With 30 June fast approaching, you should be planning for your annual tax lodgement. Sometimes, individuals or businesses lose hundreds (if not thousands) to tax because they aren’t aware of certain things that can be claimed back. At the same time, it’s easy to miss declaring different income streams, which can come back to bite you in the future.
At the end of the day, by being proactive and working with an accounting advisor you trust, you can make sure you’re both compliant and smart when it comes to your tax planning strategies. Let’s explore the keys to successful tax planning strategies and dive into more tailored advice for individuals and businesses.
Why Should You Consider Tax Planning Strategies?
It’s a popular belief that you just have to pay the tax. You earn the money, you pay the tax. And while that’s true to an extent, what we often discover as business advisors is when we’re engaged to do a client’s tax return preparation, it’s too late. With more planning, we could’ve assisted the client to achieve a better tax outcome.
Tax planning is a way for us to assist you by analysing your financial position and preparing a plan to ensure all elements work together to allow you to achieve your optimal tax position.
What Does Tax Planning Involve?
Firstly, we analyse your financial situation before the end of the financial year as part of our discovery process. We then prepare a list of actionable items and recommendations for you, which we discuss in person so you’re across the ins and outs of what the various tax planning strategies mean. You then make a decision on our recommendations, and we execute the plan.
When is the Right Time for Working on Tax Planning Strategies?
The discovery process can take a bit of time, and this depends on the size of your business. We generally start with tax planning around May or June each year. The earlier the better, to allow some time to effectively implement the recommendations.
Tax Planning Strategies for Businesses
We understand that all businesses have their own circumstances; however, there are several tax planning strategies for businesses that can make all the difference when it comes to preparing a business tax planning strategy for your end of financial year tax lodgements.
Tax Planning Strategies for Individuals
Personal tax (or individual tax) is based on your wages, salaries, and any other form of income such as capital gains from cryptocurrency or stocks. When undertaking tax planning strategies for individuals , make sure you’re across the concept of declaring income that you haven’t already paid tax on and how to maximise your tax return so you can claim back money that’s yours.
Get the Support You Need to Maximise Your Wealth Through Effective Tax Planning Strategies
No matter what your circumstance is as a business or individual, there are different points you should consider to make the most of your tax return. Whether that relates to your general business tax planning, individual income tax or superannuation, BlueRock's business advisors can help make tax time less of a burden for you.
If you’re ready to maximise your income tax for FY22, get in touch with one of our accountants now .
