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Toolkit designed to help with Covid implications

THE Australian Taxation Office (ATO) has released a tax time toolkit designed to help small businesses and their tax advisers.

The toolkit packages up a series of easy-to-understand fact sheets on topics that small businesses need to know this tax time, especially given the tax implications of Covid-19.
ATO Assistant Commissioner Andrew Watson says it’s a really tough time for small businesses as we all continue to navigate the Covid-19 pandemic, but the ATO is there to help.
“Many small businesses have had a really difficult few months, and we fully acknowledge this. From bushfires to floods to Covid-19, we know times are tough. Small businesses have a long to-do list, and tax obligations are just one of many items that need to be done,” he said.
“We also know that many small businesses rely on and trust the advice of their tax professional.
“Whether you use a registered tax professional, or lodge your own tax return, we hope our toolkit will be helpful when the time is right to sit down and consider lodging your income tax return.”
The toolkit includes a set of fact sheets to help you understand a range of tax time topics, including:
• Home-based business expenses – if as a business owner, you’re claiming deductions for the costs of using your home as your main place of business;
• Pausing or permanently closing your business – if you’ve had to pause or permanently close your business due to Covid-19;
• Motor vehicle expenses – if you’re claiming a deduction for motor vehicle expenses for your business;
• Travel expenses – if you’re claiming a deduction for expenses you incur when travelling for your business and;
• Using your company’s money or assets – if you’re a director or shareholder of a company that operates a small business, and you take money out of your company or use its assets.
“Don’t forget, it’s best to ask for help with your tax if you need it,” Mr Watson said.
“And it’s never too late to speak with us or a registered tax professional if you aren’t sure about something or need a helping hand.”
The tax time 2020 toolkit for small business is available at ato.gov.au.