Comply with ATO’s tax-related requirements by using experts insights
Whether you are an individual earning through a job or business, you are liable to pay taxes. ATO is the authority in Australia that collects taxes on behalf of the government. So, you should comply with the guides and regulatory instructions of this central authority. However, understanding tax-related processes and filing returns is complicated. Also, you need to maintain various records relating to your income and expenses. So, you need a professional like Kirpa Tax Accounting to work for your payment plan. This results in the smooth processing of tax levied on your income earned. Also, you can comply with records maintenance with ATO to have effortless tax computation and planning.
Why do you need to make a payment plan for taxes?
Irrefutably, you have to pay your taxes in full amount to ATO without any fail to avoid penalties. However, if you are experiencing any financial hardships, you can set up a payment plan. This enables you to pay the tax amount in small installments to authorities. However, you must pay the set amount weekly, fortnightly, and monthly. To work your payment plan, it is important to compute general interest charges (GIC). If you pay your tax debt on time, it can reduce the applicable interest rates. Hence, you can comply with tax regulations to avoid penalties and other consequences.
Who can setup a payment plan with ATO?
Depending on the circumstances, you may not be eligible to opt for a payment plan. However, you don’t need to feel disappointed as we are here to guide you further. One important aspect in this realm is to maintain all your records up to date with ATO. This allows the authorities to assess whether you can repay the tax debt in manageable installments or not. The payment plans are available for individuals, sole traders, and companies. So, we navigate the best plan for you and help to lodge the suitable one as per applicable interest charges. However, there are several things you should keep in check before applying for an ATO payment plan.
Know the eligibility requirements for a payment plan
Australian Taxation Office might ask you if you can manage the debt repayment. The ATO can put a request for access through a reference letter to check your financial records. If you are an individual, ATO can assess your income and expenses. In the case of a business, you have to provide details about your profit and loss through income statements. Also, for businesses, the eligibility criteria will include evaluation of:
- Cashflow
- Debt arrangements
- Availability of funding
- Assets and liabilities
- Gross profit margins
The final words
There are several things to consider when it comes to setting up tax payment plans. So, Kirpa Tax Accounting can help you comply with taxes and assist in choosing the best plan. We also help you to maintain all your records up to date with ATO for easy debt repayment assessments. So, reach us now and discuss your needs for the best tax advice.