Are you a sole trader or do you run a small business? It’s essential to get your taxes right to avoid potential issues down the road. At Finacc Future, we understand the importance of accurate tax reporting. We’re here to help you navigate the complexities of tax season and ensure that you don’t make common mistakes that can lead to trouble with the Australian Taxation Office (ATO).
1. Report All Income Accurately
One of the most common mistakes sole traders make is omitting income earned outside of their business. Whether it’s salary, wages, or non-monetary payments, all income should be reported. The ATO has sophisticated ways of cross-checking data, so it’s essential to be honest about your earnings.
2. Expense Claims: Be Precise
Claiming expenses is a legitimate way to reduce your taxable income, but it’s crucial to be accurate. Avoid claiming expenses related to personal use or overstating the cost of goods sold. Maintaining proper records and receipts is essential to support your claims.
3. Calculate Business Losses Correctly
If your business experiences a loss, it’s essential to calculate it accurately. Incorrectly calculating business losses can lead to issues with your tax return. Seek professional advice if you’re unsure about how to handle business losses.
4. Understand Non-Commercial Loss Rules
The non-commercial loss rules can be complex, but it’s crucial to apply them correctly to offset losses against other income. Failing to do so can result in financial setbacks. Our experts at Finacc Future can provide guidance on navigating these rules.
5. PAYG Withholding Refunds
Claiming PAYG (Pay As You Go) withholding refunds is a legitimate way to reduce your tax liability. However, it’s essential to make sure you’re eligible for these refunds and that your claims are accurate.
6. Reporting Personal Services Income (PSI)
If your business involves providing personal services, it’s essential to correctly report PSI. Failing to do so can result in penalties. Our team can help you understand the rules surrounding PSI reporting.
Conclusion
Finacc Future committed to helping sole traders in Brisbane and beyond navigate the complexities of tax season. We can provide personalised guidance, ensuring that you meet your tax obligations accurately and efficiently.
As a sole trader or small business owner, you know that navigating the complexities of tax obligations can be a challenge. That’s why we have attached a pdf of Small Business Tax Time Toolkit – your key to getting things right this tax season.
Ready to ensure your tax season goes smoothly? Schedule a tax assessment with our experts at Finacc Future now. We’ll help you avoid common pitfalls and maximise your returns.