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 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!
How does using a Tax Agent pay for their services?
The benefit of using a tax agent works in three ways:
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.
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!