If you are unable to pay your ATO obligations on time, there is a possibility of setting up a payment plan to pay off your liability in instalments. Payment plans can be arranged for BAS, Tax Return and Superannuation liabilities. There are a few things to consider when setting up these arrangements and whist you are paying off your instalments:
You should always lodge your ATO obligations on time, even if you are unable to pay in full by the due date.
You need to be up-to-date with all lodgements before a payment plan can be set-up.
In general, a 10% deposit is required and then weekly or monthly instalments over up to a 2year period.
Late lodgement and/or payment on subsequent obligations will result in a default of your payment plan.
Interest may apply (this depends on your debt amount, the period of arrangement, your annual turnover and past history with other payment plans)
Payment plans are considered by the ATO as a helping hand for cashflow management. It is expected the subsequent lodgements will be paid on time. So it is recommended to make the arrangement with this in mind, keep your repayments to a manageable amount. At iKeep, we recommend putting funds aside in a savings account each week, to cover your future PAYG, GST Credits and Super. This way when your lodgements are due for payment, the funds should be available to you.
As a registered BAS Agent, iKeep has the ability to liaise with the ATO on behalf of our clients. So if you are having trouble paying your BAS in full, don't hesitate to reach out and speak with us to help you find a solution.
If you need more information or would like us to arrange a plan on your behalf, please contact your accountant.