Tax time isn’t everyone’s favourite season. For many in Liverpool, it’s a source of stress, confusion, and—unfortunately—costly mistakes.
Whether you’re a small business owner, sole trader, or full-time employee, avoiding common tax errors can save you money, time, and potential trouble with the ATO.
Let’s walk through the most frequent mistakes people make—and how you can steer clear of them.
1. Not Keeping Proper Records
This is by far one of the biggest issues we see.
People wait until the end of the financial year to dig up receipts, invoices, and bank statements. By then, many items are missing or unclear.
Good record-keeping isn’t just about avoiding errors—it can also help you claim what you’re entitled to.
Use digital tools or apps to store receipts and log expenses throughout the year. It’ll save you a headache later.
2. Missing Deductions You’re Eligible For
Many taxpayers leave money on the table by not claiming valid deductions.
If you work from home, travel for work, or even have a side hustle, there may be deductions you’re unaware of.
You don’t want to overclaim, but you also don’t want to miss what’s fair.
A tax accountant in Liverpool can help you find the right balance. They know the local tax rules and can spot deductions you might never think of.
3. Lodging Late (or Not at All)
It’s easy to let deadlines slip—especially when life gets busy.
But lodging your tax return late can lead to penalties and interest charges from the ATO.
If you’re behind, don’t ignore it. The sooner you act, the better. The ATO is usually more understanding if you show you’re making an effort to fix things.
Set calendar reminders. Better yet, get professional help to stay on track.
4. Guessing Instead of Checking
Too often, people guess their income or expenses when filling out their return. That’s risky.
Even small errors can trigger an audit or delay your refund.
Always double-check your numbers. Use actual records, not estimates.
If something doesn’t look right—ask. It’s better to take five minutes now than face a fine later.
5. Not Understanding Business and Personal Expenses
This one trips up small business owners and freelancers often.
You can’t claim personal expenses as business costs—even if they seem loosely related.
Make sure you understand the difference between the two. If in doubt, separate your personal and business transactions completely.
A professional accountant can help set this up properly from the start.
Final Thoughts
Tax doesn’t have to be a nightmare. With a bit of planning and the right help, you can avoid common mistakes and maybe even get a better return than expected.
If you’re unsure where to begin, reach out to a qualified tax accountant who understands the Liverpool area and its local tax challenges.
After all, getting your tax right is more than just ticking a box—it’s about keeping your finances healthy and your future secure.
