Hiring a Tax Accountant vs Doing Your Own Tax Return

Freelancing gives you flexibility, but it also means keeping track of your own tax. This is where small expenses can easily slip through. A software subscription, part of your internet bill, a training course or a few client-related trips might not seem like much on their own. Over a full financial year, though, they can add up. As a general rule, you can claim business expenses that are directly related to earning your assessable income. If something is partly for business and partly private, you generally need to separate the private portion and claim only the business use. 1. Working From Home If your spare room, dining table or home office doubles as your workplace, you may have home-based business expenses you can claim. Depending on your circumstances and the method used, this can include costs such as electricity, phone, internet and other running expenses. The important part is determining the eligible business amount and maintaining the records needed to support it. A common...

Providing perks like company cars, team dinners, or paying back employee expenses seems like standard practice. But in Australia, these everyday perks can quickly trigger Fringe Benefits Tax, and surprise employers at tax time. FBT sits outside the normal payroll and income tax system and can apply to businesses of any size. Understanding it early can help employers avoid unexpected bills and keep the right records. What Is Fringe Benefits Tax? Fringe benefits tax is generally paid by an employer when certain non-cash benefits are provided to an employee, or their associate, such as a family member, because of the employee’s work. FBT is separate from income tax and is paid by the employer. The FBT year runs from 1 April to 31 March. The current FBT rate is 47% for the FBT years ending 31 March 2023 through 31 March 2027. Providing a benefit does not automatically create an FBT bill. The result depends on the type of benefit, its taxable value and whether an exemption, concession or...