When it comes to tax time, many people feel like they are at a loss. They don’t understand the tax system and feel like they’re not in control with little power to do anything to actually control how much tax they pay.
A recent survey conducted by TaxTank revealed that 1 in 10 Australians admit that their approach to tax time borders on the chaotic, with receipts and invoices and emails left unorganised, and tax returns prepared or filed at the last minute.
But this last minute once a year approach can be costly, especially with the ATO promoting the number one cause for audit adjustment is lack of substation and happily issuing penalties for mistakes with backdated interest charges.
Doing your tax return yourself remains a key to your own financial health
Why? Because it allows you to take back the power and control over your own tax affairs. It gives you certainty about your tax position and can help you unlock serious savings and investment opportunities.
Let’s break these factors down a bit further.
When you do your tax return yourself all year round, you are in control of the process in real time. This means that you can ensure that everything is substantiated, done correctly and always on time. You won’t have to rely on someone else to get things right, and you won’t have to worry about being penalised for mistakes or finding documents for things you know you paid for.
Managing tax all year round also gives you a better understanding of your tax position. This knowledge can be used to save money in the future, by not only making sure that you are claiming all the deductions that you are entitled to, but proactively making decision to reduce how much tax you pay.
It can also help you make informed decisions about investments and other financial opportunities. For instance, if you know how much tax you will be paying on a potential investment or sale, you can decide about whether or not it is worth pursuing now or holding off for a better time.
So, if you’re looking to take control of your finances and save money, doing your own tax return is a good place to start.
Tax time and stress levels
To some people, doing their own tax returns seems daunting. To others, there is the worry that they will make a mistake and be penalised by the ATO. And to others again, they believe they don’t have enough knowledge and experience with tax laws to achieve the best tax return possible for themselves.
But, with a bit of organisation and planning, doing your tax return yourself is not as difficult as it seems. And the benefits are well worth the effort.
There are a few resources available to help you get better at doing your own taxes.
The Australian Taxation Office (ATO) website is a great place to start, as it provides a range of tips and tools to help you understand the tax system and your obligations.
Beyond that, there is TaxTank.
TaxTank is the first software built specifically for individual taxpayers to level the playing field against the increasing ATO scrutiny and compliance obligations.
TaxTank not only ensures you are claiming the maximum allowable deductions for your unique circumstances, but with its cloud-based software, it makes tax time a breeze by automating tax return processes and storing all your important tax receipts and documents in one place.
Plus, TaxTank is the only tax-help platform that allows you to see your tax position year round. This is a great innovation as it means you can start to plan and take advantage of tax opportunities as they arise, rather than waiting until tax time to find out what you could have done.
Better still, TaxTank has a huge range of interactive reports, including a MyTax report for painless self-lodging. Or for those who prefer to use a tax agent, simply invite your accountant to your TaxTank for a hassle free tax time.
So, if you’re looking for a way to take control of your tax affairs and save money, TaxTank is the answer.
Why not try it for yourself today? It’s free to get started with our 14-day trial.
So what are you waiting for? Get started on maximising your tax return today!
