The festive season is a great time not to only take a break and recharge the batteries but also take a look at what you have achieved in the first six months of the FY20 financial year. Although for many businesses this is a slow down period, it allows for business owners who are time short to get on top of those tasks which were never done during the busy period.
Taking note on how the first six months have gone is a great way to ensure you change your strategy for the next six months and ensure your business is on the path of success.
However, its not only about assessing your business, its also to relax and take some well time off to rest. Celebrating with family and employees on another year gone. Don’t forget thought for all those small business owners out there it is season to be jolly! However, before you start making spirits bright with gifts and Christmas parties, fringe benefits tax (FBT) may apply when providing all the trimmings.
When considering giving gifts and Christmas parties for employees and clients, consider;
– How much will it cost
– Where and when it is held – a party held on work premises on a normal work day is treated differently to an event outside of work
– Who is invited – is it just employees or are partners, clients or suppliers also invited?
Similarly, where you provide Christmas gifts, you’ll need to consider:
– the amount you spend
– the type of gift – gifts such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event
– who you are giving the gift to – there are different rules for employees and clients/suppliers.
We always recommend to speak to your accountant or bookkeeper if you are not sure of how to handle or know what is a reasonable expenditure for your employees, clients or suppliers.
More importantly have an awesome and safe festive season, recharge those batteries and prepare for an exciting 2020.