Due to the ongoing impacts of the Coronavirus, more and more small businesses are securing payment plans with the Australian Tax Office (ATO) to regain control of their tax debt. A tax payment plan can prevent even large tax debts from becoming crippling by allowing businesses to retain the cash flow critical for sustaining operations.
At Tax Negotiators, we can secure a payment plan you can afford and, in some circumstances, can also negotiate reduced fees and interest. For small business owners this can equate to a significant reduction in cost over the life of the payment plan. Therefore, it is essential to employ a professional, experienced and registered tax agent to ensure the best result for your business.
STRUGGLING WITH TAX DEBT? CONTACT TAX NEGOTIATORS TODAY!
With a combined experience of over 50 years, our friendly team at Tax Negotiators are the experts in helping our customers regain control of their tax debt. We pride ourselves in our comprehensive services and our ability to help over 80% of our customers save their home and retain their business.
Pay Tax Back in Instalments with an ATO Payment Plan
The ATO offers payment plans to businesses struggling to meet their tax obligations. A payment plan is an agreement with the Tax Office to pay tax liability in instalments over a set period of time. The agreed sum of money may be paid in weekly, fortnightly or monthly instalments until the debt is paid.
THE BENEFITS OF PAYMENT PLANS
Payment plans allow businesses to retain good cash flow and protect personal property while clearing tax debt. By making payments in agreed instalments, as opposed to a lump-sum payment, businesses can continue to meet other expenses that are vital to maintain operations.
In addition, payment plans offer a solution that doesn’t require personal property, such as cars or houses, to be offered as security. Unlike personal loans or debt consolidation loans, this gives business owners a limited liability solution, protecting personal property and funds.
How To Set Up A Payment Plan
Eligible businesses may be able to set up their payment plan using the ATO’s online services. Alternatively, payment plans can be organised by phoning the ATO or by a tax agent on your behalf.
INDIVIDUALS AND SOLE TRADERS
For individuals and sole traders with a tax debt of less than $100,000, applying for a payment plan can be done through an active myGov account that is linked to the ATO. It is recommended that you use the ATO’s payment plan estimator before applying to help calculate the payments you can afford. If the payment plans offered online are not viable, or you owe more than $100,000 you can phone the tax office’s lodge and pay enquiry line during operating hours.
For businesses owing less than $100,000, a payment plan may also be set up using the ATO’s online services or through their automated phone service for business. Similarly, registered tax agents can also request payment plans on behalf of businesses.
Interest Free Payment Plans
For businesses that meet the ATO’s eligibility criteria, it may be possible to secure an interest free payment plan. This criteria includes that the business:
- has an annual turnover that does not exceed $2 million
- has debt from activity statements of up to $50,000 that has not been overdue for more than 12 months
- has a good history of fulfilling their tax obligations
- cannot obtain a loan/finance
- can substantiate ongoing viability
To be approved, the debt must be settled within 12 months. Additionally, the payments must be made via direct debit.
WE CAN HELP!
Tax negotiators are experts in assisting our customers secure interest-free payment plans. Our friendly team can analyse your financial situation and formulate tailored strategies to help you meet the required instalment payments. In addition to this, if you activity statement debt is slightly above the ATO’s limit, we will still work to get your business approved for an interest free payment plan.
Managing Your Payment Plan
Direct debit is the easiest way to pay your payment plan instalments. Direct debit transactions can be set up at the same time as your payment plan. Only the authorised debit card or bank account owner can set up the direct debt payments from the linked account. Alternatively, instalments can be made individually by any of the ATO’s other accepted payment transaction methods.
ATO Repayment Rules
If you fail to pay a scheduled instalment on your plan or an outstanding amount for another tax liability, you may receive a letter from the ATO before your plan defaults. In this instance, it will advise that your account is in arrears and the steps you must take to avoid a default.
It is vital to adhere to your agreed payments to avoid accruing further debt, causing your plan to vary or being denied payment plan requests in the future.
WE CAN HELP
At Tax Negotiators, we can help your businesses secure the best possible deal on your payment plan. We understand the complexities of the ATO system as well as the available exemptions and concessions to reduce the cost to your business and alleviate your stress.
Payment plans can reduce stress and offer financial security and peace-of-mind. To get on top of your tax debt with an ATO payment plan, contact us or seek professional advice through our website or by phoning 1300 277 148.
Get Help to Regain Control of Your Small Business
At Tax Negotiators, we understand the complexities of tax law and the requirements set out by the ATO for small businesses. We pride ourselves on delivering a comprehensive service to our customers by helping them to understand all of their tax obligations and ensuring those obligations are fulfilled correctly. In addition, we are experienced in aiding businesses with overdue tax debt, fees, interest and other charges.
We can assess your financials and offer a tailored solution to get on top of your tax debt. In addition, we will help you navigate future tax returns and activity statements by formulating a tax payment schedule and strategies to avoid future defaults or late payments.
Our team’s compassionate nature and professional services are what sets us apart. We understand the immense pressure that small businesses in Australia face, and that behind each business is a family. We are fully committed to helping our customers regain control of their financial position so they may grow, thrive and protect their personal assets.
Call Tax Negotiators Today
Left unattended, small tax debts and fees can quickly grow into unmanageable amounts. Taking action as soon as possible offers the best chance of recovery for businesses and critically, can avoid more serious debt recovery action.
Paying back your debt in set instalments is a manageable way to settle your outstanding tax account. With a professional financial analysis, our team will devise a payment plan you can afford. This will ensure the survival of your business by saving money, maintaining much-needed cash flow and avoiding other finance options, such as a personal loan, that often requires personal assets as security.
The experienced team at Tax Negotiators can help you get back on track with you tax obligations and ensure the survival of you business. We are passionate about helping our customers grow and thrive, and achieve this by offering tailored plans to manage their future tax liabilities. We are backed by the many positive testimonials from our customers and an unblemished record of service.
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