Sometimes your business encounters some tough months and you find yourself in a pickle with ATO. Your BAS lodgment is overdue, and it is causing you stress. It isn’t the end of the world for your business. If there’s one thing that ATO wants, it is for your business to succeed. They understand that sometimes, things can be a bit difficult; so you can catchup with ATO payment for your overdue BAS/IAS statement.
What is the ATO Payment Plan?
ATO understands that small businesses are an important employment and solution source for the community, so they offer a payment plan to help keep small businesses running. ATO payment plans enable your small business to get through difficult times by letting you work out a suitable payment scenario and manage your tax debt.
Payment Plan Conditions
Before you set up your payment plan, it is very important to know about ATO’s payment plan conditions.
- All of your credits and tax refunds will be used to lessen your tax debt, but these won’t replace your required installment plan.
- A General Interest Charge (GIC) will amass until the debt is paid off.
- You can pay off your debt anytime.
- You can make additional voluntary payments.
- You still need to lodge your BAS statements and tax returns and timely pay any associated liabilities.
If you want to know how much interest you’ll be charged and the length of time to pay your tax debt, you can use ATO’s payment plan estimator. This however does not guarantee super charge debts.
How to Manage Your ATO Payment Plan
Here are six efficient tips for managing your payment plan without defaulting.
- Be sure you pay your first payment on time. It’s best if you could do this before the scheduled due date. Avoid delayed payments at all costs.
- To ensure you don’t forget monthly recurring payments, schedule them a few days before the due date.
- Allow time for your payments to clear by doing it a few days before the due date.
- Your subsequent BAS lodgments is not included in your payment plan, so you still need to pay it in full. If you can’t do so and would like to add an additional BAS to the current plan, contact ATO as soon as possible.
- If you can’t pay an installment, contact ATO. You can reach them through their online services or call them during their operating hours. Discuss your circumstances so you can change your installment amount or due date. You can also ask for the help of a registered BAS agent. We can help you get an extension on your payment.
- Defaulting more than three times will affect your credit rating. This will trigger a process where ATO will request more information on your financial situation, and your ability to pay in the future. When you reach this point, ATO may contact your bank and access funds from your account without your permission.
Follow these tips and you’ll soon be off your debt. One last thing to remember, though. Before making your last payment, check your account balance (the final amount to pay) through the ATO online services for individuals, through myGov for sole traders and through ATO’s business portal for other entities.
If your BAS statements are overdue and you’d want a payment plan, it is best to ask help from a professional bookkeeper. An expert can help you analyze your business finances so you can come up with a plan to improve your cash flow and turn your business around.
ACT Bookkeeping Group is a registered BAS agent. Our expert bookkeepers can give you the right advice. If you need help for your BAS lodgement and ATO payment plan. We also help our clients realize their business’ current financial position and help them develop a plan for profit. We can assist you sort out different bookkeeping intricacies, so you can focus on running and growing your business.
We’re available for consultation 24/7. Contact us today and book a free consultation for your bookkeeping needs.