Your website could be tax deductible

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Attention business owners!

Whether PS Online, your highly rated web designer in Perth, is helping you create a new website, revamping an existing one or simply fixing up some of those pesky bugs, you could be in a position to claim some cash back at tax time.

Of course, individual circumstances can vary and PS Online encourages you to always speak with your Tax Agent to get the right tax advice for your business. However, we wanted to let you know what some of the options may be there for you.

Expenditure that is generally tax deductible within the year includes;

  • domain name registration fees
  • server hosting costs
  • ongoing content maintenance (text edits, image uploads etc.)
  • ongoing tech maintenance (security, bug fixes etc.)
  • software with an assessed effective life of one year or less

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In some situations capital costs may be deductible, though over more than one tax year. These include;

  • costs associated with setting up a business before it opens
  • inhouse web development costs
  • software with an effective life of more than a year

If you are eligible to apply the simplified depreciation rules, you may well be able to claim these as immediate deductions before the end of this financial year. Of course, the ATO have plentiful information online and your Tax Agent can shed more light on all things tax.

Finally, here are our top tips to prepare for tax time;

  1. Keep everything. Whether you store your documents in a shoebox or save them electronically, keeping records will make tax time easier.
  2. Make a list of all business-related expenses – anything that ties back to your work, write it down so it doesn’t get missed.
  3. Know the rules. Keep informed on the ATO website, they know it all.
  4. Seek advice from a registered Tax Agent, they will make tax time a breeze.

PS Online are here to support and grow your business online with affordable web design.  

Contact us today to start creating a website that delivers the best possible results, for you. We are also happy to provide free web design quotes that can be forwarded to your accountant for deductibility considerations.

We spoke with Megan from IM Business Solutions in Fremantle, to discuss deductibility and record keeping come tax time.

“When it comes to deductibility for your web design costs, it really relies on what the purpose was to engage that expense. Say for instance, if your website does not have a online sales facility and you are not updating it on a regular basis but only when your business details change – The ATO sees this as the digital equivalent of a permanent advertising hoarding. Thus, in this instance the cost associated with its establishment is a capital cost and is expensed over a 5-year period.

The ATO will then require that a valid tax invoice be supplied in order to make the claim.

Most people begin to stress as we hit June that their tax affairs aren’t in order. But stress not, the deadline for lodging your tax is the 31st October. It’s all about choosing a starting point and working from there. With technologies in our day and age there are so many affordable ways to be able to streamline your record keeping, so you keep the stress at bay when 30th June ticks over.”

Head over to www.imbusinesssolutions.com.au for all your bookkeeping and cloud-accounting needs. They are known experts in their field.

* This information is based on our own research and does not constitute taxation advice. We recommend seeking taxation advice to see what claims you can make towards the end of a financial year.

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Philip Simpson

Owner - psonline.com.au