Are you lodging a tax return? – Use a tax agent!
Is it that time of year when you have to file the return? You must be so tensed because there are so many things that you need to consider. And according to stats, it has been observed that almost 74% of people get many problems while filing the taxes. But if you will hire the tax agent Melbourne CBD, you will be able to get any help.
If you want to get the maximum refunds with less stress and increased accuracy, then it is the right decision that you need to take. If you are not an accountant, you may get so many problems, and that is the truth because there is a change every year in our tax system, and if you make any mistake, then ATO will knock on your doors.
At that time, it will not matter whether you are guilty or not, whether the mistake that you are done is small or big, but they will be there for the audit, and you will have to face the consequences. But a tax agent is trained for all these things so you will not have to face any kind of problem.
Benefits of using a tax agent
Here are some of the points that will explain to you that why a person needs the tax agent while filing the return. Some of those benefits are mentioned in the following points-
Saves time- You may have got so many DIY tools for the tax, but nothing is compared to the convenience that you can experience if you will hire the tax agent Melbourne. They will help you get your job done and talk to you about the different matters and do everything to sort that out.
A tax agent has complete knowledge about all these things, and when you sit with them, the professional will ask you some questions, and all you need to do is answer them. In this way, there will be a reduction in the errors, and you will get the work done in an hour.
No stress-If you are hiring the tax agent Melbourne CBD then all the work will be done by them; you do not have to stress about anything. If a person files the tax himself, they have so much stress that what if they do something wrong. And if you have done a mistake, it does not matter whether it is small or big; you will have to deal with the consequences.
So that is why if you choose the right one, then you will be safe and it will easy for you, and all the processes will be stress-free.
Extended deadlines- Hiring or working with the best tax agent in Melbourne does not mean that you will get all the work done without any mistake, but you can also buy time. They have the proper knowledge about finance, and they can give you the best advice that you may not be able to get from anywhere else.
They will make sure that you will get the maximum of your finance and ensure that you should get what you deserve.
Less complex- Over the last 40 years, there has been a lot to learn, and all the tax return that you file is different. In that situation, if you will choose the file the return alone, then that can be very complex for you.
And if you have any additional job or business, then it will add more complexity to the tax, and that is why you need to have a tax agent who will help you out in this situation and give you the right advice at the right time.
Rideshare & Food Delivery Driver Tax: What You Need to Know - Accounts NextGen
Rideshare drivers earn discoverable revenue, as per the Australian Taxation Office. Assume you're a rideshare driver for Uber, Didi, Ola, or a similar company. In this scenario, the assessable revenue is the overall amount of money you make by providing services.
When you rideshare, you of using your vehicle to carry paying customers to their chosen venue. It has risen in popularity as a viable choice for many people who want to be their director. As a result, rideshare drivers are handled similarly to other self-employed people. As a self-employed individual, you should also be informed about properly filing your online tax returns.
As a result, you'll be able to profit from tax deductions related to your company expenses.
Uber and Other Rideshare Drivers Need to Talk About ABNs and GST
You should be aware of the Goods and Services Tax in addition to the income tax return in Melbourne. It has to do with the 10% tax on all products and services you offer in Australia. Here is the quick rundown:
Rideshare Drivers: You must register for GST if you are a rideshare driver. Even worse, you do not fulfill the $75,000 criteria.
Food Delivery Drivers: Food delivery drivers, such as those employed by Uber Eats, should not have to be GST-registered. If your Australian Business Number receives more than $75,000, therefore, you must do so.
When you serve as a rideshare driver and a food delivery driver, you must obey the guidelines that apply to rideshare drivers. It shows you'll have to file a GST tax return in 2020.
Since you're a rideshare driver, you're running a small company, so you'll need an Australian Business Number. This 11-digit number is used to identify your company and is required when you register for GST.
Is it appropriate for you to pay income tax?
Since you make money from your ridesharing service, the rules require you to report your income and file your online tax return correctly. Although it operates in the same way as some other companies, computing your taxable income is simple.
So here are a few simple ideas to help you through your income tax filing:
- Consider your net earnings first before subtracting all other reductions, such as GST points.
- You could get a report of your earnings by contacting the rideshare company.
- Make a list of all the costs you paid.
- Then, from your net earnings, subtract the sum on your spending list, which is now your taxable income.
You will be in the tax-free bracket if your annual income is less than $18,200. It means you are not expected to pay any income tax. However, being in this bracket does not exempt you from filing an online tax return.
If you receive more than the above number, you must pay income tax. Many rideshare drivers in the United States operate similarly to sole traders. As a result, their income taxes are frequently the same as that of private taxpayers.
How Much Are You Willing to Pay in Taxes?
Your rideshare earnings will determine the value you pay. These earnings come from travelers who pay you for your facilities, and you must report them as earnings. In the meantime, you can report as an expenditure all of the money you spend on your ridesharing service.
All of the following elements will be added together to calculate your income:
- Gross fares
- Split fare fees
- City fees
- Airport fees
- Booking fees
- Toll fees
- Tips from passengers
In the meantime, you'll most likely incur the following costs:
- Uber service fees
- Toll fees
- City fees
- Booking fees
- Split fare fees
To measure your taxable benefit, deduct your total expenditures from your profits. Our calculation can assist you in calculating how often income tax you would pay.
It would be best if you Took Tax Deductions.
When it comes to taxes, you shouldn't pay more than you need to. As a consequence, tax deductions must be measured as a step of the procedure. These deductions reduce your taxable benefit, resulting in a lower tax bill. The following are among the most common tax deductions:
Tax Advice for Rideshare Drivers
- Keep a logbook of your car use at all times. The ATO accepts logbooks as proof of how you can use the vehicles for the company. Follow these guidelines:
- The logbook should have 12 weeks of driving reports in it. You can log in anytime you like throughout the year.
- And for the entire session or transfer, only one logbook is needed. Person distribution records are unnecessary.
- Non-business and private trips should never be reported in the logbook.
- From the beginning to the end of the shift, record the date and odometer readings.
Receipts should also be retained. Any receipt, including your bank statement and digital invoices, will be accepted by the ATO. It's a different situation if you're seeking GST credits since the Business Operation Statements has more stringent criteria.
The Accounts NextGen framework is the quickest and most secure way to file your rideshare online tax return 2020. Give us a call or sign up for an account with us right now.
Importance of exit planning in Year-end plans
We all are living in quite an exceptional time and many things have been changed only because of this coronavirus. Our lifestyles have changed tremendously but the laws governing the finance sector has changed even more. As a result of that, a lot of individuals and business owners are having difficulties. Based on all these uninvited circumstances, there is an immediate need of exit planning in the year-end of plans of the businessmen.
There are many questions that a business owner should ask. Only after getting the answers to those questions will decide how important is the role of exit planning? Let us take a look at these vital questions:
- Has the business owner any advantage from the current business structure?
- Does your client’s business structure allows having new ownership?
- Can a flow-through structure like partnership and S corporation be preferable to the C corporate structure and can it get a 21% fatal rate?
Talking of the C corporation, the owner loans should be there in the capital structure. Having this facility is enough to provide withdrawal facilities from such businesses and there will not be any issue with the dividend problems that are related to the C corporation stock.
What is there for the family as Business owners?
The lifetime gifts of business interests for the family versus the testamentary transfers is the biggest issue in this type. At the time of transferring the business ownership to the family, the business and other resources should be considerable. This is the only way to avoid the risk of incurring gift during this process.
This topic has become very important to discuss this year because of the introduction of higher exemptions rates. The current exemption level has been planned to get back on its real position (as in pre-2018) by or even after 2025.
The current transfer rate lies at $11,580,000 per spouse but it is not sure that the same rate will be available once the government changes. You can get more information about the ongoing rates on the official website of tax accountant Melbourne.
How about the buyers?
Year-ends are the best times to consider the potential competitors and other factors so that profit may be enhanced. These reviews are very helpful in identifying the best companies in the market who are able to buy competitors.
What should the owners do?
The owners don’t need to be free in this situation. There are a lot of questions that need to be asked here:
- Can the owner plan to exchange in order to avoid the current gain?
- Is he able to plan his sale of the business in a way so that state tax gain can be minimized?
- How he should plan the realty?
- Can the owner start-up a new industry or a specific phase in his existing industry?
If they are planning to start something new, they should consider all the sources from where the maximum output will be generated.
Conclusion:
All of these concepts may seem unworthy for you if you are looking at them with a short-term perspective. But when you consider the long-term effects of it, you will be able to see the benefits. If you are looking for tax agent Melbourne, Accounts NextGen is there to help you. We provide every kind of accounting and taxation service for all types of businesses.
