It’s not long now until the end of another financial year rolls around and we all know what that means… time to review your records and get organised before it’s too late!
Here are a few handy hints and tips to help you to get prepared prior to the end of the 2021 tax year:
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- Service fees are one of the biggest expenses for many doctors. Ensure these are being paid in line with your agreements and are paid in full by 30 June.
- Can you prepay any expenses such as professional memberships, subscriptions or even donations to bring forward your deduction?
- Consider maximising your concessional superannuation limit of $25,000 - it’s important that payments are paid well in advance of 30 June to give your super fund enough time to process
- Ensure your motor vehicle logbook is up to date. Costs such as fuel, repairs and insurances are claimable based up to your relevant business use percentage.
- Have you purchased any assets during the year? Let’s get this information together now whilst it is readily available. With the instant asset write off being extended to 31 December 2020 there may be some significant deductions here.
We also appreciate that your practice manager plays a crucial role in gathering information on behalf of the practice at this time of year. Here are a few key areas we suggest should be a focus:
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- Ensure staff salaries and superannuation are paid and reconciled for the tax year, superannuation must be paid before 30 June 2021 if you wish to claim a deduction.
- Review expenses to ensure explanations are clear, especially around items such as entertainment, staff training and repairs.
- The practice clearing account should be cleared in full, with all doctor and service payments made by 30 June 2021.
- Do you sub-lease rooms? Now is a good time to ensure that any annual rent reviews have been attended to during the year.
- Also remember STP finalisation needs to be completed prior to 14 July 2021.
Tax is one of the largest expenses you have, so it makes sense to ensure you are maximising any deductions that may be available to you.
If you think you may need some help with tax and strategic planning, please do not hesitate to get into contact with our team.
