Small Business Tax Return
Small Business Tax Return Services
ITP The Income Tax Professionals have more than 40 years experience helping small businesses with their finances. If you’re a sole trader, company, trust or partnership, you’ll need an accountant that understands financial intricacies throughout the year to help guide your business towards the success you want.
In today’s fast-paced world, business owners need more than just tax returns. Small business looks for a streamlined partnership that incorporates financial advice, bookkeeping, cash-flow control, BAS, PAYG, STP and planning towards future growth. Smart small businesses want year-round complete financial management without it being a drain on their time.
As a sole trader, you pay the same tax as individual taxpayers, at individual income tax rates. The tax-free threshold is $18,200 for both sole traders and individuals. The tax rates can change from time-to-time, so it’s important to be up to date on the latest tax regulations and changes to maximise your tax returns.
Financial business health is more than an annual tax return though. As a savvy sole trader, you don’t need to know the finer tax details, you just need to know where to go to find someone who does.
ITP The Income Tax Professionals are registered Tax Agents who specialise in tax regulations and provide year round tax advice. They understand that money in your pocket is better than the tax-man’s.
Many sole trader businesses are four employees and less, often singular. Our Professionals understand how busy it can get. There’s nothing worse than being stretched thin on the ground and having a BAS statement to lodge. ITP offer bookkeeping services so that sole traders are organised and don’t have to worry about lodging quarterly statements themselves.
A company is a legal entity with higher set-up and administration costs, which also entails additional reporting requirements. A company is run by its directors and is owned by shareholders. While a company provides some asset protection, its directors can be legally liable for their actions and, in some cases, the debts of the company.
A company will incur a flat tax rate of 30% unless they qualify as a base rate entity. Many companies with a turnover of less than $25m may qualify as one of these entities and in that case the tax rate would currently be 27.5%. Employees will also be taxed at the personal income rate. There are many claims that can be made, but that can become incredibly complex. You may be eligible for small business concessions. Personal services income may also be applied if the company receives an income from your personal efforts, skills or expertise.
There are good reasons for hiring an accountant at different stages of your company’s growth. From a business plan to company formation, loan application to government audit, an accountant can make life easier for you at each step. An ITP Professional will aid with your business planning, software capabilities, business legal structure, measure key metrics such as the ratio of salaries and other employee payments to total revenue, manage your STP payroll and pay your quarterly obligations.
A good accountant will help you every step of the way.
Trusts are fast becoming a common way of structuring financial affairs. With a logical, tax-efficient distribution of earnings that can benefit generations it is imperative to employ an independent body to manage your trust fund.
The world of trusts is complex. A Trust Fund has its own specific set of procedures, regulations and tax considerations and is a private legal arrangement in which the ownership of asset’s, such as stocks, bonds, cash, real estate, antiques and even fine art is managed on behalf of trustees.
Beneficiaries may need to declare their share of the trust’s net income in their own income tax returns, and may be able to claim a credit for the tax paid on their behalf by the trustee. Higher rates of tax apply to most trust distributions to minors.
When working with trusts, money needs to be managed, separated and legally legered into the correct trust accounts. There are an array of records that need to be managed along with the commissions and payments. Special rules and regulations govern how trusts accounts are managed and often change.
A partnership is a business structure that involves a number of people who carry on a business together. A partnership may be structured when a business is jointly run with another person or a number of people (up to 20).
There are two types of partnerships – general and limited. They are relatively inexpensive to set up and operate, however partners share income, control of the business and losses.
Partnerships will also need to pay GST where their turnover exceeds $75,000. Superannuation payments will also be required where you have employees. While it may be possible for a small business partnership to carry out their financial rigorous demands, a third-party accountant offers support to your business, certainty that your finances are carried out indiscriminately and are being consistently handled.
An ITP Professional is not just a number cruncher. They can help out with any stage of your business and are often uniquely placed to provide essential financial strategic advice to small business owners. Not only will partnering with a Professional aid with your tax-related needs and maximise your tax-return, you will save time, money, sanity and enable you to plan for your future.
An ITP Professional becomes your Professional and partners with small business owners to provide highly relevant experience and play a highly crucial role towards your business success.
If you want to estimate your tax return for your small business, you can use the ITP’s Tax Calculator tool. If you have any questions, please visit our Frequently Asked Questions page, or to speak with a consultant, phone 1800 376 487 or make an online booking.
We can help you and your business partner navigate your taxes throughout the year
You may run your business by yourself, but you don’t have to worry about your financial obligations on your own
We have more than 40 years experience guiding owners through their business accounting and corporate tax obligations