With tax time creeping up preparation is essential, particularly if you want to minimise your tax bill. Having everything in order this tax time will help prevent falling into common tax traps that could see you or your business losing money. Avoid these mistakes to prevent any nasty surprises:

Incorrect paperwork

One of the most common mistakes when it comes to doing taxes is mistakes on the paperwork. Errors such as recording your name, bank details, date of birth and tax file number incorrectly can deem your paperwork false and could hinder your tax return process. These mistakes are easily avoided but commonly made. Double check everything.

Guesswork

Guessing your tax deductions can be dangerous. It is in your best interest to take the time to accurately calculate tax
deductions. The best way to take the guesswork out is to file all paperwork relating to tax, such as buy and sell contracts and proof of purchase receipts. Develop a filing system that works for you and keep a record of all income expenses as they occur.

Failure to declare

Failing to declare can be extremely detrimental to your business and can lead to auditing. Ensure you are accurately declaring all business activity and disclose any capital gains to avoid being hit with unwanted penalties. If you feel you have declared incorrectly, you may submit a voluntary disclosure to reduce these penalties.