Are you aware of the benefits of lodging an FBT return? According to recent statistics, approximately 20% of businesses in Australia are liable for Fringe Benefits Tax (FBT), but only 70% of those businesses lodge an FBT return. This means 30% of businesses are potentially missing out on the benefits of lodging an FBT return. Here are four reasons you should lodge an FBT return and how it can benefit your business:
1. FBT is compulsory.
You must lodge an FBT return if you are an employer and provide non-cash benefits to your employees (including directors). This is because FBT is a tax on the value of your employee’s non-cash benefits. The value of these benefits is calculated at the end of each financial year by multiplying their cost by a percentage that reflects how employees use them.
2. Demonstrates Good Governance
Lodging an FBT return demonstrates transparency and good governance within your business. It reflects your commitment to complying with tax laws and fulfilling your obligations as an employer. This can enhance your business’s reputation and credibility, which can be crucial when dealing with clients, partners, and investors. Moreover, by engaging professional payroll services in Melbourne, you can streamline the process of FBT reporting and ensure accuracy and timeliness.
3. The ATO is your tax partner.
The ATO is your tax partner. The ATO wants to help you get it right the first time, and they will assist you with any questions or issues that may arise during this process. If you need help completing an FBT return, many resources are available to help guide you through the process. By availing of professional accounting and taxation services in Melbourne, you can accurately calculate and report your fringe benefits accordingly. FBT returns help maintain accurate records, which is essential for meeting your tax obligations and avoiding penalties or audits.
4. Avoid overpayment and interest.
You need to lodge your return by the end of each quarter. If you don’t, you may be overpaid and charged interest on that amount. The rate is up to 10% for the first 30 days, then 5% monthly. To avoid this, lodge your FBT return as soon as possible so it be processed quickly.
If you lodge late or not at all, there are penalties too: you will be charged $50 per month until your return is lodged; after that, $10 per day will be charged until you lodge the FBT return.
Contact Ace Biz today for expert FBT advice and services!
Lodging an FBT return can provide numerous benefits to your business, including reducing your tax liability, increasing employee satisfaction, and improving your business reputation. Take advantage of these advantages – contact Ace Biz for expert bookkeeping services in Sydney. With our comprehensive accounting and taxation services, business analytics and intelligence analysis, and SMSF services in Melbourne, we can help you navigate the complex world of FBT and ensure that your business is compliant with all relevant regulations.
Contact us today for top-notch tax advice and small business bookkeeping services in Sydney and Melbourne!