can help you with the following business services:
- Business setup
- Tax planning
- Payroll processing and management
- SMSF start-up and compliances
- Management reporting
- Business consultancy
Read further to understand how business tax returns can be lodged with the ATO.
Different Ways to Lodge Your Tax Return
There are four ways through which you can lodge your business tax return. These include:
- Taxpayers can lodge the returns through a registered tax agent such as Auditax that is registered with the Tax Practitioners Board (TBP). However, you need to intimate to your tax agent before 31st October if you choose to lodge your tax return through them.
- A sole trader can also file their tax return online with myTax. If you also file your sole trader returns yourself then you may reach out to us for help if you face any complications regarding any matter. Our team will advise you about lodging your tax return through myTax.
- Companies, partnership firms, and trusts can use the standard business reporting (SBR) enabled software.
- Taxpayers also have an option to lodge the returns through paper mode via mails. If you lodge your return through this mode then the refunds are generally issued within a timeframe of 50 days of the lodgement.
Types of businesses and their Tax return
Sole Trader Tax Return
The simplest way to set up a business is through a sole trader structure. Talking about tax returns, sole traders are required to lodge a sole trader tax return. You can use your individual tax file number when you lodge your tax return. The tax rates that apply to sole traders are the same that applies to individual taxpayers and you may also set claim small business set off if the eligibility criterion is met.
We at Auditax make sure that each and every deduction is taken into consideration after all the components of your income including
- Rental income,
- Income in the form of salary and wages, and
- Business income
are added up and expenses are claimed.
Partnership Tax Return
If you are carrying out your business through a partnership firm consisting of 2 or more partners, then you need to lodge an annual partnership tax return disclosing the details of the incomes earned and deductions claimed during the year. It is worthy to note that the partnership firm although files the annual return but doesn’t pay tax on the net income that it earns. Instead, the partners pay tax on their respective share of the firm’s profit by including the same in their individual tax return.
Tax returns for partnership firms are quite different and that is why their lodgement requires special consideration of tax laws. For example, the amounts that the partners draw from the partnership firm can’t be claimed as a deduction by the firm.
At Auditax, we have a dedicated team of tax professionals who can handle your partnership tax returns so that you stay ATO compliant and avoid any litigation. In case of a partnership arrangement, it is important to disclose the share of each partner in the profits, salary paid to the partners, and any dividend paid to the partners. This information is critical when it comes to lodgement of a partnership tax return.
Company Tax Return
Every company registered in Australia is under an obligation to lodge their annual tax return. Company tax return represents your net income that is calculated by deducting all expenses from the gross income and then adjusted for tax deductions, if any. The corporate tax rate stands at 30% of the net taxable income. Further, a lower rate may apply if the company is a base rate entity.
It is important that your company tax returns are managed by professionals so that chances of any discrepancies are eliminated and tax liability is minimized after taking the benefit of every deduction allowed under the tax laws. That is how Auditax helps you and our professionals can also guide you with the tax rate that shall apply to your company along with other additional matters that may arise.
ABN Tax Return
Businesses or other enterprises need to apply for an ABN (Australian Business Number). It is a unique 11-digit number that is issued to businesses that identify them to the government as well as other parties. The ABN can be used for the following purposes:
- It helps in identifying the business in various instances.
- ABN helps in avoiding pay as you go (PAYG) tax on payments that you get.
- The number helps in claiming goods and services tax (GST) credits on expenses.
- With the help of an ABN, a business can claim energy grants credits.
- It can also help your business get an Australian domain name.
Most businesses that have an ABN are obliged to lodge an annual tax return. Failure to do so can lead to levy of penalties by the ATO. Irrespective of the fact whether a business is in losses or profits it is required to lodge its tax return. If you are not sure how to obtain ABN then you can contact us and our team will secure the registration for you in the least time involved.
Tax Tips for You
- Disclose all incomes and do not conceal any income
The purpose of lodging tax returns is to disclose the details of all the incomes and expenses to the ATO and pay the applicable taxes. If you miss out on any information about the incomes earned by you during the year then you may get into unnecessary litigation later on.
- Keep proper records to substantiate the claim of business expenses
The expenses that you claim in your business tax returns ought to be genuine. For establishing the correctness of your claims, it is important that you keep proper backup documents that serve as a piece of evidence. If you feel any difficulty in maintaining your tax documents, you may take our help as we keep your documents and files safe in our clouds so that the same can be retrieved whenever required.
- Do not claim personal expenses as business expenses
When lodging business tax return, you can only claim a deduction for business expenses. Make sure you do not make any claim for personal expenses. If you are incurring any expenses for partly business purposes and partly personal purposes, then you must proportionate the same and claim only the business-related expense.
We hope that this article helps you have a better perspective on business tax returns.