Tax season can be overwhelming for many people. If you are looking for different ways to reduce tax, you must read this blog. You can reach out to a tax agent in Melbourne to save more money on taxes. Tax accountants are well aware of possible tax deductions and different ways to help you get more out of tax returns.
Is it worth using a tax agent in Melbourne for taxes?
Tax agents and accountants are trained to identify opportunities to get the most out of your tax return. Therefore, it would be worth seeking help from a tax agent when it comes to tax affairs. The following are a few ways used by tax accountants to help you save more during a tax season.
Claim potential tax deductions
If you spend any money on things that relate to your earning income, you can claim them as a deduction. Even if you purchase something that is not used for your work, you can still claim a percentage of it as a deduction. However, tax agents better know how to claim these types of deductions. If you are unaware of any type of tax deductions, you can ask small business tax accountants.
Minimise your taxable income with a donation
Fortunately, when you donate to a good cause, it not only benefits the recipients and gives you a sense of contributing to society, but it can also have a positive impact on your taxes. If you make a donation to a recognised charity and obtain proof of your donation, you can reduce your taxable income and lower the amount of tax you owe in Australia. For more detailed information regarding deductions of gifts or donations, you can ask tax agents.
Salary sacrificing
Salary sacrificing makes you able to put a portion of your pre-taxed income toward a benefit before getting taxed. The sort of advantages include a car, or contributing to your super. Some of these benefits are known as fringe benefits and can save you a lot of money in taxes every year with a few limits. Salary sacrifice might be confusing for you, so it’s advisable to get help from a professional.
Meet ATO tax deadlines
If you don’t have any issues with the ATO and you’ve submitted your tax return through a tax agent, you can file it as late as May in the next financial year. If you’re not using a tax agent, you need to lodge your tax return by October 31st. Not meeting the ATO tax deadlines may result in various fines and penalties, so it’s important to submit your return on time. Before you file taxes, you must have accurate records that can be arranged by a bookkeeper. They will also produce a bank reconciliation statement to help you know the financial status of your company.
Monitor all financial records
When you claim a deduction, ensure you have a record of the deduction, and you should keep that record for a long period of time in case the ATO asks about the expenses. Many people pay more taxes than required because they throw away an old receipt. Your accountant can track all of your deductions in one place.
Seek help from a tax agent
If you want to save more on taxes, then it would be worth it to seek help from a tax agent. An experienced tax agent knows all the tips and tricks to help you save more on taxes. In addition to this, tax agent fees are tax deductible.
The more you claim tax deductions, the less tax you pay and the more money you can save. You can ask tax accountants for possible tax deductions or other ways to save more on taxes.
Conclusion
The blog shares information on different ways used by experienced tax agents to help you save more on taxes. For more information on increasing tax savings, you can contact Reliable Melbourne Accountants.