ATO Failure, Lodge BAS on time penalty: Small Business
Running a small business requires owners to juggle numerous balls in the air. This brings great reward but also significant responsibility. Every now and again, a ball gets overlooked and this can be a costly exercise for SME owners when that ball is BAS lodgment. The next BAS lodgement date is 28 February so it is important for this to be on the radar for all SME owners at this time. Late BAS lodgement can expose small businesses to ATO penalties, which can eat into important SME cash flow. Fortunately a small business short term loan can provide a valuable financial safety net for SME owners facing penalties for missing the BAS deadline.
How does BAS work?
Lodging a BAS statement is generally a quarterly chore for SMEs. Lodgement is usually due within 28 days of the end of the quarter. That said, if a due date falls on a weekend day or public holiday then the relevant lodgement or payment can be made on the first business day after the due date.
Another consideration for SMEs that provide fringe benefits their staff is that they will have to both:
- Lodge a quarterly BAS; AND
- Lodge an FBT return
So in a nutshell, SMEs need to be organised to lodge their BAS paperwork responsibilities, even if they cannot make payments at the time of lodgement. For small business owners needing a hand to meet their BAS payment obligations, a small business short term loan can be a helpful tool too. SME owners can choose to lodge their BAS through a tax agent or through the ATO business portal.
Small business short term loan: a brilliant BAS solution
Small business owners are invariably flat out. When day to day business is so demanding, it is easy for items like BAS obligations to be placed on the back-burner. Unfortunately, SME owners can end up literally paying for this oversight if they incur failure to lodge (FTL) on time penalties. Here is where a small business short term loan can enable to SMEs to satisfy penalty payments without cutting into vital business capital.
FTL penalty for a small entity is calculated at the rate of one penalty unit for each 28 day period (or part thereof) that the BAS statement is overdue. The maximum penalty is five penalty units. For medium entities, the penalty is multiplied by two. Such penalties can have a significant impact of SME cash flow, so prevention is always better than attempting to redress late lodgement through penalty payment. However, for SMEs who do face ATO penalties for missing the BAS deadline, a small business short term loan can help.
A Capify unsecured small business loan offers quick approvals, minimum paperwork and easy fixed daily repayments. That means SME owners can have the cash they need to clear late BAS lodgement penalties immediately so as not to have these lurk, causing ongoing stress and cash flow shortfalls. In the meantime, business cash flow remains in-tact and able to be invested into growth endeavours.
If you find yourself facing an ATO penalty for late BAS lodgement, help is at hand. Speak to Capify about a small business short term loan today.
Or call 1300 760 930 to speak with one of our friendly Lending Consultants now.