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  • #973768
    Ms_X
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    Hi,

    I just have a quick question. For the company income tax return, can I lodge it myself or it must be lodged via an agent? Because I can see at the end of the company tax return form that there is a section for the agent to sign. I always thought I can lodge it by myself. And another thing is how can I lodge it: filling paper form only?

    PS:there is almost nothing to declare as company was registered in February this year and did not trade much.

    Thanks for your help.

    #1063969
    MA Accounting
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    Hi MS_X

    Yes you are correct, you can lodge a company tax return yourself. You can do so by downloading the form from the ATO website, completing and mailing to the ATO.

    It is not completely straight forward to complete the form but if you have an understanding of your company and its accounts you will hopefully find it not too difficult.

    Good luck

    Mena

    #1063970
    TEN (AUST)
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    Ms_X, post: 79220 wrote:
    Hi,

    I just have a quick question. For the company income tax return, can I lodge it myself or it must be lodged via an agent? Because I can see at the end of the company tax return form that there is a section for the agent to sign. I always thought I can lodge it by myself. And another thing is how can I lodge it: filling paper form only?

    PS:there is almost nothing to declare as company was registered in February this year and did not trade much.

    Thanks for your help.

    Ms_X, you can download a pdf guide ‘Company tax return instructions 2011’ from here >>

    #1063971
    Trevor Monaghan
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    In my humble opinion it will take you all day to read the instructions and complete the forms and it will still be incorrect. I have worked in accounting firms for over 10 years (and now run my own) and I can tell you that most degree qualified accountants with 1 whole year’s experience make significant mistakes on 90% of the company tax returns they prepare. Luckily there is a review process in place and they get fixed before they get lodged!

    The real question is what else you could do with your time. How many prospects could you call in one day if you blocked your time out? Let’s say you could make 1 call every 5 minutes fr 8 hours. That’s 96 phone calls. Say your conversion rate was 5%, making 5 new customers. If the lifetime value for each customer was say $1,000 then you have just made $5,000, not to mention the referrals you would get from those customers.

    Stick to what you do well and play to your strengths. A good accountant will also have a conversation with you about making more profits too so it’s a dual purpose, but make sure they give you a fixed price before you start so there’s no surprises.

    In my humble opinion every business needs a business plan, a marketing plan and a cashflow budget, even if they are all only one-page documents. You then also need to see your accountant either monthly or quarterly (could even be over the phone) to discuss how the business is tracking against your plans and targets.

    Using a good accountant will MAKE YOU MONEY. My experience is that you cannot cut your way to growth and having that mindset will forever put your business behind your competitors. Most small businesses have a J.O.B. (Just Off Broke) because they are always worried about being broke instead of worrying about how to be successful.

    Trevor Monaghan
    Chartered Accountant
    Climax Business Strategies
    http://www.climaxbusiness.com.au

    #1063972
    Ms_X
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    Thanks to everyone, who answered my questions. I still want to lodge my company’s tax return myself and I still have some more questions to ask. I looked on ATO website but could not find exact dates by when company must lodge tax return. Is it same as for Individuals? I found company Tax Return INstructions for 2011. I will read it through and will follow the steps.

    And I have also looked in Newsagents shops but could not find any Tax Pack for businesses:-( Maybe anybody knows if I could download it or it will be available after certain date?

    Thanks again in advance:-)

    #1063973
    SalenaKnight
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    lol – there is no tax pack for businesses.

    You’ve downloaded the forms, now you need to get all the info out of your accounting software.

    I recently did ours, as the accountant didn’t have time to do it (another story, now have a new accountant) and I spent several hours with my book keeper (did you notice the instructions to go with it are over 100 pages long…), plus the previous years return, to get it done.

    It is due in March (so might be late, depending on which year you’re doing). You can download a list of important dates from the ATO website.

    In all seriousness, get a professional to do it if you can.

    #1063974
    Ms_X
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    Thanks for your advice, flower child…I have just searched the ato web site again and found The Company tax return form (NAT 0656-6.2011) for the 2011 year:
    http://www.ato.gov.au/content/downloads/TP00277179nat06562011.pdf

    So I guess following the guidelines and filling it will not be that bad…As I opened my business in February this year, I have not earned that much and it would not be complicated for me to do it myself. The only thing bothers me is at the end of the from: Tax agent’s declaration. Can I sign it myself?

    #1063975
    Trevor Monaghan
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    You can certainly lodge it yourself, you just leave the tax agent section blank. Make sure you answer every question from start to finish as the ATO will be paying extra attention because you don’t have a tax agent. It’s one of their risk factors.

    Pay special attention to the questions on Personal Services Income and make sure you complete the questions relating to Small Business Entity and complete all of the balance sheet sections with your assets, liabilities and shareholders funds. If you’ve paid wages or dividends to associates make sure you complete those sections as well. They are some of the things that the ATO will want to see filled in, even if the answers are zero.

    You also need to decide if you will be using the cash basis and whether you using the small business pool for depreciation.

    And because it’s your first year you can claim your company setup costs (called black hole expenditure) at 20% per year for this year and the next 4 years.

    Good luck and let us know if you are stuck on any particular section.

    #1063976
    Ms_X
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    Thanks a lot Trevor for your advice. I will try to do everything as you said and if I will have a question ( which probably be the case), I will ask here:-)

    #1063977
    Trevor Monaghan
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    Ms_X, post: 83562 wrote:
    Thanks a lot Trevor for your advice. I will try to do everything as you said and if I will have a question ( which probably be the case), I will ask here:-)

    Good luck Ms X, just remember not to skip any questions as they are all mandatory. Post any questions you have on this thread and I’ll do my best to help you get it done.

    #1063978
    King
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    Don’t forget you can also get free advice from the ATO.

    #1063979
    Ms_X
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    Hello again,

    Just started my tax return preparation and reading the ATO instructions on how to prepare one, in which I have found that company tax return should be lodged together with schedules. So I would like to ask do I need to fill all the schedules or I do not need any,since I just started my business recently and it is really small home based business at the moment,registered as Pty Ltd.

    Thanks to everyone in advance.

    #1063980
    Trevor Monaghan
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    Ms_X, post: 92806 wrote:
    Hello again,

    Just started my tax return preparation and reading the ATO instructions on how to prepare one, in which I have found that company tax return should be lodged together with schedules. So I would like to ask do I need to fill all the schedules or I do not need any,since I just started my business recently and it is really small home based business at the moment,registered as Pty Ltd.

    Hi Ms X again,

    To be safe, you should print out and attach ALL of the tax return schedules. Even if you put a zero at all of the labels. That way the ATO won’t have to wonder whether you’ve accidentally missed anything. Remember that you don’t want to necessarily flag yourself as an audit target by making the ATO have to “think” about you! Audits are painful, even if you get everything right.

    Let me know if you need any more help as you get to the schedules.

    #1063981
    Ms_X
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    Hi Trevor and thank you very much for your advice. I will do as you said and will probably come back with some more questions soon.

    Thanks once again:-)

    #1063982
    Ms_X
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    And here I am again with the question about schedules. I am slowly going through the information from the ATO website regarding the Tax return preparation for company and I have two questions:

    1) There is a list of schedules here under “Forms” :http://www.ato.gov.au/taxprofessionals/pathway.aspx?sid=42&pc=001/005/076&mfp=001/005&mnu=50712#001_005_076
    How should I know which ones I have to prepare for my company? Obviously I do not need the ones that stand for trusts and partnerships…
    2) Is it true that if I lodge signed company tax return together with the schedules, then I will not need to sign each of them individually?

    Thanks a lot for your time and help

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