Many small businesses manage their business to avoid fringe benefits tax using methods such as director contributions to ensure no tax is payable – this method is low cost and pragmatic however leaves an unlimited timeframe open for ATO.
We recommend our clients to complete and lodge an FBT return, even if it is a nil result so as to draw a line in the sand for ATO review period timeframes. Here is the order of the key Fringe Benefits Tax (FBT) services we recommend for you over the coming months:
In April/May 2021 we strongly recommend that we prepare your 2022 FBT Return(including employee declarations) and lodge a 2022 FBT Return for you, even if it has NIL FBT payable. This restricts the ATO to a 3 year FBT audit period – otherwise the ATO can go back an unlimited number of years to audit your business for FBT. Nothing like having peace of mind!
What do we need from you to complete a FBT return?
Your accounts must be reconciled up to 31 March
Please contact us to confirm you would like a FBT return prepared and we will send you an FBT Questionnaire to complete
We will send you our brief FBT Questionnaire for completion. With your information we can work out what fringe benefits you may have provided to employees or Directors and how much FBT may be payable. We then complete your FBT return for your review prior to lodgement with the ATO.
You will use the FBT “reportable benefit” summary information included in our 2022 FBT Report to complete for each applicable employee in your Single Touch Payroll (STP) year end finalisation declaration. This information is required by the ATO so that it can be included in your employee’s year end Income Statements.
The more interest you take in your affairs, the more we can help you succeed
We aim to keep you informed via newsletter, email and phone. However whenever something is on your mind, please contact us for assistance.