5 Common Tax Mistakes Small Business Owners Make – and How to Avoid Them

Running a small business is demanding – taxes shouldn’t add to the stress. At Coombs Chartered Accountants, we often see the same avoidable errors pop up year after year. Here are five common tax mistakes and how you can steer clear of them.

1. Missing Tax Deadlines

Late submissions often lead to penalties and interest charges. Set calendar reminders and talk to your accountant well in advance of the due date to ensure you’re prepared.

2. Poor Record Keeping

Without organised records, it’s easy to overlook expenses or misreport income. Keep digital or paper records of all invoices, receipts, and bank statements. Cloud bookkeeping software can make this much easier.

3. Mixing Business and Personal Finances

Using a personal account for business transactions causes confusion and can lead to errors. Set up a dedicated business bank account and use it consistently.

4. Overlooking Allowable Expenses

Many small business owners miss out on deductions they’re entitled to, such as home office use, travel, or professional fees. Know what qualifies and keep receipts.

5. Trying to Do It All Yourself

Tax rules change often. What worked last year may no longer apply. Working with a qualified accountant means you stay compliant and avoid unnecessary costs.