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Small Business Tax Time Errors It is almost the end of the current tax year (2020–21) and the start of a new one (2021–22). It may not be long before you start thinking about lodging your 2020–21 tax return. If you anticipate a tax refund, the quicker you lodge the return the quicker you will get that refund. But if you believe you will have to pay more tax (i.e. in addition to the PAYG instalments you have paid), then it might be worth delaying the return as long as possible. If you don’t use a tax adviser to lodge your return, you will have to do it by 1 November 2021 (you get an extra day this year because 31 October is a Sunday). Of course, if you use your tax adviser to lodge your return, you may have until May 2022 to complete it. The ATO has identified the most common errors small businesses make when completing their tax returns. They are failing to: • declare all income – this includes cash and online sales, dividends, interest, capital gains and one-off transactions such as selling equipment or other capital items; • account for private use of business funds or assets, such as trading stock taken for private use and shareholder loans; and • keep all required records or have adequate record keeping systems. Tip! If your tax adviser prepares and lodges your return on your behalf, find out when it is due under their lodgement program; and make sure they have all relevant information.

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