How To Avoid Penalties On Late Tax Returns?
Understanding tax return deadlines and ensuring timely submissions is an important aspect of managing personal and business finances. Whether you’re an individual or a small business, navigating tax returns can be tricky and while it may be tempting to put off your tax return, don’t! It can result in costly penalties and a bad reputation. In this article, our Newcastle tax accountants will tell you how to get your tax return in on time to avoid unnecessary penalties.
The Importance of Timely Tax Returns
A timely tax return is not just a smart move financially —it’s also a legal requirement. If you don’t get your tax return in on time you may receive a Failure to lodge (FTL) on time penalty. An FTL penalty may also be issued if you fail to report PAYG instalments, GST or PAYG withholding on an activity statement by the due date.
The importance of a Tax Accountant
A tax accountant plays a crucial role in helping individuals and businesses understand their tax obligations, prepare accurate tax returns and ensure timely submissions. They can help you navigate the complex waters of tax returns, providing clarity on the nuances of tax laws, regulations and deductions that apply to your situation.
Your tax agents must be registered with the Tax Practitioners Board (TPB). You can find a registered tax agent or check whether a person is registered by visiting the Tax Practitioners Board (TPB) website.
Added Perks of Hiring a Tax Accountant
Most registered tax agents have a special lodgement program and can lodge returns for you after the usual 31 October deadline. This gives you more time to get your ducks in a row so you can get your tax return in on time. If despite your best efforts, you do miss your deadline, by hiring a registered tax accountant you may be eligible for ‘Safe harbour from FTL penalty’. This will occur if you can prove:
- You provided the agent with all relevant tax information to enable them to lodge the return or statement by the due date
- The agent’s failure to lodge the return or statement was not because they were reckless or intentionally disregarded the law.
With the help of a tax accountant, you can ensure you submit your tax returns on time and avoid unnecessary costs.
The importance of Small Business Tax Accountants
For small businesses, managing taxes can be even more complex. Business tax returns require greater accuracy and compliance with business-specific regulations. By hiring a small business tax accountant, you also have the added potential for significant business deductions and greater wealth generation. A small business tax accountant can provide tailored services that will help your business manage their taxes effectively and ensure timely returns.
The Solution to Late Tax Return Penalties?
Planning, professional knowledge and timely action. Remember, avoiding penalties on late tax returns is not just about saving money—it’s also about maintaining your financial reputation and staying compliant with the law. For these reasons, it’s essential to understand the tax laws and regulations that apply to you and stay on top of your tax obligations. The best way to do this is by engaging a registered tax accountant.
Dedicated Tax Accountants in Newcastle
Tax matters can be complicated, but you don’t have to face them alone. At The Garis Group, our team of Newcastle tax agents are ready to assist you. Whether you’re an individual or a small business, we can help you understand your tax obligations, prepare accurate tax returns and ensure timely submissions. Reach out to us today and say goodbye to the stress of late tax returns!
