Common Tax Mistakes to Avoid
Photo by Jakub Żerdzicki on Unsplash
EOFY can be a time of stress or of anxious anticipation. Will you score a decent enough tax return to help fund for your overseas holiday? Or will you plunge to the depths of despair upon receipt of an unexpected tax bill?
GPP can help you avoid some of these common tax mistakes, thus reducing your paracetamol bill.
Filing Late: Missing the tax filing deadline can result in penalties and interest.
If you file your own tax return, the deadline is October 31.
If a registered tax agent files your return, the lodgement date is May 15. That gives you an extra 7 months to prepare all your receipts and documents.Maths Errors: Simple calculation mistakes can lead to incorrect tax liabilities. At GPP, we use professional accounting software to minimize errors.
Missing Forms: Failing to include all necessary forms can delay your return or trigger an audit. The GPP team will help you with all the necessary documentation and then lodge your tax for you. Easy!
Incorrect Personal Information: The GPP team will ensure that your name, TFN, and address are accurate on your tax return, so you can forget about complications.
Neglecting Deductions and Credits: The tax savvy team at GPP knows all the deductions and credits you qualify for, so you won’t end up paying more tax than necessary.
Filing Status Errors: We’ll choose the correct filing status for you, as it can significantly impact your tax liability.
Not Reporting All Income: Failing to report all sources of income, including freelance work or side gigs, can lead to penalties. We’ll report everything accurately, to relieve any headaches.
Rushing Through: Taking your time to carefully review your return can prevent mistakes.
Not Keeping Records: Failing to maintain adequate records can complicate your return and create problems if you’re audited. Keep documents organized and accessible. And are you aware that you need to keep receipts and for 5 years?