Ever heard of the dodgy salesman…
With the EOFY sale buzz, don’t get too caught up in the hype. While there can be benefits of purchasing items for your business at this time of year, be a careful shopper. While part of the sales pitch that gets you over the line may include the enticement of a tax deduction, that new Louis Vuitton handbag isn’t necessarily classed as a ‘laptop bag’ and the replacement dining suite can’t be pawned off as a new ‘board room table’. It is also important to note that a common sales tactic is finance options. You may have heard the words “it’s better for tax purposes” uttered. In some instances this may be true, but you will only have a bigger tax deduction because you are paying more.
Timing is also a factor to consider. The current financial year may not be the year that you need the extra deduction and it may be better to hold off. It’s advisable before making any big purchases to contact our team at HQB Chartered Accountants.
Posted 30 June 2017
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.