For Accountants in Practice, there has never been a better time to add “FBT Service Line” to your services and clients offerings…
Why add a FBT Service Line?
- If you have clients who employ people, then your client will likely have FBT obligations. Importantly, certain FBT Services are appropriately tailored for Individual (Employee) clients
- You already know your clients and their businesses well
- Easier to sell to your existing client base
- You probably already have great visibility on their financial data and transactions
- There are Income Tax and GST implications in relation to certain fringe benefits that should be addressed – in particular Luxury Motor Vehicles, Employee Contributions and Entertainment
- There are many myths and misunderstanding around FBT, and in particular the rules for claiming exemption on Work Related / Tool of Trade Vehicles
- An FBT Service Line offering is really “low hanging fruit” revenue, ripe for the picking
- Too many Accountants and Employers think FBT is mainly Cars and Entertainment – the FBT law contains 13 defined fringe benefit categories
- Electric Vehicles and the New FBT Exemption is a hot topic – now is the time to engage with your clients
- FBT Services range from Compliance, to Advisory through to many Opportunities for Employers and Individuals (Employees)
- The ATO are encouraging Tax Practitioners to engage with their clients on FBT
- The ATO are conducting Small Business FBT Audits as part of their goal to close the $1billion FBT gap – time to get on the front foot with your clients
- The low hanging fruit in FBT Audits is Motor Vehicles. The ATO are data matching motor vehicles registered in business names with ATO records – those businesses that are not registered for FBT may be contacted by the ATO to please explain – Tax Practitioners should act before the ATO commence an FBT Audit; and
- The FBT law provides many exemptions and concessions that your clients can access either directly of via salary packaging – there are a wide range of Advisory and Opportunity areas to discuss with your clients
Now is the right time
There has never been a better time to engage with your clients (and new clients) in relation to FBT. The ATO want Tax Practitioners to engage with their clients on FBT.
The facts don’t lie. The ATO want to remove the registration / compliance blockers that exist for Small Business Employers and their Tax Practitioners.
When an Employer owns or leases, even a small number of motor vehicles (and has not considered FBT previously), the FBT liability exposure can quickly run in to tens of thousands dollars or even hundreds of thousands dollars over multiple FBT years – plus penalties, interest and FTL. We are seeing ATO FBT Auditors requiring FBT Returns to be lodged going back 3 to 4 years.
How can we add a FBT Service Line?
If your not sure about FBT from a technical and service line perspective – we have the answer for you.
Our FBT Service Line webinar series provides your firm with the knowledge and understanding to implement an FBT Service line or enhance your existing FBT Service line.
Complete the short questionnaire by clicking on the link below. We will then contact you to discuss further.