A very fine line lies between filing your taxes and seeking the guidance of a professional. More often than not, a slight mistake could lead to inaccuracy in the return, resulting in the possibility of penalties and interests being charged. Trying to correct the situation then often costs a high price which can easily be avoided via seeking guidance from a qualified and registered tax practitioner from the very start. Simply defined, a registered tax practitioner, also known as a tax agent, is an individual under contract and employed to communicate directly with the “taxman. In the UK, this is an expert in Her Majesty’s Revenue and Customs (HMRC), the tax authority of the UK government. Whether you are filing tax returns in the category of individual tax returns, company or sole trader returns, reaching out for assistance is always a good idea. This is because a tax practitioner has been trained in accounting and has additional special training in tax and law.
To Avoid Fines and Penalties
Filing returns by yourself automatically indicates that the full responsibility of filling the tax returns falls directly on your shoulders. In the case of an error, no matter how innocent a mistake it was, you may be subject to a tax audit. A tax audit is defined as a full 360° review of your tax returns. The UK and Australia ensure that the correct amount of tax is being paid by taxpayers. It is therefore important to seek guidance when it comes to your UK/AUS tax returns. Doing so will help you avoid hefty fines and penalties and ensure that you are compliant with tax laws. It is, therefore, a better option to have your returns diligently prepared and accurately filed by an expert.
Filing tax returns is no child’s play, especially when it comes to your UK/AUS tax returns. If you have not been professionally trained in accounting and tax laws, the chances of you making an error are very high. It is essential to consider the fact that filing any form of tax return requires one to be fluent in the language of the (tax) law. Thus, seeking a consultant and help from a registered tax agent may not be such a bad idea. If a tax authority such as the Australian Tax Office raises a query with you, and reference a tax law, you would be able to comprehend the message and respond accordingly.
When seeking consulting and professional help, you get the chance of being advised of necessary deadlines, which would help you avoid unnecessary fines. Let’s see what kind of fines exist.
In the UK, penalties for late filing as highlighted on GOV.UK is as follows:
- 1 day – £100
- 3 months – An additional £100
- 6 months – The HMRC will calculate an estimate of your Corporation Tax bill and include a penalty of 10% of the unpaid tax.
- 12 months – Another 10% of the unpaid tax.
- Late 3 times in a row- the £100 are increased to £500 each.
If the above penalties do not seem intimidating enough, wait until you hear about Australia’s very own late lodgment penalty. For the first 28 days after the due date, the penalty is $222. This would then continue to increase by an additional $222 after each following 28-day period. It is, therefore, a good idea to get help with your tax returns before the deadline.
Less Complex Process
At first glance, the filing of taxes always seems like a complicated procedure. It can be in some form, especially if you are not experienced or aware of updated, relevant tax laws. It is important to remember that all tax returns are unique, so copying your neighbour’s tax return format may not fully apply to you and vice-versa. You will likely experience a challenge when filling out the forms and need professional guidance. Save yourself the challenge and the stress to have your taxes prepared by a professional.
Choose the Correct Tax Code
Your tax code basically communicates to your employer and pension company how much of the overall pay can be paid free of tax while tax is taken from the rest. Possessing full-on comprehension of your tax code is vital. This is because the tax office places responsibility on your shoulders to ensure that your tax code is correct. In the case that your tax code is wrong, two things could happen. The first is that you could miss out on a tax rebate. The second is that you can be awarded an unforeseen and unexpected large tax bill.
Therefore, if you work in the UK/AUS, you need to know your correct tax code because it influences how much you are taxed. Often income tax codes can be wrong for a couple of these reasons:
- There are work expenses that you are not claiming tax relief for. It is possible to have income tax allowances as a part of your tax code because then you end up paying less tax due to work-related expenditure(s).
- You do not have a company benefit anymore, for example, a company phone.
- You got a new job and/or you changed jobs, and you were given an emergency tax code, which is basically what your employers will use because your correct tax code is not (yet) available.
With the various procedures and intricate details of the tax return laws, seeking consultation will help you save time. This is because you will have a professional perspective helping and guiding through filing your UK tax returns in Australia instead of trying to figure it all out on your own.
In conclusion, as the wise saying goes, no man is an island. This is especially true when it comes to filing tax returns. We have summarized six strong reasons why you need assistance with your UK and Australian Tax Return. They will not only help you avoid penalties and fines but get you into the correct tax code and help you meet deadlines. These 6 points should provide enough information for you to decide if it would be worthwhile or not. We hope this has been helpful, and thank you for reading!