When you try to do your own tax return it is complex, yes – and it is understandable if you have a head for mathematics. If you don’t, however, then you could find yourself lost down the proverbial rabbit hole.
Even those that do know their way around the times tables can find themselves paying too much tax of a year. Why? It is because they do not know about tax law. They have not studied the legislation. They do not know what is claimable, and what is not.
When you DIY your tax return, you’re not just ‘saving yourself money’… In fact, you might even be costing yourself funds. Some mistakes can cost you more than you ever thought possible. Let’s look at some of the risks of doing your tax return yourself and find out exactly what those costs might be.
What are the Risks of Doing Tax Returns Yourself?
There are lots of risks involved, in spite of what you may have been previously told.
Risk 1: Human Error
When you hire a firm to do your taxes on your behalf, they will pass between more than one set of hands. Any editor will tell you that this minimizes the risk of error. As well as being double-checked, the firm you choose will have a dedicated software system designed to point out mistakes. Unless you have this software too, don’t DIY your tax return.
Risk 2: Timing
A qualified, time-served accountant knows when and where everything needs to be sent. They also know the why, the how, and exactly what to send. Again, this is something you can only learn through years of study and experience. Do you want to take that chance when it could cost your thousands of dollars?
Risk 3: Penalties
If you make mistakes with the aforementioned filings, don’t lodge things at the right time, or falsely record something because you don’t really know what you are doing, then you are costing yourself money. You may even be subjecting yourself to future penalties when the government clock-on to what you are doing. Penalties as outlined by the Australian Tax Department are huge. They go up as time goes on. You could end up paying double or even triple what you owe simply for not filing on time.
Risk 4: Ignorance
It might be that you are paying far too much tax because you don’t realise your entitlements. This happens more often than you might think. Many people overpay tax because they aren’t accountants and they don’t know the system.
If just might be that the cost of hiring a professional to do your tax return for you, is less than what you are overpaying the tax office every year. Imagine the savings you could make if this turned out to be the case.
Have Tax Return Questions?
If you are living in Australia and need help completing your tax return, you need https://www.taxreturn.com.au/. You could have your tax return done for you from prices as low as $99. Contact them now for further details and to make your tax life, simpler.