No one likes paying tax, but even worse is after you’ve paid your taxes and you are still on the hook for an additional bill! So why did you receive a tax bill? There are a number of reasons actually. Here, we discuss the circumstances in which you may be obligated to pay a tax bill, and what you can do to avoid them in the future.
Why do I have to pay a tax bill?
There are several reasons why you may need to pay tax after lodging your return – and when the bill is unexpected, it can really sting!
- Individuals may be liable for a tax bill if your employer didn’t withhold enough tax in your regular pay over the course of the financial year.
- Sole traders may need to pay a bill if you haven’t paid enough tax to the ATO throughout the financial year. As a business owner, it’s important you acquaint yourself with how to report and pay tax.
- If you have a second job or a side business where no tax is withheld, you will need to pay the required tax amount after lodgement.
Business owners and sole traders can prevent a tax bill in future by going through pay as you go (PAYG) withholding to help meet your yearly obligations.
What do I need to pay attention to on the tax bill?
The first thing you’ll want to do is determine how much you owe. You can do this in different ways depending on whether you are an individual employee, sole trader, business owner or registered agent – the ATO will walk you through the necessary steps.
After lodging your tax return, you will receive a notice of assessment that will include the amount you have to pay, the due date for payment, and a unique payment reference number (PRN).
When it comes time to pay, you can do it online via BPAY, with your credit or debit card, with the Government EasyPay service, or over the phone. If the bill is large and you won’t be able to pay it off in full by the due date, make sure you contact the ATO and request a payment plan.
A Burnie tax agent can do the hard work for you
Receiving a tax bill – especially an unexpected one – can be both stressful and frustrating. So how can you avoid the same thing happening next financial year? Find yourself a local Burnie tax agent who understands your employment circumstances and can help you get the best tax return possible.
At Gillet & Associates we work with sole traders and small business owners across all industries, and avoiding tax bills is one of the most common reasons why people come to us. So if you’re ready to stop wasting time – and money – doing your own taxes every financial year, let the experts take care of them for you.
Choose the best Burnie tax agent for all your tax needs
Gillet & Associates is a Burnie tax agent servicing Tasmanian businesses. Why do our clients love our services? Because we are small business taxation specialists who use our experience and expertise to maximise your tax efficiency. Whether you need your tax returns managed, BAS organised, payroll streamlined or regular bookkeeping support, we can do it all so you can focus on your business.
For expert tax advice, contact Gillet & Associates today or call us on (03) 6431 8151.