The Fringe Benefits Tax (FBT) year ends in March each year. At that time we send out forms to help calculate your FBT liability for the year. But if you have a staff member who receives a fringe benefit leave part way through the year, you may need to them to complete forms before they leave. If they don’t, you might find you have to chase them for signatures months after they have left, or where you can’t get the appropriate documentation, find you have an increased FBT liability.
For example, if you have a staff member that uses a work vehicle they must sign a declaration each year regarding their private use. If they don’t give you the appropriate documents before they leave the benefit may have to be calculated assuming the use was all private, thereby increasing your fringe benefits liability.
The message here is to contact our office if you have a staff member leaving who has received a non-cash benefit during the year – it could save you thousands!