Deferring Income and Prepaying Expenses

Bearing in mind your cash flow position, you may wish to consider deferring income and prepaying expenses.   You should keep in mind your tax bracket for both financial years to ensure you are not taxed at a higher rate on the deferred income.

If you return income on a cash basis, you are assessed on income as it's received.   A simple end of year tax planning strategy is to delay (if possible) receipt of the income until after 30 June 2017.

Small business and individuals are also able to prepay expenses and, subject to a few rules, immediately claim the expenditure as a tax deduction upfront. 

For more information please talk to us today.

Any advice in this article has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on any advice, consider whether it is appropriate to your objectives, financial situation and needs.