The lead-up to the end of the financial year can feel like a whirlwind, but by avoiding these common hurdles, you can keep your tax season on track and make it your smoothest yet.
Mistake #1 – Neglecting your home office details
If you’re claiming home office expenses, accuracy is key. You might have started the year tracking everything diligently, but it’s easy to let those habits slide. Now’s the time to catch up — don’t leave it until the last minute. Gather your utility bills, rates, phone plans, and other relevant expenses, and plug them into your home office expense chart.
Mistake #2 – Forgetting asset invoices
Have you bought a new vehicle, tractor, or other equipment this year? Save those invoices! We need them to update your asset register and calculate accurate depreciation claims.
Mistake #3 – Skipping your odometer reading
Do you use a vehicle for work? Record your odometer reading on 31 March to track your total business and personal kilometres for the year. This is especially crucial if you’ve driven more than 14,000km, where Inland Revenue’s Tier 2 rates apply.
Mistake #4 – Not flagging Xero/MYOB uploads with your accountant
If you upload invoices into Xero or MYOB, let us know. This simple step can streamline the process and potentially reduce your accounting fees.
Mistake #5 – Confusing deductible expenses
Food, drinks, travel — what’s deductible and what’s not? The rules vary depending on whether you’re self-employed, a shareholder, or trading as a company. Check Inland Revenue’s guide on entertainment expenses to avoid surprises.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
