Every Friday we just want to stop the world for a moment and give you a couple of real tips to think about that will make a real difference to your business and in your life.
Can you feel it? Tax season is getting closer and closer and as we’ve often said, the key to victory is all in the planning. If you’re planning on forking over less tax to the government going forward, you’ll need to have a handle on the rules that affect deductibles from the largest piece of capital (10-colour large format printer anyone?) all the way down to the humble cup of coffee.
Yes coffee – it’s deductible in many circumstances because it can be considered an integral part of a “coffee” meeting with a client or indeed part of a more expansive work day snack.
Look, this is very exciting news, especially to those of us with a fiendish coffee addiction but again, you must consider the circumstances. Lining up soy milk, cappuccinos at your favourite weekend breakfast spot while you peruse the sport pages does not conform to the spirit of the law. Paying for the coffee and triple choc muffin a valued client orders during the course of your business meeting, does. You are well within your rights to claim coffee as deduction if it is purchased and consumed in the furtherance of your business endeavours and yes, meetings with clients or fellow team mates when things simply need to get done, certainly qualify.
Food. Within reason and under the right circumstances.
Tip: do not head down to your local supermarket, do a weekly shop for yourself and try to claim that. This will eventually lead to problems and a sweaty-palmed Q&A with the ATO.
Here are four circumstances under which you can confidently claim food:
The aim here is not simply to see how many deductions you can accrue. That would mean you’re losing sight of the larger goal: to increase profit so that your business can positively impact your family life. Make sure that there is a significant return on investment in the form of efficiencies or profit before you start ringing up deductions.
Have a great weekend and if you’re away working for the next couple of days, don’t forget to keep your receipts.
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