By admin | 11 June, 2015

COMMON TAX MISTAKES

Do you have outstanding tax returns that need lodging? Do you have ATO debt that needs to be paid? Are you missing receipts that you wanted to claim? Below are some simple solutions to help make your tax dealings easier.

Lodging on time

Many Individuals fail to lodge their individual tax returns by the due date. What they don’t realise is that a penalty may arise from late lodgement and interest may be charged from the due date to the date of lodgement. A penalty from the ATO can range from one unit ($170) for each 28 days that a return is overdue to a maximum of five units ($850). If you have outstanding returns and aren’t too sure what paperwork you need, Optima Partner provides a CHECKLIST to help you get organised!
Paying debts

Many find tax payable inconvenient and troublesome. Individuals can easily enter into payments arrangement to pay off the debt within a 12 month period, depending on your circumstances. This can simply be arranged with the ATO over the phone and a direct debit can be set up to allow easier payment.
Keeping records

Keeping tax invoices and receipts are something we all struggle with. What’s worse is keeping a receipt for a year to find it has faded by the time you prepare your tax return. There are many apps and programs that allow easy processing of your expenses such as Receipt Bank, Shoeboxed and Invoice Smash. Other easy solutions include: taking a photo with your smart phone, paying expenses by EFT, debit or credit card to ensure proof of purchase can be obtained or even give suppliers an email address to electronically send you a copy of a tax invoice. Ensure to keep all records and copies of your returns for a 5 year period (from the date of lodgement of your tax return). Keep it in a file, a cabinet, a shoe box, scan it into your computer, take photos or anything convenient that allows safe storage for 5 years.