Bean Blog

End of Financial Year Tax Time Guide

March 18, 2024

As we approach the end of the financial year and move into FY25, let’s make sure you know all the last minute tax saving tips and tricks to see you through a seamless year end transition!  We’ve collated a guide to walk you through what actions you need to take and what you need to give us to prepare your annual accounts and tax returns.  In this guide we also highlight some of the important tax changes on the horizon to set you up for success in FY25. The team at Giles & Liew Chartered Accountants are here to guide you through this year end transition, offering essential insights and support.  Let us help you take the stress out of tax time and make informed decisions to save tax and achieve your financial goals.

The Last Minute Cheat Sheet: 12 Steps To Save Tax

As you prepare to wrap things up for the end of the financial year, finish the year strong by following our 12 step guide below to make sure you are optimising the deductions you are entitled to claim, avoiding penalties, and not overstating your taxable income.

1. Contracts

Any retentions you invoice that are payable within this financial year will be classed as taxable income for 2023-2024.  If you are thinking of invoicing retentions that don’t need to be paid until after the end of the financial year, talk to us as your tax advisors first.

2. Employee Expenses

Holiday pay, bonuses, redundancy payments and long service leave owed to employees can be claimed in this tax year as long as they are paid within 63 days of year-end.

3. Expenses

To claim deductions sooner, think about paying for items like stationery or courier charges before 31 March.

4. Bad Debts

Bad debts written off before 31 March can often be claimed as a deduction.  Review your debtors list before the end of March and identify any bad debts.  Keep records to show you’ve taken reasonable steps to recover them.

5. Repairs & Maintenance

To get deductions sooner, finish repair or maintenance projects prior to year-end.  Also think about software development and improvement costs as part of this.

6. Dividends & Imputation Credits

Review your dividend payments (including deemed dividends) for the year by 31 March.  To prevent penalties, make sure your imputation credit account doesn’t have a debit balance at year end.

7. Credit Notes

Keep an eye on credit notes issued to customers after balance date.  You might be able to apply these to invoices in the current tax year to lower your taxable income.

8. Fixed Assets

Consider writing off unused or obsolete assets for deduction benefits.  We’ll ask you to provide us a list of fixed assets that should be written off to prepare your annual accounts.

9. Stock

Dispose of or write down obsolete stock to its net realisable value (the lesser of cost or market value) by the end of the financial year.  If your stock value is less than $10,000 and your turnover is less than $1.3 million for the year, you won’t need to include stock movements for tax purposes.

10. Discounts for Prompt Payment

If you maintain a discount reserve, this might be deductible.  Keep clear records about any discounts.

11. Tax Losses

Are you set to make a loss in the current financial year or do you have tax losses from prior years?  Consult us about carrying forward losses, loss offset elections and subvention payments.


12. Fringe Benefit Tax (FBT) Review

The FBT March quarter is the year’s last quarterly return and will likely require a wash-up calculation.  Plan for the March quarter return and make sure you take into account FBT exemptions.

Common Things Businesses Forget at Tax Time 

Running a business can be quite the juggling act, and it is no surprise that amongst all the chaos, owners sometimes forget key details at tax time…here are some helpful points to know: 

If you are invested in staying updated within your industry through specialised magazines or memberships, you can be eligible for tax deductions on your subscriptions.

Dinner and lunch meetings with clients and customers are partially tax deductible. Remember to keep all your receipts and check with us to see which meetings can be deducted.  Keep in mind that the tax treatment of meal expenses for self-employed people differs from the meal allowances employees are entitled to.  We can clarify the rules for you.

If you work from home, you can claim some of your mortgage interest, rent, rates, utilities and insurance as business expenses. If you use part of your home, like a garage, for work, you can claim that too.  Provide us with details about how much of your home you use for work via our End of Year Checklists in the section below, and you could save tax. 

Make sure you reconcile your bank account balance at year end on your MYOB or Xero accounting software.   This will help you to check whether you have missed anything before your Accountant makes a start on preparing your annual accounts.

You need to keep records and receipts as proof of any of the above expenditure, otherwise you won’t be able to claim any of it.

Collate Your FY24 Documents:  Don’t Forget Your End of Year Checklists

To prepare your financial statements and tax returns for the year ended 31 March 2024, you need to send us a variety of relevant documents.  Our End of Year (EOY) Checklists have been written to guide you through what supporting information we need from you.  You can access our End of Year checklists by clicking the link provided below.  Our Checklists include things such as: 

  • Confirmation of bank balances
  • Loan or HP summaries
  • hRWT certificates
  • Invoices or receipts for new assets purchased
  • Confirmation of closing debtors
  • Stocktake summaries
  • Dividend statements

Looking Ahead to FY25:  Tax Changes on the Horizon

As part of the National-led government’s first 100 days in power, there are a number of tax changes on the horizon that may impact your business and personal affairs.  Here are a few of the key changes we think might impact you.


Interest Deductibility for Mortgage Interest to be Restored

The Government has agreed to restore the deductibility for mortgage interest on residential investment properties.  From 1 April 2024, 80% of interest expenses will be able to be claimed on residential investments, and from 1 April 2025, this will move to 100%.  This change increases the attractiveness of residential rental properties for investors and has significant tax implications for those affected.

Feel free to reach out to us for a discussion about how this change impacts your future investment decisions and tax obligations.


Changes to the Trustee Tax Rate Proposed

Proposed changes to tax legislation to prevent the over-taxation of low-earning trusts has been annouced, with The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill to return for its second reading on 19 March 2024.  As originally drafted, the Bill would require all trusts to be taxed at 39% for the 2024-2025 and later tax years.  The amendments proposed mean that trusts with trustee income up to and including $10,000 (after deductible expenses) would continue to be taxed at 33%, and that trusts with trustee income of more than $10,000 (after deductible expenses) would be taxed at 39%.

Get in touch to discuss how your trust may be affected and for advice about actions to take in light of these proposed changes based on your individual circumstances and requirements.


Auckland Regional Fuel Tax Abolished

Introduced on 20 February 2024, now awaiting Royal assent, the Land Transport Management (Repeal of Regional Fuel Tax) Amendment Bill comes into effect on 1 July 2024 and terminates the 10-cents-per-litre Auckland regional fuel tax.

Strategic tax planning can significantly reduce your tax bills. Staying informed about changing tax rules ensures you utilise deductions and credits, and maximise tax-saving opportunities. Considering the tax implications of financial decisions such as purchasing or selling investments allows you to make informed choices.  Get in touch to discuss how we can help you achieve your financial goals.

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About Giles & Liew Team

Giles & Liew Chartered Accountants, Auckland, East Auckland AccountantsRecognised as industry disruptors, Giles & Liew takes a forward-thinking approach to business growth. We understand the complexities of future-proofing your business for long-term success and the importance of change management throughout your business lifecycle. Giles & Liew has a history of providing innovative solutions grounded in technical accounting expertise to clients to help grow successful businesses.

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