Avoid these common mistakes and get it right this tax time
We know small businesses work hard to get their tax and super right, however we understand mistakes can still happen. If you’re a sole trader, you can get ahead this tax time by avoiding these common errors:
- Not reporting all income – this includes income earned outside your business (like a side hustle), cash jobs or payments in-kind /barter deals (like the value of goods or services received in exchange for your work).
- Over claiming expenses – this includes claiming the portion of an expense related to personal use or overstating the cost of goods sold and other business expenses.
- Calculating business losses.
- Incorrectly claiming and offsetting losses from non-commercial business activities against other income sources.
- Claiming PAYG withholding refunds.
- Misreporting personal services income (PSI) to gain tax benefits.
- Not registering for GST if you are in the taxi or ride-sourcing industry or when you reach or expect to reach the GST threshold.
- Not keeping accurate and complete records.
Courtesy: ATO Website
