The tax year ends on 30 June. Once this date has passed the tax outcome for the year crystallises and transactions cannot be backdated. For this reason, all businesses should embark on a tax planning exercise before the year ends. Tax planning is simply a process of estimating the tax payable for a year and then developing strategies to reduce the tax before the year ends.
At Elevate we insist that all of our business clients undertake tax planning (we don’t accept clients who don’t!). Our process for tax planning involves:
- – Preparing year-to-date financial figures for either March or April
- – Estimating the Profit or Loss for the remainder of the financial year
- – Ascertaining the likely tax outcome if ‘nothing else changes’
- – Identifying opportunities to reduce tax, using legitimate strategies
- – Quantifying the cost and benefit of each strategy
- – Implementing the chosen strategies before 30 June
The ability to quantify and select planning initiatives before the year-end gives Business Owner’s the chance to minimise their tax before the year ends. Want to minimise your tax? Give us a call and we’ll book an appointment.