ATO PAYMENT PLANS

Do you get to the end of the quarter, and then realise you haven't put enough money aside to pay your tax obligations?  You are not the only one.  In this financial climate, it seems to be a never ending battle to have enough money to go around.

The ATO are always happy to help out.  You still need to lodge your activity statements and tax returns on time, even if you can't pay by the due date. You'll avoid a penalty for failing to lodge on time and show the ATO that you're aware of your obligations and doing your best to meet them.

If you're trying to do the right thing, the ATO will try to understand your situation and will help you where possible.

In some cases, they will need to know more about your financial situation and your circumstances so they can work with you to set up a payment plan that is manageable.

If you default on a payment plan, they may impose stricter requirements before agreeing to a new plan. For example, they may ask for a higher upfront payment or ask that payments are made by direct debit, or both.

If you need to set up continual payment plans, the ATO will want to know why.  In this case we may need to look at what you are doing to minimise the need for payment plans.

If you do make continual payment plans, and if you default on the arrangement (this can be not paying your instalments, or lodging further returns before the payment plan has been paid in full), the ATO may not grant you further payment plans.  You may also lose your concessional lodgement dates, so you may need to lodge documents earlier.  The ATO may also move your obligations from Quarterly to Monthly so you can manage your obligations more easily.

Don't wait for the ATO to chase you.  Contact us if you think you may have a problem meeting your payment obligations.  We will contact the ATO on your behalf, and put an arrangement in place which is manageable for you, and meets the ATO requirements.