Important Changes to Annual Leave
If your activity statement is delayed it may have been to check that you haven’t claimed a personal expense as a business expense. When claiming GST credits remember:
- you can only claim a GST credit for goods or services used in your business
- if you have goods or services you also use for personal purposes, you can only claim the business portion
- you need to keep track of the business portion using the logbook method
- for purchases over $82.50 including GST you will need to keep tax invoice
- Some typical expenses that can include business and personal use are:
- motor vehicles
- domestic air travel or taxi travel
- mobile phone and internet communication
- home-office furniture.
To complete your activity statement correctly, make sure you portion your expenses. For example, if you use your mobile phone 80 per cent of the time for business and 20 per cent for personal purposes, then you can only claim 80 per cent of the GST you pay on your mobile phone bill.
Contact us today to learn how to use you MYOB correctly to claim GST.
The information provided here is of a general nature for Australia and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’s circumstance will vary for end of financial year.