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Common blunders to avoid when calculating your fuel tax credit
Common blunders to avoid when calculating your fuel tax credit

Commerce

Common blunders to avoid when calculating your fuel tax credit

If you choose to calculate your fuel tax credit, you must avoid over claiming. How do you go about the calculations carefully to mitigate any errors in your claim? Now that businesses are trying to make the right claims, it is not all who do it correctly and that just complicates the process faster. In this article, you will identify the common blunders you have been doing or will do in the future that will complicate the fuel tax amount you finally claim. Before you lodge your BAS, ensure that the following blunders are avoided while amid the fuel tax credit calculation.

Forgetting to double check fuel activity

Without monitoring how fuel is used at the business you manage, it can be very hard to know the amount of fuel tax returns you should claim. There should be appropriate use of fuel both on and also off roads. Making claims for ineligible activities is also a mistake a lot of people make,for instance making claims for fuel that was used for lighting purposes or when your vehicle was driven on public roads.

Misplacing or not keeping records

There can be no claims if there are no records that can be used to prove your claims are true. If you are the type to keep on misplacing records, having the right fuel tax calculation can be a challenge. With the record available, ascertaining how much was used for fuel or better yet how the fuel was used; making a claim becomes so much easier. PS reports and other records will help pinpoint the exact locations and date for you to determine your fuel consumption with ease. Receipts are also part of the transaction documents that can be used to prove a transaction. You should therefore try as much as you can to keep most if not all of your fuel records.

Using the wrong shortcuts

There are simplified methods that one can use for computing their tax credits, however when wrongly used, it can easily be a wrong move. The most common shortcut is the apportionment technique which should not be done as separate calculations. There are a lot of methods to help you calculate the right tax amount for claiming but you must know each method and the exact situation when it is appropriate to be used. Confusing the calculation strategies you are to use can be disastrous as it culminates to waste of time and energy.

Poor computing and calculation

This is now a calculation error on yourpart where you use the wrong figures hoping to get a claim. If you do not have the right financial documents to prove your fuel consumption and usage, knowing what amounts to calculate will be based purely on speculation which is never ideal for accuracy. The most common blunders people do today includetransposition which falsifies the amount you are to claim and that will never be unnoticed. The other mistake is multiplying the rate in your work with the cost of fuel. The right way is use the fuel amount multiplied with the recommended rights to know how much your claim is.

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