New Charity Rules for FBT

fbt charity rulesFringe Benefit Tax may now be payable on such things as grocery and petrol vouchers etc.  New rules make charities liable to pay FBT if an employee is given any free benefit which is over 5% of their wages or a total of $1200 a year ($300 quarterly) whichever is the lower figure.  The fringe benefit upper limit must also not be exceeded on total staff numbers.

Profit = Volume

Does this make sense?  A trader and his partner were selling product for the same price they paid for it, on realising no profit was being made one suggested increasing the volume of product in order to make a profit.  0 x 0 = 0.  Volume does not always equal a bigger profit, make sure you keep an eye on the bottom line.  We know of firms who, although they have increased their workload considerably, have found they have made no more profit than they did with the previous workload.  Regular account practices can show where the money is going and what can be done to rectify the situation, your yearly accountancy fee may cost a bit more but it could also turn your profit margin around.

The Romalpa Clause

This clause has been included by businesses in their trade terms for some time now (it states that goods supplied remain their property until paid for by the customer).  On it’s own this clause no longer has the impact it used to.  Registering an item on the personal property securities register is now a necessity.