Why You Shouldn’t DIY Your Tax Return
Does anyone really love doing their tax returns? If you are self-employed or running a small business (or planning to in the future), you have no doubt considered whether you should outsource your tax returns.
Surely it can’t be too hard right? It’s just one little form…
A quick online search or a chat to Inland Revenue will confirm that taxes are a lot more than simply filing a form once a year. It is actually about keeping an accurate set of financial records that spell out how your business is performing.
Here are the main reasons why you should leave your tax return to the professionals:
Submitting A Tax Return Is A Complex Process
The Inland Revenue is currently undergoing huge changes to become a more customer centred business. This will make interacting with the agency more efficient and pleasant. But, it doesn’t change the inherently complicated regulations involved in income and business tax.
You can certainly find a lot of information about how to handle your finances online. But, the internet is not a complete resource. It often contains inaccurate or out-of-date information. And it is certainly no replacement for the years of practical experience an accountant has.
Engaging a professional to deal with your taxes will ensure that the correct processes are followed and that you will receive accurate, appropriate advice. This is especially helpful for staying up to date on any changes to tax laws, or simply being reminded when certain things are due.
There can be some pretty hefty penalties for underpaying taxes or failing to keep your records as required. So, it’s not something you want to take a chance on!
You Might Save More Money
A tax accountant is going to know all of the exceptions as well as the rules! That means they may be able to save you money on your tax return bills by making sure you are getting all of your entitlements, like tax credits and deductions.
If you work for yourself or from home, a lot of your expenses can be either fully or partially deductible. Your tax professional can ensure you don’t miss out on anything you might be owed.
Any Income Related Lifestyle Changes
If you have recently experienced a significant increase or decrease in income, had a baby, or started a hobby business – your tax obligations might have changed, too.
If you have an accountant taking care of your taxes, you just have to inform them and they can take care of the rest! Otherwise you would have to wade through the complicated (and sometimes confusing) mass of information out there. After hours of reading, you still might not have the answer!
Peace Of Mind
This reason might appeal to you the most – you simply don’t have to worry about it anymore! Dealing with taxes can be frustrating and stressful. Most of us understand the dangers of messing up your tax return. We just aren’t completely sure how to avoid it. It also means that you won’t miss any, all important deadlines and receive penalty fees.
Outsourcing your tax related tasks frees up time and helps you rest easier, knowing that your obligations are properly taken care of. This is not only beneficial for the short term. In the event that you are the subject of an audit further down the line, all of your tax ducks will be neatly in a row – prepared and assured by the experts.
Here at Accountants Plus we have a full range of accounting, taxation, and business advisory services.
Contact us today to find out how we can help you with your tax obligations.