5 Top Tax Tips for Individuals – contributed by Enlightened Accounting
#1 Don’t Rush
The ATO has a lot of data matching capabilities, the majority of your employment income, bank interest, share dividends and private health tax statements will be available for your to prefill into your tax return by mid-late July. Investment fund, property sales and many other data reminders are also data matched and once the ATO has the information, it will be available to you and your tax agent to use to assist in correctly preparing your return. If you lodge too early your return may be delayed if the ATO is expecting these items in your return. If you’re not sure on any item, be patient and wait until the correct data is available to avoid an unexpected ATO delay or amendment to your return.
#2 Working from home diary
Many people are now working from home for some of their working week. Make sure you have your diary ready to show how many hours you have worked from home. This may be in the form of timesheets required by your employer or a calendar where you have made notes of which days and times you were working from home. This record will be vital if the ATO asks for evidence of your deduction claim.
#3 Vehicle Logbook
Do you use your car for work? A new logbook is required when your circumstances change. With the global COVID pandemic the ATO is expecting that most people’s circumstances will have changed. If you haven’t kept a new logbook this year, then be sure to start one now!
#4 Don’t Copy and Paste
In 2021 tax returns the ATO will be on the lookout for deductions that have been ‘copy and pasted’ for your previous return. Again, the ATO is expecting that most people’s circumstances have changed so using the exact same deductions as last year may flag you in a high chance of ATO audit.
#5 Use a Registered Tax Agent
Be aware that only a registered tax agent is legally allowed to charge a fee for tax advice and tax return preparation. You can check if your agent is registered by looking for their Tax Practitioner Symbol or by checking the register at https://www.tpb.gov.au/registrations_search. If you have any questions or need help with your return, please speak to a registered tax agent, they have a wealth of knowledge ready to assist.
Enlightened Accounting can come to you, with weekend and evening appointments available. Individual Tax Returns start from just $120. Contact Zara on 0448844971 or firstname.lastname@example.org
Thanks for taking the time to read my 5 Top Tax Tips for Individuals, you can read more about me in the Members Directory
A Night of Celebration! Wanneroo Business Association was proud to host the City of Wanneroo Business Awards 2022 on Friday evening, celebrating and acknowledging...