If You Engage Contractors in the Construction Industry You Must Report ALL Contractor Payments Made
Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.
Do you have to complete this report?
1. A business that is primarily in the building and construction industry?
2. Paying contractors?
If you answered yes to both of the above then you are required to complete the Taxable Payments Report.
Details you need to report
For each contractor, you need to report the following details each financial year:
- ABN, if known (if you don't know the ABN you will have to withhold tax from the payment)
- The Gross amount you paid for the financial year (this is the total annual amount paid inclusive of GST)
- Total GST included in the gross amount you paid
The annual report must be lodged with the Tax Office by 28 August. Penalties may apply if the report is not lodged on time.
What you need to do now
If you cannot easily collate the information required above then you will probably need to change how you record your contractor information.
We can help so give us a call on (07) 5439 1600. We will charge you a fee for this based on exactly what is required but doing nothing is not an option or you may end up being targeted by the ATO for further compliance action and penalties. In that case you will still have to update your reporting system and the longer you leave it the greater the potential cost to you.
For more information or to have a chat about how we can help you make your business easier give us a call on (07) 5439 1600 or CLICK HERE to make an appointment with our specialist construction team.