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Вміст надано Bec Buchanan. Весь вміст подкастів, включаючи епізоди, графіку та описи подкастів, завантажується та надається безпосередньо компанією Bec Buchanan або його партнером по платформі подкастів. Якщо ви вважаєте, що хтось використовує ваш захищений авторським правом твір без вашого дозволу, ви можете виконати процедуру, описану тут https://uk.player.fm/legal.
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ATO Payment Plans Explained

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Manage episode 402910510 series 3314267
Вміст надано Bec Buchanan. Весь вміст подкастів, включаючи епізоди, графіку та описи подкастів, завантажується та надається безпосередньо компанією Bec Buchanan або його партнером по платформі подкастів. Якщо ви вважаєте, що хтось використовує ваш захищений авторським правом твір без вашого дозволу, ви можете виконати процедуру, описану тут https://uk.player.fm/legal.

- I would like to acknowledge the traditional custodians of the land on which I recorded this episode, the Coodjinburra People of the Bundjalung Nation, and the land on which you're listening to it. I pay my respects to the elders, past and present, of those lands. I extend that respect to all Aboriginal and Torres Strait Islander listeners. Thank you for sharing this space with me. -
Welcome to episode 100 of the Straight Up Small Business Podcast! This has been an incredible journey, and I'm so grateful to all of you for your support and listenership.

Today I want to give you a guide to payment plans with the Australian Taxation Office (ATO). Payment plans can be a lifesaver for sole traders or business owners struggling with cashflow, so I think it’s crucial to have a good understanding of what they are, how they work, and how to set one up. I’ll also discuss the rules you’ll need to follow, and share some tips for getting out of a cycle of debt.

What is a Payment Plan?:
A payment plan allows you to break down your tax debt owed to the ATO into manageable installments. These installments can be spread weekly, fortnightly, or monthly until the balance is cleared. Payment plans can be set up for business activity statement (BAS) debt, installment activity statement, or income tax debt.

Setting Up a Payment Plan:
Individuals, sole traders, and/or businesses, can typically apply for a payment plan with the ATO online. This is done where you usually handle your taxes. So for individuals and sole traders that’s through myGov, and for companies, it’s online services for business.

Sometimes you might not be able to set up a payment plan online. This might be because the debt exceeds $200,000, or you have overdue debts, or you have previously defaulted on a payment plan. In this case, you can still set up a payment plan, but you will need to contact the ATO by phone.

Once a payment plan is in place, there are a few important rules to follow:
Firstly, you can only have one payment plan per lodgement type at a time. In other words, you can have one payment plan for income tax debt and another for activity statement debt, but not two payment plans for different activity statement quarters simultaneously.

Secondly, installments must be made by the due date, and all future tax lodgments or payments must be made on time. If you are struggling to meet due dates it is crucial to communicate with the ATO and explore alternative arrangements, before your debt becomes overdue.

Mindfulness and Planning Ahead:
While payment plans can provide temporary relief in times of cash flow strain, it is essential to avoid relying on them for an extended period. The goal should be to free yourself and your business from payment plans as soon as possible. To achieve this, it is important to understand your tax savings needs and maintain a tax savings account.

Navigating tax debt can be scary, but it shouldn’t be. This episode shares everything you need to know about payment plans with the ATO which can help you overcome cash flow strain, and work towards financial freedom. I want you to be empowered to make informed decisions that improve your financial situation and build a thriving business!

Where to Find Bec:

  continue reading

105 епізодів

Artwork
iconПоширити
 
Manage episode 402910510 series 3314267
Вміст надано Bec Buchanan. Весь вміст подкастів, включаючи епізоди, графіку та описи подкастів, завантажується та надається безпосередньо компанією Bec Buchanan або його партнером по платформі подкастів. Якщо ви вважаєте, що хтось використовує ваш захищений авторським правом твір без вашого дозволу, ви можете виконати процедуру, описану тут https://uk.player.fm/legal.

- I would like to acknowledge the traditional custodians of the land on which I recorded this episode, the Coodjinburra People of the Bundjalung Nation, and the land on which you're listening to it. I pay my respects to the elders, past and present, of those lands. I extend that respect to all Aboriginal and Torres Strait Islander listeners. Thank you for sharing this space with me. -
Welcome to episode 100 of the Straight Up Small Business Podcast! This has been an incredible journey, and I'm so grateful to all of you for your support and listenership.

Today I want to give you a guide to payment plans with the Australian Taxation Office (ATO). Payment plans can be a lifesaver for sole traders or business owners struggling with cashflow, so I think it’s crucial to have a good understanding of what they are, how they work, and how to set one up. I’ll also discuss the rules you’ll need to follow, and share some tips for getting out of a cycle of debt.

What is a Payment Plan?:
A payment plan allows you to break down your tax debt owed to the ATO into manageable installments. These installments can be spread weekly, fortnightly, or monthly until the balance is cleared. Payment plans can be set up for business activity statement (BAS) debt, installment activity statement, or income tax debt.

Setting Up a Payment Plan:
Individuals, sole traders, and/or businesses, can typically apply for a payment plan with the ATO online. This is done where you usually handle your taxes. So for individuals and sole traders that’s through myGov, and for companies, it’s online services for business.

Sometimes you might not be able to set up a payment plan online. This might be because the debt exceeds $200,000, or you have overdue debts, or you have previously defaulted on a payment plan. In this case, you can still set up a payment plan, but you will need to contact the ATO by phone.

Once a payment plan is in place, there are a few important rules to follow:
Firstly, you can only have one payment plan per lodgement type at a time. In other words, you can have one payment plan for income tax debt and another for activity statement debt, but not two payment plans for different activity statement quarters simultaneously.

Secondly, installments must be made by the due date, and all future tax lodgments or payments must be made on time. If you are struggling to meet due dates it is crucial to communicate with the ATO and explore alternative arrangements, before your debt becomes overdue.

Mindfulness and Planning Ahead:
While payment plans can provide temporary relief in times of cash flow strain, it is essential to avoid relying on them for an extended period. The goal should be to free yourself and your business from payment plans as soon as possible. To achieve this, it is important to understand your tax savings needs and maintain a tax savings account.

Navigating tax debt can be scary, but it shouldn’t be. This episode shares everything you need to know about payment plans with the ATO which can help you overcome cash flow strain, and work towards financial freedom. I want you to be empowered to make informed decisions that improve your financial situation and build a thriving business!

Where to Find Bec:

  continue reading

105 епізодів

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