IPA
J N Hartcher
Accounting & Taxation Services
Venue for the 2022 The Open at The Old Course, St. Andrews


COVID and Tax Return Options

Other than make an appointment, existing clients may choose to email Tax Return information with authority to prepare and then digitally exchange documents for signing.

With this option clients are reminded that If you are entitled to claim a work related expense as a deduction, then you should claim it, but no more than your entitlement.

To claim Telephone, Internet and Data expenses you are required to have maintained a record of use for a 4 week period to determine a work related portion to substantiate the claim.

ATO Guidelines now require new clients to provide appropriate proof of identity.

See Work Related Deductions


Pandemic Leave Disaster Payments

If you received these payments when self isolating or caring for someone in isolation these payments are Taxable and must be included in your 2022 Income Tax Return.

You will not receive an Income Statement for these payments and they will not be available via ATO pre-fill.


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ContactServicesTax Return OptionsDirector IDTrusts S100ASingle Touch Payroll Tax 2022Instant Asset Write-OffHELP Repay RatesIncome Tax RatesProfile

FOOTY COMP



Services

   ❁  Income Tax Returns

   ❁  Accounting

   ❁  Small Business Consulting

Appointments are available from 9am to 5pm on weekdays excluding Bank and Public Holidays. After hours appointments can be arranged, where possible.





Director ID

From 1 December, 2021 all Company Directors must have a Director ID. Applicants must apply for it themselves using their MyGov Account. Refer to instructions via this link: Apply for a Director ID





Trusts Section 100A Explained

Commencing from the 2021-22 Income Year, Trusts may be subject to Section 100A when Reimbursement Agreements apply. Refer to Section 100A management via this link: View:




Tax Return Options

Rather than make an appointment, existing clients may choose to email Tax Return information with authority to prepare and digitally exchange documents for signing.

With this option clients are reminded that If you are entitled to claim a work related expense as a deduction, then you should claim it, but no more than your entitlement.

To claim Telephone, Internet and Data expenses you are required to have maintained a record of use for a 4 week period to determine a work related portion to substantiate the claim.

ATO Guidelines now require new clients to provide appropriate proof of identity.

See Work Related Deductions



Single Touch Payroll

Closely held payees i.e. Family Companies with Directors as the only payees, will have reporting options.

9/2/2021 - The ATO has confirmed that STP reporting for closely held payees will commence from 1 July, after it had granted these employers a one-year exemption in the midst of the pandemic last year.

Guidance released by the ATO on Monday has revealed that small employers can report payments to closely held payees through STP in three ways: reporting actual payments in real time, reporting actual payments quarterly or reporting a reasonable estimate quarterly.

The first option, reporting actual payments in real time, is in line with how employers would report information on their arm’s length employees through STP on or before each pay day.

The option to report actual payments on a quarterly basis will be due on or before the due date for quarterly business activity statements (BAS).

The final option to report a reasonable estimate quarterly will allow employers to report quarterly amounts that are equal to or greater than 25 percent of the payee’s total gross payments and tax withheld from the previous finalised payment summary annual report (PSAR).

‘A game changer’

The Tax Institute’s senior advocate, Robyn Jacobson, said that while the option was welcomed, tax practitioners would need to carefully consider the implications for clients who commonly determine salaries, wages or directors’ fees after the end of the financial year.

“For those who have for many years ascertained salaries, wages or directors’ fees to closely held payees post-year-end and either amended their BAS or just dealt with the tax obligations upon lodgement of the individual tax return, this is a game changer,” Ms Jacobson told Accountants Daily.

“The ATO will not impose any failure to withhold penalties as long as you have complied with this reasonable quarterly estimate.

“There would, however, be general interest charge, and if you have not met your SG obligations, which in this case would be 28 July, then there would be SGC liabilities.

“What this does is allow a concessional approach to reporting the information through STP, and as far as PAYG withholding is concerned, you have got the ability to adjust post-year-end subject to the imposition of GIC.”

While a finalisation declaration for arm’s length employees is required by 14 July each year, the ATO will allow employers with closely held payees up to the due date of the payee’s income tax return to make a finalisation declaration.

The ATO also notes that STP reports will need to be lodged through an STP-enabled solution, and cannot be lodged through the ATO portals or through a BAS.

Reference: Accountants Daily



Tax 2022

Overview of Tax changes for 2022 view



Instant Asset Write-Off

New or Second hand Plant and Equipment purchased prior to June 30th will qualify for the Small Business Instant Asset Write-Off.

Acquisitions must be below the threshhold at the time of purchase which was $30,000 until 12th March and increased to $150,000 from that day until 31st December, 2020 for new or 2nd hand acquisitions.

From 6 October 2020 till 30th June, 2023 temporary business expensing allows a deduction for the cost of the business portion of eligible business assets.
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Profile

JH   I commenced my Accounting Profession with a prominent firm in the Newcastle CBD and remained there from 1971-1985.

Eventually I moved on and opened my own Practice in downtown Raymond Terrace where I remained from 1986-1999.

In 2000 I relocated the Practice to a Home Office where my focus is now Small Business Accounting/Consulting and Taxation Services.

And there but for the grace of God, I still remain.

I have been using my own accounting software The WorkBench Delphi since the mid 1980's and it is now used by many of my clients.

The package was purposely written with simplicity of use in mind and users rarely require assistance. Remote assistance is available for those who may.



HELP loan repayment rates: View


Tax

Resident Tax Rates 2021-22

Taxable income Tax on this income
0 - $18,200 Nil
$18,201 - $45,000 19c for each $1 over $18,200
$45,001 - $120,000 $5,092 plus 32.5c for each $1 over $45k
$120,001 - $180,000 $29,467 plus 37c for each $1 over $120k
$180,001 and over $51,687 plus 45c for each $1 over $180k

These rates do not include the Medicare levy of 2%