Tax seasons can get hectic with a busy workflow and several tasks piling up, often leaving important things like filing taxes to the last minute
Don’t panic if you have missed the deadline here are some things that you could do.
Although there can be some effects, there is a way that will allow you to prevent such negative outcomes and stabilise your business.
In this post, we will explain what happens when you fail to file your business taxes on time, and the subsequent steps to take.
“I have failed to file my taxes on time, what should I do?”
Just a quick reminder, the due date for submission of your FY23-24 tax return to the ATO is now over. If you’re reading this now, make sure your return was postmarked by 31 October – the due date – so you can relax until next year.
But what if you missed the deadline?
There are two scenarios to consider:
1. Ideally, you were Registered with a Tax Agent by 31 October
If you are self-employed, living in Australia, and missed the tax deadline, hire an expert tax agent.
If you hired a tax agent like Above Advisory to help you prepare and file your taxes, then I think you don’t need to bother yourself with the 31 October deadline at all.
As long as you file all of your prior year’s tax returns, you are likely in special programs that various tax services, including Above Advisory, have with the ATO.
It also enables tax agents to file tax returns beyond the 31 October deadline. Indeed, if you engage with a tax agent, you may have up to 15 May in the following year to deliver the return (depending on the type of client, there are different due dates now it is advantageous to check with the tax agent as to when their date falls due).
As a reminder, while you are allowed an additional 14 days to file your return for your tax agent clients, the clients have to have been registered with the tax agent by 31 October.
If you were not registered you cannot access the extra times and deadlines that were provided.
You can still lodge through an agent (in fact, it would be wise to do so) but you will be referred to the next category; the next lot of lodgers!
2. You did Not Register with a Tax Agent by 31 October
If you haven’t filed your tax return before October 31, you’re now overdue. This means you could potentially face penalties for late lodgement.
This equates to $313 in respect of the initial 28 days after the lodgement date. Try to meet the 28-day deadline or there might be some further consequences and legalities in the courts of Australia.
What to Do If You Missed the Deadline?
Take action immediately to eliminate or cut down the penalties.
If you have a good compliance history with the ATO, the penalty for late lodgement can be negotiated or may be removed if there is a good reason for this action.
The sooner you lodge after the deadline, the less you’ll need to explain ‘special reasons’.
If you have filed your return after the deadline and wish to avoid (or at least reduce) any possible penalties you should gather all your tax return data together and go to Above Advisory.
Our consultants will be in a position to do your return with minimal pressure on yourself and guide you on penalties.
Why Filing on Time Matters
- Paying your business taxes is not just about not being penalised but also about your company’s image when it comes to its taxes.
- A late filing will affect your credit standing with lenders, thus receiving adverse effects when endeavouring to seek funding or investment for business expansion.
- It can also lower your business tax credits or deductions depending on the type of business you own.
The Final Words: Act Now! Don’t be Late
Regardless of whether you have registered with a tax agent or, in fact, failed to file, the key point to note is that it is now time to do something.
You should consult a tax agent from Above Advisory to find your way through the defaulted tax filing and clear the next penalty.
Taking action early will reduce stress, save money, and maintain a good relationship with the ATO.
Pro Tip: To avoid such problems in the future, maintain a calendar of the deadlines to meet in relation to taxation and pay attention to taxes for the entire year.
Note, that it is never too early to set reminders or better work with a good tax agent to be on track all the time.
