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The ATO is warning businesses in the pet industry that they are going to focus on 5 key common “mistakes” this year. Here’s the list:

1. Claiming of private expenses in the business.
2. Failing to properly attribute personal and business use.
3. Misunderstanding how tax applies for different and often complex business structures.
4. Omitting income, including coupon sales.
5. Not providing the necessary records for substantiating expense claims.

The ATO has three golden rules for businesses claiming expense:

1. Ensuring you only claim money has been spent on your business and not for personal use.
2. Where there is a mix of business and personal use, only claim the business portion.
3. Ensure adequate records are provided to substantiate expense claims.
BDO accounting firm has released a note to help tax time planning, with tips about everything from home office expenses to franking credits.

It’s best for business owners to speak to their accountant by the end of May to allow enough time to get organised.

The instant asset write-off now covers assets up to $30,000, but only for assets purchased after 7.30pm on April 2.
Businesses are also being advised the company tax rate for businesses with up to $50 million in annual revenue is 27.5%.
There’s a clear association between businesses who plan ahead and those who succeed. Start your planning now for a successful tax time!