Debts with the ATO can be daunting and something that many of us prefer not to think about. We also know that no matter how hard we try to avoid thinking about these debts they never go away.
Believe it or not, the ATO are extremely supportive of small to medium sized businesses. They are such a crucial part of our community that assisting them is a priority. If the debt has come about due to a genuine mistake or through cash flow difficulties or the like, the ATO can assist by setting up Payment Plans in order to help reduce and eliminate the debt.
When entering a payment plan, the first requirement is that all returns and activity statements are lodged up to the current date. The payment plan will cover the outstanding amount payable at the time the plan was initiated. The repayment amount is suggested by you, the business owner, and should be a reasonable amount which fits within your business’s budget at the time.
Going forward, you should note, the payment plan will not cover any future activity statements or returns. The new statements or returns will be expected to be paid on or before the due date.
Whilst the unfavourable cost of business, taxes, will never go away – it is reassuring to know that when we become a little stuck for cash flow, there are options to carry us through. It is crucial to stay on top of our lodgements though – always keep your activity statements and tax returns lodged, up to date!