For a while there, we were producing a new COVID-19 update at least once a day. Now things are settling down, we thought it might be timely to remind you of a few changes which might be useful this year.
You can write off up to $5,000 worth of assets instead of capitalising them
This means if you buy something now, you can write off the whole amount against your taxable income instead of having to depreciate it over a number of years.
This significant change will end on the 16th of March 2021. You get tax relief of up to $1,400 in this financial year.
Change in the Provisional Tax Threshold from $2,500 to $5,000
This sounds a bit boring – but can be a game-changer as it means you won’t have to pay any provisional tax this year if your terminal tax for the 2020 year is less than $5,000. This may be an incentive to get your accounts done quickly if you think you’re close to this threshold.
Do you own a commercial building?
Depreciation of 2% is back for commercial properties which again can reduce your overall tax bill.
A raft of Other Concessions
There are a bunch of concessions around the timing of tax payments, relaxation of insolvent trading rules, tax losses and continuity rules so make sure you are working with a tax professional to make the most of the COVID-19 tax changes.
We are here to help at Beany – if you need help or just want a chat firstname.lastname@example.org