If you live in terror of tax time, you need to read this

IF YOU’D rather endure a root canal than wade through your tax receipts, we bet you’ve used one of these seven excuses to put off the deed.

Nathan Percy from Smart Tax, Murray Street is a tax accountant who just loves tax time high season

WITH just two months to go until the deadline for Australians to file their tax returns, the clock is ticking.

While the temptation to put off the hated task is strong, the consequences may be even more unpalatable, says MoneyBrilliant chief executive Jemma Enright.

“Putting off filing a tax return is an all too common issue. More often than not, it comes down to that feeling of dread when you’re not on top of your finances,” Ms Enright said.

“The only way to get back in control is to take the bull by the horns and get organised.”

With that in mind, we bring you to top seven mythical excuses Aussies use to justify their tax time procrastination — and why they need to change their perspective.

1. IF I IGNORE MY TAX, IT’LL GO AWAY

In your dreams, honey. Tax is one thing that never goes away. Procrastinating will only leave it looming over you for longer. The only way to turn the issue around is to take action.

2. I’M GOING TO GET A HUGE PENALTY FOR BEING LATE

You may incur a late fee, just like back in the old days when you got library fines for returning books late. However the Australian Taxation Office can be pretty understanding. Have a chat to them and see what you can work out. Or even better, get it in before October 31.

ATO Assistant Commissioner, Graham Whyte, recommends letting the tax office know about any struggles: “If you’re worried that you might not be able to meet the deadline, it’s important to that you give us a call on 13 28 61 and let us know about your circumstances,” he said.

3. I PROBABLY OWE THE TAX MAN A LOT OF MONEY

Mr Whyte said it is “important to remember to lodge on time, even if you can’t pay by the due date”.

If you’re on the correct tax code, things should work out fairly correctly for you. In fact, 77 per cent of Australians get a tax refund.

If you’re really scared about this, have a chat to your employer or the ATO to see how this can be best worked out to minimise the hit to your wallet. The ATO have a handy calculator to help with this.

4. I CAN’T AFFORD TO PAY MY TAX RIGHT NOW

This will unfortunately only make things worse and you’re likely to rake up fines the longer you leave things. Mr Whyte advises to call the ATO office to discuss your circumstances or enter a payment plan online. “While most people do pay on time, we understand that sometimes people run into short term difficulties and may not always be able to pay their tax in full by the due date. If you ever find yourself in this position, we encourage you to contact us as early as possible to work something out,” he said.

5. I CAN’T HANDLE THE STRESS OF DOING IT NOW

It’s much more stressful leaving this uncompleted. Your finances — and therefore your tax return — need to be a priority. The longer you leave it, the worse it will get. Set aside some time to action this and you’ll feel all the better afterwards. If it’s all too much, get an accountant — they may be able to secure a better outcome than you’d hoped for, and having someone waiting for you to send through all your documents can boost your motivation to get organised.

6. I CAN’T DO MY OWN TAX RETURNS

It’s actually easier than you think to fill in your tax return online.

“Our big tip is that if you wait until mid-August, almost all your information will be pre-filled for you so if you’re lodging online, this will help you avoid any potential errors,” Mr Whyte said. “If you’re using my Tax, all you have to do is double-check that your pre-filled information is correct, input any deductions and submit.”

7. I’M ALREADY TWO YEARS BEHIND, SO IT DOESN’T MATTER IF I’M LATE AGAIN

Getting your tax in on time does make a big difference to how the tax department views you, to fines and penalties and to refund payments. The ATO has a lot of information on you — don’t you want to have a nice clean record?

“The only time to put your tax sins behind you, and turn over a new financial leaf, is now,” Ms Enright said. “I liken it a little to going to the dentist. You put it off thinking it will be painful but you always walk out feel sparkly and wondering what you were worried about. Diarise time to do it, make a plan for dealing with your expected outcome and seek help from the experts should you need it.”