It is a suggestion that every registered company, organisation or any small business provided it is registered in the government to identify its tax liability and also it should tax return to the relevant authorities. The government as a body uses those tax that ae payed to deliver critical public goods and services such as electricity, security, roads and as well as law and order. There are some of the tax return mistakes that are very much costly to one’s self and costly to the growth and survival of some of the small business. The following is a list of some of the mistakes that one avoids in order to avoid such r
Mixing the business expenses with personal expenses.
Entrepreneurs should avoid this omen. This behaviour makes the funds of the business to get reorganised. You cannot be able to trace where the business has the problem. If your business is a corporation, it is considered as a very separate entity and therefore, its finances must be completely separate to maintain the corporate shield which protects your personal assets.
All the business expenses should be recorded down and the rest of the expenses should be avoided.
Failure to register as a taxpayer.
Some small business fail to register themselves in order to remain informal, they avoid formal registration. Therefore, these small business cannot get loans for growth and expansion. So they can remain down. Most of the informal business also to tap into the needed human skills that steer up their businesses. So it is very crucial that the entrepreneurs to register their small business so that they can get loans and successes and get maximum profits.Tax return cannot make their business to fail provided they have the business principles.
Underpaying the estimated taxes.
The self-employed persons are taxed through a self-assessment system. Therefore, their taxes are payed quarterly basis. If they underpay, penalties and interest can accrue. So, to avoid this some of the things that are self-employed persons can do is base tax which is paying the taxes of the previous year.
Relying on unqualified professionals.
Most of the small business rely on the unqualified professionals for the cheap services they do over. They are not able to afford the qualified professionals because they may be too expensive enough till they can still from the business. This kind of unqualified professional may not be able to compile all the bookkeeping laws and finally this can lead bad penalties.
Erroneous tax obligation.
Entrepreneurs should identify all the various types of tax returns and any of the changes of rates to ensure that they calculate the correct tax returns of their small business. Any erroneous tax obligation is always an expensive mistake for any small business because it leads to heavy penalties and losses as well.
In conclusion, when one starts a small business ensure you have done all that it pertains in order to avoid such big penalties. Although starting a business is very costly but make your business run efficiently without any other tax mistakes by proper book keeping.
Check out http://www.taxreturn247.com.au for more informations