Do your tax return yourself - its easy!

For a number of years we have been hearing the familiar and increasing cry of "Doing your tax return is easy - you don't need an accountant".

Last week, the ATO commissioner Chris Jordan stated his intention to target 'work related expense clains' - stating:

In 2014–15, around 6.3 million people made claims against clothing expenses totalling almost $1.8 billion. That would mean that almost half of the individual taxpayer population was required to wear a uniform or protective clothing or had some special requirements for things like sunglasses and hats.

While many of these claims would be legitimate, I wonder how many people have assumed that they can just claim $150 regardless of whether or not they have spent that amount on the required items?

Similarly, we are seeing claims being made by individuals for car expenses where their employer informs us there is no requirement to use their car for work; or where their claims are excessive and made with the assumption that ‘no explanation’ is required.

I can assure you that this means that millions of Australians are going to be audited, and denied claims for things they might have claimed as a deduction in the past.

Its important to get your tax right, which also means claiming as much as you are legitimately allowed to claim.

My belief is that most people don't claim what they are legally entitled to claim, out of fear of an ATO audit.

Don't believe what you read in the papers. Your tax return is private and unique to you - its nobody's business but yours - don't compare your claims to what other people say or might do.

Get the right advice from an accountant - good advice always pays for itself.