Let’s face it. Nobody likes to pay tax. As a Tax Agent I know that and I understand. That’s why its important to maximize your deductions and minimize your tax. Being wise in your tax affairs helps reduce your tax burden. There are simple things you can do to ‘beat’ the Tax Man, and I’d love to share these tips with you;
1. Lodge on timeThis sounds really simple, but lodging on time makes a huge difference with the ATO and other government agencies. If you prepare your tax yourself you have until 31st October to Lodge. If you use a Tax Agent you get an extension until March or May the following year. However, if you receive benefits of any kind, the earliest the lodgement the better. If you lodge late you could face penalties and interest charges, and it may also affect your compliance history later. For example, if you lodge late a few years in a row, you will more likely receive a penalty.
2. Keep good recordsFor this tip good records doesn’t mean categorized, with highlights, and labels etc. I just mean keep as many receipts as you can, keep them all together and have them ready for me for your return.
3. Know what you can claimUnderstanding what you can claim is important as this could reduce how much tax you pay and effectively ‘beat’ the tax man. This doesn’t mean you need a tax law degree, but having a good tax agent to chat to, one that provides good guides on what you can claim.
4. Manage your tax debtIf you have a tax debt from a previous financial year, or maybe even a previous business it’s important to manage your debt to ensure the ‘tax man’ likes you. Negotiating a payment arrangement to pay off the debt is a good idea, and paying it on time will help your compliance history.
5. Be friends with your Tax AgentTax & Accounting can be daunting and stressful. That’s why you should keep it simple by getting help from a professional like me. I’m not saying this to increase my income, but because I hate seeing clients tremble when they hear the word tax. A professional will take less time to complete those tasks you hate, giving you more time to do what you love. I’m here to help and frankly I love talking tax! If you need more help to ‘beat’ the tax man send me a message today. I’d love to hear from you.