Top 5 Reasons NOT to do your own Tax Return
top 5 reasons not to do your own tax Jul 17, 2016
As Australians we have been brought up with an attitude of "having a go" and it works in so many situations, you'll never know unless you have a go. Situations like asking someone for their instagram handle, applying for that promotion, offering a lower price for your coffee and cronut, entering the $60m Lotto draw or even starting your own business. However when it comes to tax returns there is a massive difference between having a crack and getting a great result with peace of mind. Here are our top 5 reasons not to have a crack.
#5 Myth: No receipt = no claim. However the question should be "can you prove that you purchased that?" If you have the item, and you can show the money came from a bank account and to who, then you have proof of purchase. Hundreds of dollars of claims can go by the wayside if the right questions are not asked.
#4 If you did your tax return last year and there were no dramas, you must have done it correctly right? Possibly. The ATO are currently sending out letters to individuals offering them the opportunity to rectify their returns as it appears that their work related expenses are higher than the average for their demographic and occupation. If you did you own return last year, then it makes sense to have someone like MAD Business do your return this year and review the last 2 years.
#3 Strapped for cash? Desperate for your tax return? No time to stuff around answering questions? Well you are just setting yourself up for drama. There is a good chance you will either claim too much or not enough, miss something or data enter something wrong, in any case it is probable it is going to cost you money. More than it costs to use a tax professional. Fee from refund is a great option if you are unable to pay at the time of lodgement or up front and most tax professionals offer this. At MAD Business it is an additional $40, which we include when we deduct the fee from your refund. More often than not, the total fee is outweighed by an increase in refund. Yes you can afford a professional.
#2 Lack of knowledge is the cause of most stuff ups when it comes to lodging your own tax return. "I didn't know you could claim that" or even worse "I didn't know you couldn't claim that", can have real impact on your financial life, particularly if you have done it for a number of years. You could have a cash cow of thousands or worse owe thousands. Some of the ATO online questions require prior knowledge of the rulings, else they can sound ambiguous or confusing. Wrong answers, omitting data often mean repaying the ATO at a later date. It is a big risk when you don't know what you don't know.
Individuals are fearful of when they lodge their returns by themselves is that their refund is delayed because they have done something wrong. They say to themselves as they hit the submit button, "hope that's right!". But hope is not a strategy. A tax professional offers that peace of mind, that it has been checked and is right and that you do not have anything to worry about, even in the event of a tax audit. At MAD Business we review your data, optimise your refund, lodge it and the support you for the next 12 months, even if you do it online. We really do have your tax back.