Should I start my Tax return now or wait for May?
Some taxpayers have an extended deadline to prepare their 2017/18 tax return if a prior year return was lodged through a tax agent, or they were added as clients to a tax agent list prior to 31 October 2018.
For these taxpayers, the extended deadline to lodge their 2017/18 tax return is 15 May 2019.
If you’re looking to lodge on time, now is the time to engage with your tax agent to prepare your tax return.
Starting your return now has several benefits:
1.Getting in before the rush:
Many taxpayers put off doing their tax, especially if there will be an amount payable. However, most people want to be compliant and lodge by the due date – so they send documents at the start of May. Get ahead of the rush, and your return and relationship with your accountant will greatly benefit.
2.Time to handle complications:
Most tax returns are fairly straight forward to prepare. However, if you experienced a capital gains tax event or engage in crypto trading, your return becomes more complicated and as a result will take longer to prepare. There may be a lot of back-and-forth between your accountant and you to provide additional information, clarification, or to seek advice. Don’t let your tax return lodgement be late because there wasn’t enough time to handle a complication.
3.Easier to remember events and locate key documents:
Given 15 May is practically a year away from the end of the previous financial year, it can be easy to forget about possible deductions you can claim. Some businesses may have electronic invoices which have an access time associated with the purchase. It may take you much more time and hassle to obtain written evidence of deductible purchases because the email link expired 3 months ago.
Being prepared and organised can save on your tax return bill as well, as many tax agents charge on an hourly rate, rather than a set amount per return. Giving all documents quickly cuts the time it takes to finalise a return.
This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice