Tax Return Time.. e-tax or accountant?

[beegreen]

Hi guys,

Only a newbie on the Sunshine Coast & need to know best plan of attack for my first business tax return. I organised an ATO officer come visit just prior to me starting out to run through a few things to ensure i was compliant with everything. He said since it's a small business, i can do my tax returns using their free e-tax service online but after playing around with it for a bit it seems a little too complicated for me especially when i want to make sure I claim as much as possible since the business ran at a loss after initial start up costs.

Does anyone use the ATO online tax service or is it easier to just find a good accountant & be done with it?

Cheers, Pete

[ian]

get a good accountant

[beegreen]

Cheers Ian... thought that might be the case.

[Stripes]

There are so many things the accountant will know to claim that you won't know about. Well worth paying someone and you should get much more than the outlay back in your tax return.

[AYM]

I've been wondering the same thing myself. I'm broke, but I suppose I could spend what's left on my bartercard on an accountant :p

[MikeS]

I do all my family and many friend's on Etax, some are quite complicated, I have completed courses in bookkeeping however it was many years ago and I would say I know what I am doing.

But for the business I still use an accountant it only costs me $165, but the fact is they do this for a living and keep up with all the law's and changes that are a fact in modern tax life, it's well worth the money.

[4 Gardens]

Accountant for the business - no question about it

I do my wifes on ETAX - she is a teacher

[Tender Lovin Lawn&Garden]

Hi guys,

Only a newbie on the Sunshine Coast & need to know best plan of attack for my first business tax return. I organised an ATO officer come visit just prior to me starting out to run through a few things to ensure i was compliant with everything. He said since it's a small business, i can do my tax returns using their free e-tax service online but after playing around with it for a bit it seems a little too complicated for me especially when i want to make sure I claim as much as possible since the business ran at a loss after initial start up costs.

Does anyone use the ATO online tax service or is it easier to just find a good accountant & be done with it?

Cheers, Pete

I would go the accountant as you have to depricate stuff and its a bit too complicated for person when its a buisness compared to personal

[geoff]

just thought you guys might like to read this..its from the ATO site ...very interesting
Lawn mowing and garden services

http://www.ato.gov.au/content.aspx?doc=/content/00293266.htm&pc=001/003/102/001/003&mnu=0&mfp=&st=&cy=

[geoff]

http://www.ato.gov.au/content.aspx?doc=/content/00293266.htm&pc=001/003/102/001/003&mnu=0&mfp=&st=&cy=

sorry doubled up here

[Tender Lovin Lawn&Garden]

I do etax for a lot of family and friends but buissness has to be done by accountant as you have to write stuff off and depreciate and thats all complicated

[geoff]

just thought you guys might like to read this..its from the ATO site ...very interesting
Lawn mowing and garden services

http://www.ato.gov.au/content.aspx?doc=/content/00293266.htm&pc=001/003/102/001/003&mnu=0&mfp=&st=&cy=

just finished my BAS for this quarter and dont know about you guys but the ATO guideline of around 50% expenses i find difficult to achieve..be lucky to have 30 % some times less

[Chris B]

thats what i was thinking. im guessing thats all the start up business buying cars / machines etc?? im guessing a lot of business' start up then close down within a couple years so high expenses??

[Chris B]

they updated that to 2012 http://www.ato.gov.au/content/00304785.htm
changed it to be more focused on expenses not labour

[geoff]

good one chris, seems a bit more realist..nice to be in the threshold range , people under it come under the ato radar they tell me...look out for those non registered gst people lol

[DavidS]

What are you people paying a Accountant to do your business tax. I got charged $806.00 for previous year which included two Financial statements for loans. I feel that this was over the top so I am going shopping for Accountants. I do have a book keeper.

[geoff]

ours is 440 for for a once annual visit includes both my wife and me and the business ( she doesn't work ) ...i do my bas each quarter ....been going to this guy for all the time in business ,normally email him a sheet of paper with the p and l and balance sheet...plus info on any capital purchases

[Lawn Mowing Professionals]

What are you people paying a Accountant to do your business tax. I got charged $806.00 for previous year which included two Financial statements for loans. I feel that this was over the top so I am going shopping for Accountants. I do have a book keeper.

It depends on your business set up - Are you a sole trader or company? Are you GST registered and require to do a BAS done every quarter? Do you have investment properties etc? I'm assuming it is for business and your personal tax.

The way i look at it is like this... If you find an Accountant that charges you less than $800 but doesn't maximise ALL your deductions or provides the best results then you will be out of pocket. I'm assuming your current accountant is charging based upon getting a maximum return for you and working in your best interest. Maybe you should be looking for another accountant if there is a lack of trust etc.

Most Accountants that I know charge minimum $200 per hour... so did they do approximately 4 hours of work for you (including the financial statements)?

Lucky i'm in and out usually within an hour and keep the small talk to a minimum :laughing: and i don't fall for the good old line of - this years fee's will be deducted on your next years return anyways... my reply is - It will only be a deduction if i make a profit :doh

Simmo.

[Scooby Steve]

What are you people paying a Accountant to do your business tax. I got charged $806.00 for previous year which included two Financial statements for loans. I feel that this was over the top so I am going shopping for Accountants. I do have a book keeper.

Depending on what he does it doesn't seem over the top to me have heard of the fees running into the thousands. Mines around the $600/$700 mark but i do my own Bas and i have Quickbooks which makes it easy for him i also keep the receipts in order. Haven't got this years bill yet :frightene

[administrator]

Will have some more info for members shortly on an accountant for the group .Might make things alot easier especially for the newbies .

[LLM]

Will have some more info for members shortly on an accountant for the group .Might make things alot easier especially for the newbies .

That would be awesome, thanks admin

Zac

[ian]

just remember the cost can all depend on how you prepare things before going the bill for my tax was around $350 another guy i know paid $1200 to the same person i think the difference was i didn't just hand her a shoe box of receipts and say do my tax :)

[happymowin]

yeah, but some accountants still think of what we given them as an "electronic shoebox" as my accountant calls it, lol

but, i do the same, i do all the adding and just hand him a list of the expenses for the categories i know he needs, fo my business and investments,

my business, my wifes personal tax, and my investments set me back about $450 to $550, i think.


my accountant is my best mates brother though and hes mostly retired, but still doing tax for a few clients, i fear the day when he gives it all up.

accountants imo are an expense not to scrimp on.

[DavidS]

SUGAR it's that time again Bugger me it comes around quick

[PaulG]

Copied from the Courier Mail as not all may be able to see the link due to News Limited's paywall.

http://www.couriermail.com.au/money/cost-of-living/how-to-beat-the-taxman-8212-the-legit-way/story-fnihpilr-1226682802008


How to beat the taxman - the legit way

TAXPAYERS are gifting the Government billions of dollars a year by failing to claim legitimate deductions - it's enough to make Kerry Packer turn in his grave.

The billionaire once told a parliamentary committee that "if anybody in this country doesn't minimise their tax, they want their heads read, because as a government, I can tell you you're not spending it that well that we should be donating extra".

But donating extra we are.

News Limited analysis reveals workers offset 5.59 per cent of their income in 2005-06 but only 4.76 per cent in 2010-11, the most recent financial year for which ATO data is available.

Had we kept up that 2005-06 level we would have claimed $37 billion of deductions in 2010-11 instead of just $31.5 billion.

On this basis the average taxpayer dudded themselves of $436 in deductions and a potential refund of $131 for those on a 30 per cent marginal tax rate.

Start of sidebar. Skip to end of sidebar.

End of sidebar. Return to start of sidebar.

Reasons for the decline include the increasing complexity of the system, poorer record keeping by taxpayers - and more DIY returns.

ITP regional director Scott Bailey said people were getting worse at claiming deductions.

"I think they miss out on a lot,'' Mr Bailey said.

H&R Block regional director Frank Brass said: "It comes down to a lack of knowledge. People don't really know what they can claim. But they think they do."

The Federal Government is banking on us doing an even poorer job into the future.

The 2013-14 Budget papers reveal that Treasury expects a $12.9 billion increase in gross income tax this year - a rise of 8.6 per cent. In stark contrast, it estimates refunds will increase by less than 0.2 per cent, or just $50 million.

Yet more people are choosing to their return themselves. ATO data shows the proportion submitted by tax agents fell from 77 per cent in 1999-2000 to 72 per cent in 2010-11.

Ban Tacs consulting accountant Julia Hartman said some new clients get annoyed with all her questions. But they are always pleased when they see the size of their refund.

"You have to ask all those questions," Ms Hartman said. "People are not good at asking those questions of themselves."

To help readers get their fair share when filing their 2012-13 return, today we reveal the most under-claimed deductions.

Atop the list is car expenses.

"People don't claim their motor vehicle enough," Ms Hartman said.

ITP's Mr Bailey said: "It doesn't take long to get a decent claim out of that but it is something that people often overlook."

Next is time spent in the home office. Every hour earns a 34c deduction - if a diary is kept for a month.

"It doesn't sound like a lot but it's usually a couple of hundred dollars for a schoolteacher," Mr Bailey said.

HLB Mann Judd tax consulting partner Peter Bembrick said that record-keeping was becoming more difficult because people were increasingly time-poor: "Substantiation - that's the thing people really struggle with."

H&R Block's Mr Brass said: "Because they don't keep the records they limit the claim."

Mr Bembrick has a solution: "Use technology to help you."

Log books and diaries can be sourced from websites such as etax.com.au, while smartphone apps such as Shoeboxed make it easier to keep records of receipts.

The most under-claimed - but legit - deductions

1. Keep a diary. You can't claim the commute between home and work but if you go to other sites or functions outside work you can claim a minimum 63c/km for up to 5000km. "It's not unusual to be able to get that 5000km," Ban Tacs' Julia Hartman says. Requires diary records

2. Log it. If you're serious about getting the maximum deduction for work-related car use it's possible to get more than twice as much back from the tax man by using the "logbook method" instead, H&R Block's Frank Brass says. It allows you to claim some of the decline in value of the vehicle. You'll need to keep detailed logbook entries for 90 days minimum

3. Lug it. Tradies who can't safely keep their tools on site can claim their commute. "They need to be carrying equipment weighing more than 20kg," Ms Hartman says

4. Home office. You can deduct 34c for every hour spent working in a home office. It has to be a dedicated room. "And you need to keep a diary for a month," ITP's Scott Bailey says

5. Travelling to an investment property. More than 1.8m taxpayers have an interest in an investment property earning rental income. You can claim meals and accommodation related to visiting it to do repairs or an inspection. "The only thing they've got to watch is where they try to tee it on to a holiday," Mr Bailey says

6. Technology. Work calls from your home phone and mobile. Depreciation relating to your computer and tablet. Home internet usage. "About 10 per cent internet usage would be reasonable, given all the gaming kids do these days," Mr Bailey says,

7. Cleaning of uniforms. Receipts are not required for laundry costs up to $150. But it's got to be a proper uniform. Goggles, helmets and sun protection can also be claimed for some professions and trades

8. Accountant's fee. In 2005-06 accountants forgot to claim on 3m returns the fees they'd charged the year before. Don't let yours forget how much you're paying them

9. Union fees. Membership is a deduction, as is the cost of being part of a professional association

10. Income protection insurance. "It's almost a bit of a no-brainer," HLB Mann Judd's Peter Bembrick says, especially for those earning more than $80,000

Follow John Rolfe on Twitter: @costofliving

[imoww]

Im registered but The ATO Took the GST off me because i was earning less than 75k.


good one chris, seems a bit more realist..nice to be in the threshold range , people under it come under the ato radar they tell me...look out for those non registered gst people lol

[Chris B]

https://www.ato.gov.au/business/small-business-benchmarks/in-detail/benchmarks-a-z/l-q/lawn-mowing-and-garden-services/

Another update:

2015–16 financial year
Tax return – key benchmarks