Be cautious: The ATO encourages individuals scuffling with their tax commitments to hunt recommendation.
It wouldn’t be tax time with out some well timed warnings from the Australian Taxation Office to taxpayers and this 12 months has not been an exception.
The ATO is warning taxpayers they danger any tax refund being delayed or having their return adjusted in the event that they lodge a tax return earlier than their revenue assertion is marked as ‘tax ready’.
ATO assistant commissioner Tim Loh mentioned the ATO noticed extra errors in early July as individuals rushed to get their tax returns carried out.
“You can lodge on July 1, but you are punting with your tax return by risking delays to any refund you are owed,” he mentioned.
“If you neglect to incorporate every part, you could find yourself answering questions from the tax workplace.
“We pre-fill among the data in your tax return that will help you to get it proper the primary time.
“We pre-fill data reminiscent of your wages, medical insurance and curiosity from banks.
“This course of is normally finalised by late July.
“Thanks to pre-fill, waiting a few extra weeks can make lodging your tax return online quicker and easier.”
The ATO mentioned final July, greater than 140,000 taxpayers had their 2020-21 tax returns amended earlier than the ATO issued tax assessments.
“The stakes are high for early July lodgers. People who lodge in July are twice as likely to have their returns adjusted by the ATO,” Mr Loh mentioned.
Each 12 months from late July onwards, most data from employers, banks, authorities businesses and well being funds can have been robotically loaded into tax returns.
To verify if pre-filled data was obtainable and make sure if revenue statements had been ‘tax ready’, go to the ATO app or log in to ATO on-line companies by means of myGov.
Meanwhile, the ATO additionally has some well timed assist for small enterprise house owners.
It has launched a tax time toolkit to assist small enterprise house owners and their tax professionals with revenue tax returns.
It has additionally flagged what it will be specializing in for small enterprise tax returns for 2021-22.
That contains deductions that had been personal and never associated to enterprise revenue; overclaiming of enterprise bills (particularly for taxpayers working a home-based enterprise); and omission of enterprise revenue, reminiscent of revenue from the sharing financial system or new enterprise ventures (together with inadequate or non-existent record-keeping).
The ATO’s small enterprise tax time toolkit included guides on home-based enterprise bills; motorized vehicle bills; journey bills; claiming deductions for the price of digital bills; utilizing enterprise cash and belongings for private use; and pausing or completely closing your small business.
ATO assistant commissioner Andrew Watson mentioned if tax obligations had been proving troublesome, a registered tax skilled may very well be an amazing assist.
“We know most small businesses do their best to meet their tax obligations and get it right,” he mentioned.
“We comprehend it’s been a troublesome couple of years for a lot of small enterprise house owners and we perceive your tax obligations will not be on the prime of your checklist, so for those who want a hand, I encourage you to contact your registered tax skilled or the ATO.
“If you’re feeling overwhelmed or getting behind together with your tax, tell us as early as doable so we will work with you to discover a answer.
“No matter what your scenario is, it’s by no means too late to ask for assist.
“Tax time is also a great time to discuss ATO debts with your registered tax professional or the ATO and set up a payment plan if you need one.”