Home – New Forums Starting your journey Best to start business before or after June 30th?

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  • #978187
    mat.t
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    Hi, im looking at starting up an e-commerce store soon. I understand for an established business you should bring expenses forward. What about for starting a business, would it be better for my tax return if i have all the startup costs before or should i wait till after june 30th?

    thanks.

    #1105286
    Steve_Minshall
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    Hi Mat,

    I don’t think you have had any answers yet because this can depend on a lot of factors and is therefore difficult to give advice on. However I can point out some things that may impact on your decision.

    • Capital expenses: if you use a simple tax system you can write off capital expenses by 30% in year of purchase (15%/year then on) so it may be worth claiming that expense instead of waiting a year
    • The maximum expense that can be expensed immediately is changing from $1k to $6.5k next tax year so it may be beneficial to wait if you have expenses up to this amount.
    • Do you have an expectation of high tax this year from income from the work done elsewhere and could do with reducing it with business losses
    #1105287
    Geronimo
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    I’d suggest that unless you have a team behind you, the extra personal burden of completing a tax year for a matter of a few weeks work, just wait.

    There will be a mountain of things for you to be putting energy into, don’t create another one if you don’t have to.

    #1105288
    Ashman
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    mat.t, post: 116789 wrote:
    Hi, im looking at starting up an e-commerce store soon. I understand for an established business you should bring expenses forward. What about for starting a business, would it be better for my tax return if i have all the startup costs before or should i wait till after june 30th?

    thanks.

    Wait until next financial year, so you don’t have to worry about accounting records and rolling over into a new period.

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