Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee (or an employee's associate e.g. a family member) in place of salary or wages. This is separate to income tax and is calculated on the taxable value of the fringe benefits provided. Trade businesses in particular usually have vehicles or other assets that are used by employees for private purposes. It is important for business owners to identify this usage and report to the Australian Taxation Office (ATO). We will prepare your FBT returns for you and lodge them with the ATO.
Almost every business has an end-of-year function and/or Christmas event. You have to be careful when hosting these types of functions because Fringe Benefits Tax has a way of wedging itself between your budget and your plans. So how can you minimise the FBT on your next function and what are some of the rules regarding entertainment and food that you may have to consider?