There are numerous reasons why business fail and these can include lack of planning, poor financial management and leadership, lack of profits or marketing strategy, just to name a few. In order to survive, a trade business owner needs to ensure that all the business functions are getting full attention. However, playing the jack of all trades within the business can lead to important business functions being unattended to.
As we fast approach the end of the financial year, did you know that as a trade business owner, you can legally minimize your taxation liability by seeing a professional adviser.
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.
The most common questions we receive from clients in regard to purchasing a vehicle for their business are: