FBT lodgements made easy: A step-by-step guide to compliance
Handling complex financial paperwork can be one of business professionals’ most daunting tasks, especially when filing and managing FBT lodgements. But it doesn’t have to be!
Whether you’re new to filings or a seasoned pro needing guidance, our FBT Lodgements Made Easy guide will walk you through everything you need to know and ensure your finances stay compliant with the law.
What is FBT lodgement, and why is it necessary for businesses?
FBT lodgement refers to the process of businesses submitting their Fringe Benefit Tax (FBT) returns to the ATO. FBT is a tax payable by employers who provide non-cash benefits to their employees, such as company cars or entertainment expenses.
Businesses must lodge their FBT returns on time to avoid penalties and interest charges from the ATO. Failure to comply with FBT guidelines can result in serious financial consequences.
Ensuring you comply with FBT lodgement annually can be crucial in ensuring the ATO cannot audit the lifespan of your business for as long as its had employees. Lodging your FBT annually, even if there is a zero-dollar balance, ensures that the ATO can only go back three years from the date of lodgement if requesting an audit. Exceptions can occur if the business is suspected of fraud or money laundering.
Therefore, businesses must understand their FBT obligations and ensure their lodgement is done accurately and on time. By doing so, they can stay compliant, avoid penalties and maintain their reputation with the ATO as responsible taxpayers.
How to prepare for FBT lodging?
As the end of the financial year approaches, businesses must prepare their FBT lodgment.
First, ensure accurate records of all fringe benefits provided to your employees throughout the year to make filing easier. It’s also important to keep track of any changes in legislation relating to FBT. Preparing for FBT lodgment can seem overwhelming, but with a little effort and organisation (and a good accounting firm by your side), your business will have no trouble complying.
The benefits of using professional tax advisors when making FBT lodgment
When making an FBT lodgment, it’s always best to seek the advice and guidance of a professional tax advisor. The are several benefits to using a professional tax advisor:
- They can help you navigate complex tax laws
- Ensure that you are meeting all your obligations
- Help you minimise your FBT liability
They understand the intricacies of the FBT system and can offer insights and strategies that will help you make informed decisions about your tax obligations. With their expertise and knowledge, you’ll be able to save time and money and avoid costly mistakes on your lodgement.
Tips on keeping your records up to date for FBT lodgement
As a business owner, you must stay on top of your financial record-keeping to ensure a smooth FBT lodgement process. Utilising these tips can help in completing an accurate FBT lodgement.
- Schedule a regular time each week or month to update your records. This consistency will make it easier to maintain accurate data and prevent any last-minute scrambling when it’s time to lodge your FBT return.
- Keep all relevant receipts and documents organised and labelled appropriately for easy reference. This way, you can easily trace back any expenses and transactions to ensure they are classified correctly during the FBT lodgement process.
- Prioritise accurate record-keeping practices, and you’ll save yourself time, stress and potential penalties down the road.
Navigating the ATO portal for submitting FBT lodgements
Navigating the ATO Portal for submitting FBT lodgements may seem challenging for many businesses. However, it is essential to understand the process and avoid potential penalties.
To navigate the portal efficiently, businesses need to understand the specific requirements, including deadlines and FBT categories. Seeking advice from a tax professional, attending information sessions, and using the ATO Portal user guide can also assist in navigating the portal with ease.
Ultimately, taking the time to understand and navigate the ATO Portal for submitting FBT lodgements can provide businesses with peace of mind and ensure compliance.
While FBT lodgment can be a complicated and time-consuming task, especially if you are new to the process, our step-by-step guide to compliance for FBT lodgement will help you be well on your way to achieving total compliance with ease. We can help you ensure that your business remains compliant and efficient against the legislation.
About Sphere Accounting & Advisors-
If you are seeking tax advice, your search ends with Sphere Accountants and Advisors. We consider the complete picture and continually look for ways to improve your financial situation to create, protect, and grow your wealth. We apply this approach whether you come as an individual or a business. With a breadth of expertise spanning all aspects of taxation, accounting, financial planning, and more, we can offer a complete solution for all your financial needs.
Visit our website, call us at (03) 8899 6399, or email us for more details.