Do You Need Professional Help Lodging a Tax Return?

Posted on: 18 December 2020

The fact is that the vast majority of ordinary Australians do not need any professional guidance with lodging a tax return because all of their tax issues are already sorted out for them. This is because of the pay as you go (PAYG) system that is in operation for nearly all employed people. However, if you are self-employed or generate a private income from another source, such as rental payments you receive from a property you own, then you will need to fill out your tax return and lodge it with the Australian Tax Office (ATO) each year. This is when a taxation consultant can be so beneficial. Why?

Meet the Deadline

Many people who know they need to lodge a tax return by the end of October still struggle to complete it on time. Of course, it will often depend on the complexity of your incomings and outgoings but filling in a self-assessment is not always easy and it can often take more time than you might have bargained for. Every year, many Australians miss the deadline or are unable to carry on with their usual working practices because they are bogged down trying to meet it. This is where a taxation advice consultant will come into their own, ensuring you can continue to work while taking care of the details of your return to ensure it is filed on time.

Avoid Errors

Not everyone who works for themselves is an expert with bookkeeping or accountancy. For this reason, it is easy to make errors with tax returns, especially when you have already paid some of your tax through the PAYG system. If you make mistakes on your return, then the ATO could start an investigation into your business affairs which would be very time-consuming and costly to sort out. To avoid accidental errors which might look like tax evasion, hiring a taxation consultant to oversee your return will make a great deal of sense.

Don't Overpay

One of the big problems many taxpayers have when they lodge their return is that they do not always understand the tax breaks and allowances that are permitted. If you don't know about them, then you cannot take advantage of them. Again, a taxation consultant will be able to help you maximise the potential of these allowances and ensure that you don't end up paying more tax than you really should. In this regard, tax consultants can pay for themselves thanks to the money they save you.

For more information, reach out to a taxation consultant in your area.