Seeking Assistance with Tax Situation (I Haven't Lodged My FY16/17 Return!) - Multitude of Questions

illumination on 01/11/2017 - 00:35
Last edited 01/11/2017 - 01:10

The deadline for tax returns for FY 2016-17 just passed. Me being lazy me have left it until now and I still have not lodged my tax return. I hate tax and find it so uninteresting, boring. It seems it's about time for me to pay the price!

First question, and probably most important question.. what is the penalty for lodging it late?

Second question. Can anyone recommend an accountant or tax agent to help me look after my tax affairs? I feel like I have most financial things set (and you'd hope so, being such an active Ozbargainer) but tax is definitely one area where I absolutely struggle. I definitely do not know anyone that I can consistently rely on on an ongoing basis when it comes to tax. I'd like an accountant who can understand my Ozbargain tendencies.

Third question. I stumbled upon Nixer Online Accounting which looks quite good. Has anyone used them, and if so does anyone have a referral? It appears both referrer and referee get something. Interestingly, "nixer" search results on Ozbargain and Google yield very little info.

[Warning: Length] Fourth question. Given my situation, I have always felt I could just do my tax return myself. But I've found that it's a more complex than I had expected and I didn't log everything as well as I had thought. I also think over the years there were things that I could've claimed on, but I either forgot to do it at the time or was not aware of it.

Here are my considerations:

  • I work a regular, day, office job with very little work expenses which I can claim on. My PAYG summary is pretty straightforward and gets autofilled.
  • I'm an Uber (and GoCatch) Driver and I thought Uber/GoCatch income would not get added to personal income. Stupid me. LOL. I don't remember what I read that made me think this.
    • I didn't keep logs of driving after my first quarter, because I assumed the above. In addition, I have a salary sacrificed car and I do not pay GST on a lot of the running costs of the vehicle. I believe this also means I can't claim GST credits for expenses (e.g. fuel).
    • I do now understand though that the logging does not need to be as precise as I did in my first quarter. I used to log my Uber trips really precisely. Start time, end time, Odometer at trip start, Odometer at trip end, start location, end location.
    • I would imagine I can claim on other expenses like car washes, mints, water bottles.. but I don't have receipts for some of these expenses. What if I bought a Scoopon at 10% off for carwash? How do claims work for expenses like that?! What if I paid $8 at one of those coin operated car wash places which don't even issue receipts?
    • For those who are somewhat familiar with the dynamics of Uber driving, I almost exclusively drive Uber by specifying my destination. I generally do this to and from work. I very rarely drive on GoCatch, although I am technically registered as a GoCatch driver.
    • The myGov website for filling in the Business expenses is quite confusing (to me). The questions asked all appear geared towards those running more "traditional" businesses that provide services/sell physical products and hire employees. It asks for questions about expenses on wages, supplies, etc.
  • As mentioned in one of my subpoints above, I have a salary sacrificed vehicle (Novated Lease) but I don't think this adds any complication to my scenario.. or does it?
  • I have Income Protection but I do not remember whether it's paid through my superannuation or out of my own pocket (I should check with my financial adviser, this probably isn't difficult to find out). I believe if it's paid from superannuation it cannot be claimed.
  • I have a financial adviser (and I pay a fee for it) - I believe I am entitled to claim the fees?
    • I am not keen to seek tax assistance through my financial adviser because I feel they will find my "slutting" (PHI, Mobile services) extremely confusing and it may in fact make our relationship somewhat awkward.
  • I have a small number of ETFs (Vanguards) which pay some dividends here and there but I think these get autofilled.
  • I've been an inconsistent Private Health Insurance slut, but I do not earn above the threshold which triggers a 1.5%? premium for not holding PHI. Actually, I might earn above the threshold if you include Uber Income…
  • I lodged a tax return at H&R Block last year for FY 15/16 and paid ~$150 - which I also believe I should be able to claim, but I cannot find my (electronic) receipt (and forgot which card I paid on because I'm a Credit Card slut too). Also felt the $150 was extremely expensive as I felt the service was not personalised and it was just a guy sitting across the table from me clicking a few buttons. I think this is really what mainly put me off trying to find another tax agent this year + the lack of interest.
  • I intend to claim a portion of my laptop expenses (bought ~2 years ago), phone and electricity expenses for work because I sometimes work at home. I know I already claimed a portion of laptop & phone from either my last year's tax return or the one before that, and I assume I can't claim again, but I might be able to claim on depreciation?
  • Given that I am a SIM slut, my monthly mobile expenses are extremely inconsistent and are not recorded/tracked well. I guess it's probably not worth trying to claim on monthly expenses in a case like this huh?
  • I have a limited number of Apple stocks in the US stock market which I got during my time working for Apple as part of the Employee Stock Program (forgot the proper name). Over the years that I have held these stocks, I have never understood what I am supposed to properly do with this from a tax perspective, although I have received paperwork annually.
  • [For the following year] Polished Man $30 donation for Grill'd Burgers - can this be claimed? I think I read something say this can't be claimed because you "get something in return" (the Grill'd burgers) - but you aren't getting this from the charity to which you donated?
TLDR

I want some help.

I have been an absolute lazy bugger with my tax return and have not done it yet and the Oct 31 deadline has now just passed. I have always found tax extremely confusing, boring, and tedious over the years and have never tried to seek clarity. What are the implications of this (financial or otherwise)?

I'm a regular office worker with a day job, and I'm also an Uber driver. I drive my salary sacrificed vehicle for Ubering. I stupidly assumed Uber income didn't get added to personal income. I have a multitude of questions over my tax situation that are making me feel so overwhelmed.

Seeking assistance for my overall tax situation - probably need an Ozbargain tax accountant to assist me and I ideally want someone who I can rely on on an ongoing basis, otherwise I'm just gonna feel this at this time every year. Someone who understands my Ozbargain tendencies.. or is it time to stop? Is all the slutting not worth it?

Thanks in advance and appreciate any advice anyone can give.

TLDR of TLDR
  • Missed 31 Oct tax lodgement deadline due to sheer laziness. What's the penalty?
  • I am very confused by my tax situation and want assistance from a tax agent/accountant that can appreciate an individual's Ozbargain tendencies/complexities.
  • I am a regular day worker who is also an Uber driver
  • I have not been logging my Uber trips properly/clearly
    • What can I claim on as an Uber driver with a salary sacrificed vehicle?
  • I have a multitude of other tax questions in my mind based on my situation
    • Salary sacrificed vehicle
    • Income protection
    • Private Health Insurance (on and off)
    • Some uber expenses?
    • Can I claim on laptop, phone, electricity, as I work from home sometimes?
Financial

Comments

  • Euphemistic on 01/11/2017 - 00:52
    +6

    TLDR is TLDR.

    Go to a tax agent.

    Finished my tax return, and my wife's, at about 1145. Took some searching to find the receipts I could. Lodged online, delayed it because we will have a tax bill this year after selling an investment property with a pretty big capital gain. Should have done it a bit earlier so I had more time to find more details. Thank goodness for auto fill details on the ATO form, saved a heap of time.

    • illumination on 01/11/2017 - 01:10

      TLDR is TLDR.

      Fair point.

      Did a TLDR of the TLDR lol.

      Go to a tax agent.

      Definitely willing to. Basically asking for recommendations now.

  • hmac on 01/11/2017 - 00:56
    +9

    this is intense

  • Gunther on 01/11/2017 - 01:03
    +4

    Go to a tax agent.

    You are confused and have too many unknowns.

    • illumination on 01/11/2017 - 01:12

      Go to a tax agent.

      I am absolutely willing to. Just want to go to someone who will actually be worth paying for.

      In the middle of my wall of text I mentioned I paid ~$150 for someone at H&R Block last year and it felt like an absolute rip off. I felt he just asked a couple of questions, ticked some boxes on his screen and didn't care too much about an individual's tax concerns.

      • Baghern on 01/11/2017 - 11:07
        +1

        Well a electrician doesn't do much buy you pay through the nose… because of that expertise.

        • illumination on 02/11/2017 - 16:14
          +1

          But Electrician #1 and Electrician #2 will be paid to do a task which I imagine wouldn't differ too much, e.g. fix my intercom.

          I don't care how it's done or how long it takes, as long as the end result is it works, so I'd probably pick the cheaper one.

          I'm willing to pay more for an accountant, but I care about the process - not only the end result.

        • HighAndDry on 14/11/2017 - 15:32

          Yup. Reminds me of a story of some engineer who billed a factory owner $100 for replacing one screw. The owner was outraged and demanded an itemized invoice, to which the engineer replied with:

          Screw installation: $1
          Knowing where: $99

      • marquise on 28/11/2017 - 15:57
        +1

        I used H&R Block once years ago. They had a guy with very basic tax knowledge ask a series of standard questions and collect paperwork, then another group back at head office would check/process the whole return. I got charged the Medicare Levy Surcharge (even though I had private health insurance) because I didn't have the private health statement with me and he didn't bother to check if I actually had insurance. I would never use them again.

        Find a proper tax accountant you can build a relationship with that asks the right questions (and gets you thinking of more) about your unique situation. Every year when you go to do your return you can sneak in all those tax questions you've been pondering on all year. Not just about your current situation, but also potential future ones. Think of that as your reward lol.

  • tsunamisurfer on 01/11/2017 - 01:07
    +1

    If you use a tax Agent you are not late as those going through a Tax agent have a later due date.

    • illumination on 01/11/2017 - 01:14

      Really? Source?

      Something interesting I noticed in myGov is that it says the deadline for tax return Jul 16 - Jun 17 is 115 May 2018. Not sure why.. I wonder if that's related?

  • kati on 01/11/2017 - 02:54

    I lodged my tax returns 5 years late once. Trust me, it wasn't fun doing 5 years of tax returns in a row. No fine because I was owed a refund.

    I would highly suggest contacting Paul @ PFI http://www.pricefinancial.com.au/ who helped me with lodging all my late ones. He knows his stuff. He's in Sydney, but has interstate clients. I'm in the same city but I've only contacted them via email, really easy to deal with and great value accountants.

    • illumination on 02/11/2017 - 16:15

      Ok, I'll consider him

      You're the only one that's given a recommendation so far..!

  • chumlee on 01/11/2017 - 06:39
    +2

    The deadline has passed if you do it yourself. If you use an accountant the deadline is May

    • Baghern on 01/11/2017 - 11:08

      No, only if you had registered with an Accountant/tax

      • illumination on 02/11/2017 - 16:15

        So.. chumlee + others who have said this are wrong?

        • Baghern on 02/11/2017 - 17:45

          Yep they are wrong

          The deadline is the same for everyone.

          Registering before the deadline is at least verifying you're doing it

  • whooah1979 on 01/11/2017 - 06:43
    -3

    First question, and probably most important question.. what is the penalty for lodging it late?

    Nothing.

    • [Deactivated] on 01/11/2017 - 07:32
      +3

      What is the penalty for spreading misinformation on Internet forums? Nothing.

      Failure to lodge on time penalty: https://www.ato.gov.au/General/Interest-and-penalties/Penalt… Just flip a coin: "Generally we don't apply penalties in isolated cases of late lodgment (…) If we apply FTL penalty we'll send you a penalty notice stating the amount and due date of the penalty".

      • mskeggs on 01/11/2017 - 07:43
        +1

        Most tax payers are owed a refund, so usually don't get penalised if they are late. I believe if you owe money you will at least have to pay penalty interest.
        In any case, the op has complicated tax affairs and has recognised they need an accountant, so they aren't late yet!

      • whooah1979 on 01/11/2017 - 09:09
        +1

        You're right. There is penalty for late lodgements. However, op has nothing to to worry about being less than 10 hours late.

        • illumination on 02/11/2017 - 16:16

          That is assuming I did it within an hour of you having posted that comment

          And your initial comment would still be technically wrong then lol

  • ms_caz on 01/11/2017 - 07:41

    I had 20 years worth of un-filed tax returns - no fine because I was owed money. Took it all to a tax agent and left them with the box of receipts I did have - although they were sorted into years at least!

    I think that for this year just go back to your H&R Block person and take them the material that you have and get them to talk you through it. Ask them questions and ask them to tell you what you need to do in subsequent years.

    That gives you plenty of time to look for a "good" tax agent for next year and/or learn how to do it yourself/understand what you can and cannot claim.

    As an aside, I worked in the Tax Office enquiries section many years ago (last century, in fact) and we had a pretty poor opinion of volume Tax Agents such as Block - it seemed that we were always getting (unofficial) complaints from taxpayers who were dissatisfied with them and the information they provided. Also HR Block didn't ever seem to tell their clients that they had an extended lodgement date of about January so when people rang to enquire about the progress of their return and we told them it hadn't even been submitted, it wasn't a very satisfactory conversation and you can only imagine how they went away feeling!

    But for you - go back to where you started, be actively engaged and ask questions - their late lodgement date will benefit you. Other agents probably also have this, but can you be bothered searching? I reckon - do whatever is most expedient for NOW and plan to be better organised and more involved in future tax years.

    • CyberMurning on 01/11/2017 - 07:49
      +4

      If you were work in tax office how come you missed out 20 years of your tax return?

      • ms_caz on 01/11/2017 - 17:45
        +1

        Because I worked in the tax office some time before I let my tax affairs slip and didn't manage to get them submitted. I said it was many years ago! It wasn't a case of not knowing what to do, it was a case of just not doing it. Then things snowballed and it was not worth my time to sort it out myself - easier to pay somebody to do it for me.

        I've had a working life of near 35 years so there is plenty of time there to both work for the tax office and to not submit my returns for 20 years.

  • CyberMurning on 01/11/2017 - 07:49
    +1

    Yeah ask those questions to tax agent.

  • peterpeterpumpkin on 01/11/2017 - 09:35

    What's the going rate for an accountant (rather than a tax agent) to do a tax return with OP's level of complexity these days?

  • AJW on 01/11/2017 - 10:49

    Unfortunately I am late every year, and even when owing small amounts they don't usually fine - bigger fish to fry I guess…

    • kati on 01/11/2017 - 10:50

      Exactly - like the Plutus payroll fraud - that's the big fish!

  • txchou on 01/11/2017 - 11:48
    +1

    Don't forget it you have an outstanding tax debt and don't pay you will bit hit with general interest charges (GIC)…And it's a VERY high rate compounds daily.

    Don't know if that will apply to you because I just skimmed your post.

    You should be able to do it yourself but it sounds like you might find it too hard and too boring. ATO had an app to help you record your deductible expenses too (I'd start using it now for this income year if I were you):

    https://www.ato.gov.au/general/online-services/in-detail/myd…

  • entercoolusername on 01/11/2017 - 14:04
    +3

    I am not an accountant, but I can give you some suggestion.

    1.Stop being lazy
    2.Collect all your expenses in receipt or in bank transactions- no receipt no claim( i can be wrong here). in future take photos of receipts especially if you run a business.
    3.Go to a tax agent, don't stress it's not end of the world, worst you may have to pay some fine,consider it as a lesson.

    I'm an Uber (and GoCatch) Driver and I thought Uber/GoCatch income would not get added to personal income. Stupid me. LOL. I don't remember what I read that made me think this.- Since how long have you been working for these companies?

    I didn't keep logs of driving after my first quarter, because I assumed the above. In addition, I have a salary sacrificed car and I do not pay GST on a lot of the running costs of the vehicle. I believe this also means I can't claim GST credits for expenses (e.g. fuel). - would you know the odometer reading from the day you started till date? each trip you have done should give you a kms and cost, you should be able to get this. Use that data and sort it to get your log book readings.For fuel you need have a receipts.

    I do now understand though that the logging does not need to be as precise as I did in my first quarter. I used to log my Uber trips really precisely. Start time, end time, Odometer at trip start, Odometer at trip end, start location, end location. - Preciser the better. use excel sheet.

    I would imagine I can claim on other expenses like car washes, mints, water bottles.. but I don't have receipts for some of these expenses. What if I bought a Scoopon at 10% off for carwash? How do claims work for expenses like that?! What if I paid $8 at one of those coin operated car wash places which don't even issue receipts?- No receipt no claim, consider this time as a lesson, Example: $10 for mints pack(big pack from officeworks) GST claim 90cents So,not worth the time if you don't have receipts.

    For those who are somewhat familiar with the dynamics of Uber driving, I almost exclusively drive Uber by specifying my destination. I generally do this to and from work. I very rarely drive on GoCatch, although I am technically registered as a GoCatch driver. - Doesn't matter you gained income.So you need to declare your income.

    The myGov website for filling in the Business expenses is quite confusing (to me). The questions asked all appear geared towards those running more "traditional" businesses that provide services/sell physical products and hire employees. It asks for questions about expenses on wages, supplies, etc.
    As mentioned in one of my subpoints above, I have a salary sacrificed vehicle (Novated Lease) but I don't think this adds any complication to my scenario.. or does it?    - See an tax agent, stop stressing

    I have Income Protection but I do not remember whether it's paid through my superannuation or out of my own pocket (I should check with my financial adviser, this probably isn't difficult to find out). I believe if it's paid from superannuation it cannot be claimed.- if its through super may be not, but again see you tax agent.

    I have a financial adviser (and I pay a fee for it) - I believe I am entitled to claim the fees?- Don't know ask your tax agent.

    I am not keen to seek tax assistance through my financial adviser because I feel they will find my "slutting" (PHI, Mobile services) extremely confusing and it may in fact make our relationship somewhat awkward. - That's fine go find someone else, they might find faults in your financial adviser or suggest a better one.

    I have a small number of ETFs (Vanguards) which pay some dividends here and there but I think these get autofilled.- ** Don't know, question for tax agent.**

    I've been an inconsistent Private Health Insurance slut, but I do not earn above the threshold which triggers a 1.5%? premium for not holding PHI. Actually, I might earn above the threshold if you include Uber Income… - Doesn't matter see an tax agent they will help you

    I lodged a tax return at H&R Block last year for FY 15/16 and paid ~$150 - which I also believe I should be able to claim, but I cannot find my (electronic) receipt (and forgot which card I paid on because I'm a Credit Card slut too). Also felt the $150 was extremely expensive as I felt the service was not personalised and it was just a guy sitting across the table from me clicking a few buttons. I think this is really what mainly put me off trying to find another tax agent this year + the lack of interest.- No receipt no claim, unless you go back to the same person as they might have a record of your payment.

    I intend to claim a portion of my laptop expenses (bought ~2 years ago), phone and electricity expenses for work because I sometimes work at home. I know I already claimed a portion of laptop & phone from either my last year's tax return or the one before that, and I assume I can't claim again, but I might be able to claim on depreciation? - If you still use it for work you can claim but not the same amount as the value depreciates, I may be wrong here as I don't how much you claimed previously.

    Given that I am a SIM slut, my monthly mobile expenses are extremely inconsistent and are not recorded/tracked well. I guess it's probably not worth trying to claim on monthly expenses in a case like this huh? - No record no claim.

    -I have a limited number of Apple stocks in the US stock market which I got during my time working for Apple as part of the Employee Stock Program (forgot the proper name). Over the years that I have held these stocks, I have never understood what I am supposed to properly do with this from a tax perspective, although I have received paperwork annually.- Don't know see a tax agent.

    [For the following year] Polished Man $30 donation for Grill'd Burgers - can this be claimed? I think I read something say this can't be claimed because you "get something in return" (the Grill'd burgers) - but you aren't getting this from the charity to which you donated? - you can claim the donation, but if there no record no claim.

    • illumination on 02/11/2017 - 16:22

      Thanks for your detailed response:

      Since how long have you been working for these companies?

      Uber/GoCatch - about 9 months. Although technically I am not an employee. Uber drivers are independent employees "running their own business" using Uber purely as a platform. I think GoCatch is the same.

      would you know the odometer reading from the day you started till date? each trip you have done should give you a kms and cost, you should be able to get this. Use that data and sort it to get your log book readings.For fuel you need have a receipts.

      I can probably get a rough idea. I think I have fuel receipts, but I claim fuel via salary sacrificing and I have a feeling I may not pay GST on my fuel.

      Doesn't matter you gained income.So you need to declare your income.

      I mentioned I do Ubering to/from work because usually you cannot claim for your fuel when you drive to work as part of your regular commute. However, because I am "running a business" on my way to work (by being online), I believe I should be able to claim the mileage from the time I am online to the time I go offline.

      I know I need to declare the income and I didn't mean it from that angle at all.

      In any case, thanks very much for your reply

      • entercoolusername on 02/11/2017 - 23:37

        You and Uber/go catch have an agreement so you are kind of a franchisee, not employee, but you still work for Uber/go catch to make money.

        Just by being online you cannot claim your expenses, because you do this as a side gig it becomes harder for the tax agent to justify the claims, so from their(tax agent) point of view during your commute from work to home or visa versa if you picked up a job then they can make your claim valid. So regardless how far and long you drive if you don't earn money in this case pick up someone and drop them then you cannot claim. Otherwise everyone would just go online and reject the requests and claim expenses. I may be wrong but an tax agent can sort this out for you.

  • mrmc on 01/11/2017 - 16:41

    if your an uber driver, u need to be lodging quarterly BAS's and include the income and expenses ex. GST on your individual tax return.

    Also most tax agents charge more if they are also filling out the soletrader/business forms of the tax return.

    • illumination on 02/11/2017 - 16:22

      Yep I'm aware of needing to lodge quarterly BAS's which I have been doing.

  • JetLi on 02/11/2017 - 12:09
    +1

    Go to your local H&R Block mate, stop stressing, just get your return lodged ASAP and you'll be fine, unlikely you'll get a fine. You are overthinking this whole tax return process, it's really not that hard.

  • marquise on 28/11/2017 - 16:00

    By the way, you're not lazy (being a sim whore takes a lot of work!). There's always something that you'll avoid until you either do it once or get into a routine of doing. It's a different thing for everyone.

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