How to Manage your ATO Payment Plan or ATO Debt for Overdue BAS Statement Lodgements
6 Tips for Managing ATO Payment Plans for Overdue BAS Statements
If you're in a pickle with overdue BAS lodgements, don't bury your head in the sand because the problem will only get bigger (and more expensive). An ATO payment plan can help you face the music and get back on track for financial success. The ATO actually wants Australian Small Business success. They realise Small Business and Medium Business (SME) are an important source of employment and solutions for the rest of the community. By helping manage ATO payment plan debt, they are keeping you running, which helps everyone. With these tips, you'll get out of debt and start heading towards success again!
Sound interesting? Read on!
Rip off the bandaid slowly, or quickly. It's your choice
I've worked as a professional bookkeeper for over 20 years. And I've seen many different kinds of situations. And I know from experience that the best way to deal with it is…..Get it sorted out ASAP.
It's more painful avoiding ‘ripping off the bandaid' and it's definitely not pleasant if you do it SLOWLY. So be brave! Rip it off quickly and in one go! And it will be over and done with, and you'll never have to think about it again.
Worried about how you're going to afford your debt?
The ATO are pretty supportive to those who sort things out before they get investigated. And they're happy to offer repayment plans. But keep in mind they're strict on payment defaults. The ATO are willing to help small business owners who are serious and intentional about addressing their ATO payment plan debt. We can all make mistakes, and if you are genuine about fixing them, help is on the way!
6 Tips to Manage your ATO Payment Plan without Defaulting:
Here's my top 6 Tips on Managing your BAS Debt and staying ‘off the hook' with the ATO:
Make sure your first payment is paid by the First instalment due date
Schedule monthly recurring payments from Net Bank (so you don't forget)
Schedule payment a few days before the due date (so it has time to clear)
Your next BAS lodgement is not covered by the existing payment plan. So once you lodge your next BAS, you'll need to pay it in full. If you need to add a new BAS to the plan you'll need to lodge it a few days before the due date (and then call the ATO ASAP to add the new BAS to the existing Payment Plan)
If you can't pay any instalment on time let us know, and we can call to request an extension (or if we're not your BAS Agent yes, you can call them yourself on 13 72 26.
If you default more than three times it will trigger a process where the ATO will request more information on your financial situation, and your future ability to pay. Once it reaches this point it may also affect your credit rating, and in some situations the ATO may ‘garnishee' your bank account (access funds from your account without needing to ask your permission).
Hope that helps. Get in touch if you have any questions.
Director @ Off The Hook Bookkeeping
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