Manage Your ATO Payment Plans for Overdue BAS Statement
If your company has a bad couple of months, it isn’t hard to find yourself in a bit of a mess with the ATO. If your BAS submission is past due, it can really start to cause you anxiety and stress you out. We are here to tell you though; it isn’t the end of the world if your company suffers a few lean months. To most business owners surprise the ATO are actually very supportive, and they want businesses to succeed. They understand that life can be tough sometimes and that has been especially true for many during the last twelve months. The ATO will allow you to pay your overdue BAS statement in staged payments but you must communicate with them. Even if you cannot pay your allocated amount you should still lodge your Activity statements. To not do so will get you into more hot water than lodging but not paying. Here are a couple of tips on how to effectively organise to repay your overdue amount.
What Is an ATO Payment Plan?
The ATO recognizes the importance of small businesses as a source of jobs and solutions. In order to help these businesses survive the tough times, they are happy to arrange a payment plan to assist small businesses in staying afloat. Payment plans from the ATO are intended to help your small business come out the other end. Having a payment plan in place will allow you to work out a payment schedule and handle your tax debt with the full cooperation of the ATO.
The Importance of Maintaining a BAS Log Your BAS will assist you to keep track of your company’s finances and allow you to maintain correct, up to date records. You’ll be able to measure your GST and other obligations ahead of time. But you can only do that if you keep track of your profits and expenditures correctly. You can then use this to send reports and payments to the ATO even before the end of the quarter. It will ensure that you do not miss an agreed-upon payment and will avoid any legal problems or ATO fines. You can also indicate the direction that your business is taking by completing your BAS. and focusing on the areas that need the most attention.
Conditions of the Payment Plan It’s important to understand the ATO’s payment plan conditions before you set up your payment plan.
- Your tax debt will be reduced by all your deductions and refunds, but they will not replace your mandatory installment plan.
- Once the loan is paid off, a General Interest Charge (GIC) can accrue.
- You have the option to pay off your debt at any time.
- You have the option of making further voluntary payments.
- You must also file your BAS statements and tax returns, as well as settle any related obligations on time.
- You can use the ATO’s payment plan estimator to find out how much interest you’ll be paying and how long it will take you to pay off your tax debt. The team at Keeping Numbers can help you to manage such events effectively.
How To Manage Your ATO Payment Plan
Here are some helpful hints for keeping your payment plan on track without going into default.
- Make sure the first payment is made on time. It would be ideal if you could complete this before the deadline. You should do everything that you can to avoid paying late.
- Schedule monthly recurring payments a few days before the due date to ensure you don’t forget.
- Make the payments a few days before the due date and give them time to clear.
- Your subsequent BAS deposits are not covered by your payment plan, so you must pay them in full. If you are unable to do so and want to add an additional BAS to your existing plan, you need to contact the ATO as soon as possible.
- Contact the ATO if you are unable to pay an instalment. You can contact them through their online services or by calling them during business hours. Discuss your situation and find out whether you can adjust your payment number or due date. You can also hire a licenced BAS agent to assist you. We will assist you in obtaining a bill extension.
- If you default three times in a row, your credit score will suffer. This will start a phase in which the ATO will ask for more details about your financial status and your potential willingness to pay. The ATO can contact your bank and withdraw funds from your account without your permission if you reach this stage.
If you follow these suggestions, you’ll be debt-free in no time and your bookkeeper plays a crucial role in this whole process.
But there’s one more thing to keep in mind. Check your account balance (the final sum to pay) via the ATO online services for individuals, myGov for sole traders, and the ATO’s business portal for other organisations before making the final payment.
If your BAS statements are past due and you’d like to set up a payment plan, you can seek the assistance of a bookkeeper service. An expert can assist you in analyzing your business finances. You can then develop an effective strategy for improving your cash flow and turning your company around. Our knowledgeable and experienced team of small business bookkeeping specialists can provide you with sound advice. If you need assistance with your BAS filing or ATO payment plan, please contact us, we would be happy to chat through your options. We can also assist you in determining your current financial situation and developing a workable strategy. We will help you navigate the complexities of bookkeeping so you can concentrate on running and growing your company.