Writing your car wraps off your taxes
That's right! It's that time of year again. Happy EOFY's to all the business' out there. This time of year has made me decide to write up a helpful little article on tax deductions for vehicle signage. And yes, you can rejoice! Vehicle signage can be written off on your taxes. So don't forget to run off to your accountant, or if you do your own taxes, then take note. As all small business owners are aware of, a lot of things can be written off on taxes, such as fuel, tolls and other vehicle related expenses. But, little did you know, that your advertising can be used as a tax write off! That's right, the little stickers you had attached onto your work vehicle can be a massive benefit to you come tax time. Since the costs are placed as a burden on your business, they can be written off as a business expense. But, there are some limitations. I'll go through some of the requirements needed to write off your stylish signage from your taxes, keeping the money in your pocket and out of the greedy government.
1) Don't pay cash
I think it goes without saying that paying cash will never give you proof of purchase. Especially with us, where we are not able to provide people with receipts if they handed over cash payment for jobs. So you may ask yourself, why would people pay in cash for something they can write off if they have proof of purchase? Well, many people opt to avoid the 1.1% surcharge we, regretfully, have to apply onto any and all cash payments. Because of this surcharge, business prefer to hand in cash, but this is often very rare, and vehicle owners know that a proof of purchase will help them recoup the money that they spent on getting vinyl signage attached to their vehicles.
2) Pay with card!
Building on from the first requirement, many small business' owners encourage the use of cards and credit cards when making business related purchases, and even everyday purchases, as stuff that can be used on a relative basis can be turned into a great way to earn a healthy tax back cheque, such as coffee, or even food. These are a great way of adding up your receipts, and ensuring that you have a healthy collection of 'work expenses' that can be claimed back.
3) Keep Those Receipts
We've all seen that pile of receipts people keep. Whether they were stacked neatly, alphabetically and/or numerically, or maybe they were just chucked in the back of your desk, or car, or filing cabinet. These receipts are the key to ensuring your guaranteed spot on the governments tax back list. And there's even more good news! Don't worry if you lost the receipt for that business purchase made 8 months ago. With today's electronic payment methods, all transactions are kept on storage, and so you can easily go back to the shop and ask for a copy of the receipt. Trust me, if I had a penny for every time someone called up wanting to get receipt for payment made on vehicle signage, I'd be retired on a mega yacht, sailing around The Maldives.
So, in essence, learning to be crafty with what you use business credit and/or debit cards can help you gain a lot of tax back, and especially with expensive things such as advertising and signage. With only a few weeks to go, make sure you get your taxes in order and head off to your accountant. It's also a great time to go out and do what needs to be done for your business signage, all so you don't have to wait for the next financial year!