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06 January
2017
BUSINESS TIPS
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Registered Tax Agents save you Money and Time

Use a Tax Agent

You might think that this is what everyone does.

To my absolute surprise I discovered that about one in three individuals and about 10% of small business owners do not use, nor have a qualified tax agent complete their company returns. I have been in business in one way or another “before” becoming a BAS Agent and using a qualified tax agent was something that I thought everyone did.

 

 

Well I stand corrected, there are a number of people that do not use a tax agent.

What does a Tax Agent do anyway?

A tax agent is a qualified accountant that has focus their practice on understanding how the Australian Tax system operates. They are keep up to date to ensure that they are your expert on everything to do with tax. They know what you can and cannot claim as a deduction. They also know what you need to declare in order to remain legal and compliant with the Australian Taxation Office.

 

Why business owners do their own tax

 

Why some  people choose not to use a tax agent?

1. They might already employ a in house accountant

2. Tax Agents charge to much

3. They prefer to just lodge it over the MyTax portal themselves as their sole trading business is pretty simple.

4. They have a cash based business and do not declare their income

5. Their business earns under the $18,000 threshold a year

6. Don’t know

What are your thoughts on the subject?

 

Tax Agent vs BAS Agent

Let me specify that I am referring to a TAX Agent, and not a BAS Agent.

To check that your Accountant is registered and licensed to complete your annual tax is as easy as looking up their name on the Tax Practioner’s Board site.

You can do so by clicking on the TPB REGISTER HERE.

The rules are clear as to what a BAS Agent can do, lodging your quarterly BAS is a yes, but your annual TAX is a NO!

See Smart Company’s article dated 14th December 2012 while another BAS Agent was fined $43,000 dated 27th May 2014 

 

Its smart to use a tax accountant

 

How does using a Tax Agent pay for their services?

The benefit of using a tax agent works in three ways:

  • Their service helps you receive your full refund entitlement.
  • Frees up valuable time attempting to do it yourself.
  • Lastly, the cost of using a tax agent is claimable on your taxable income.

 

Why is it so important to use a registered Tax Agent for your annual tax return?

Using a registered tax agent or a BAS Agent for your bookkeeping / BAS lodgements gives you peace of mind and a level of protection.

Here are some case studies from the Tax Practioner Board for you to read. CLICK HERE

My personal opinion is that if you are a PAYG employee, using the ATO portal would be adequate, as long as you have all the receipts to substantiate any deductions. However, once you are turning over an income as a self-employed sole trader, trust or a company, it is wise to pay for a qualified tax agent to complete and lodge it.

 

use a registered tax agent for tax returns

 

Peace of mind when the ATO knocks on your door

When the Australian Taxation Office comes knocking on your door, and they will come knocking……

Paying for Audit Insurance and having a Tax Agency at your side will be worth any amount of money you pay them, and the peace of mind that goes along with it!

 

CALL us to find out how we can help you on 0423463721 or fill out our contact form and we will contact you! 

Amanda Hoffmann is a registered BAS Agent No.18613005, Associate of Finance, Xero Certified, Myob Essentials and Quickbooks partner.

She says she is more than just a bookkeeper with experience in real estate investing, social media, podcasting and blogging.

Amanda loves to teach smart, easy online cloud solutions and can show you how much fun bookkeeping can be. Follow her on social media and say “Hi”




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