How many times have you received a bill from the Australian Taxation Office (ATO) and shoved it aside, hoping it will disappear?
We all know that sinking feeling when an envelope arrives branded ATO and, despite the best of planning, there’s not enough cash in the tin to pay the bill inside.
But we also know tax payable to the ATO has to be paid. So… why put your head in the sand – you need to take control of your taxes now because what doesn’t hurt too much today will come back with a sting in its tail in the next few months.
Find Your Way Through
Believe it or not, the ATO does understand the financial pressures associated with being a sole trader, contractor or small business. If you can’t pay your tax on time, it’s well worth contacting them to find a solution (or getting your tax agent or authorised representative to do it on your behalf).
Usually you’ll be able to negotiate a payment plan that will let you pay the tax debt back in manageable regular instalments plus any additional payments you’re able to make. There will, of course, be interest charged, but hey, at least you’ll be managing your obligations.
Don’t forget that the instalments you pay through your negotiated payment plan won’t replace your required ongoing instalments – they simply pay back the debt.
The ATO has a calculator that will help you work out how much you can afford to pay each month. It’s worth having a play with this before you contact them to make your payment plan arrangement.
And, if your income tax or activity statement debt is $100,000 or less, you may be able to set up a payment plan online.
Don’t let your taxes control your life
At Ayers Management we can help you manage your administration so you can focus on developing your business. We can also introduce you to a reputable bookkeeping and accounting service to help you ta of your tax situation.
Contact us today.