How to deal with ATO tax debt
Tax is one of the most important aspects of managing your small business finance. If you have been tardy in your tax obligations, you may be grappling with an existing ATO tax debt. Running and growing your small business alongside handling an ATO tax debt can be challenging. Yet you do have several options at your disposal to get your small business finance back in order and attend to your tax debt effectively. Our top two ways to deal with ATO tax debt are:
Try to negotiate a payment arrangement
Show your commitment to meeting your small business finance obligations by contacting the ATO directly. See if you are able to negotiate a payment plan with the ATO. Be sure to make the payment plan viable for you and your SME though. Do not enter into a payment arrangement that you are unlikely to be able to satisfy. Under an agreement payment plan with the ATO you must make all forthcoming BAS payments in full and on time. Should you default then the ATO can cancel your payment plan and request that you pay the full debt.
A couple of points to note about an ATO payment plan are:
- your tax debt will accumulate interest, even when you have a payment plan in place; and
- any tax refunds that you are entitled too will be applied to your debt by the ATO to reduce this down
Refinance your tax debt
A small business finance solution from Capify can help you clear your ATO tax debt easily and without impacting your business cash flow. Our flexible small business loans can place funds in your account within 48 hours. Best yet, we offer unsecured business loans so you do not have to pledge any of your business or lifestyle assets to get funding. You can get small business finance for anything from $5000 to $250,000. With our small business finance solutions, you can get on top of your tax debt without having to dip into your working capital. Speak with us today.
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