PAYG Instalments

[saul-james]

Hi Brandon,

I recently lodged tax returns for the past 5 years (2019 – 2023) as a non-GST sole trader and received a “zero to pay” result 3 weeks later. When looking through the tax assessments I noticed I had been automatically registered in the PAYG scheme for sole traders 3 years ago. Over those 3 years I didn’t pay a cent towards installments. There was no penalty applied and a week after receiving my tax assessments I received a further notice from the ATO stating that I was no longer required to make PAYG payments. The notice gave the impression that I was no longer registered in PAYG stating further down on how I could voluntarily re-register for PAYG.

If I was able to get away with not paying any PAYG installments over those 3 years, it is possible that you too can get away with it over the course of 12 months.

Have you lodged a return for 2023?

[Brandon-Nicholas]

I am registered for GST though witch may be a problem. I will have to look at that

[saul-james]

Perhaps you could get your tax agent to deregister your GST status as a parting gift?

Last year “my” entity received an income of $365, well below the GST threshhold.

https://www.ato.gov.au/Business/GST/If-your-business-changes-or-ceases/Cancelling-your-GST-registration/

• This reply was modified 1 year, 9 months ago by  saul-james.

ato.gov.au

Cancelling your GST registration

If selling or closing your business, you must cancel your GST registration. You may also need to cancel your GST registration if you restructure your business.

[Brandon-Nicholas]

<div>Thanks mate!</div><div>

Yeah I have alreasy lodged a return for last financial year. I got my tax agent to do it for the last time

</div>

[morag-janet-of-the-hill-family]

Here’s some things that might have some ideas you can use?

How-to-legitimately-reduce-your-personal-tax-liability-through-rules-of-equity-230901-1-1.pdf 65 KB PDF - Click to view

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How-to-stop-paying-Tax-Aus-4.pdf 44 KB PDF - Click to view

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Success-with-tax-using-SE-methods.pdf 39 KB PDF - Click to view

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[brianchu82]

Hey Brandon,

If you don’t have complicated financial arrangements such as multiple properties or businesses, consider doing your own tax returns on paper rather than getting an accountant. That way, you might be able to print out your tax return form and use your private entity to get back a larger tax refund.

Morag already provided some information in her post to explain how that works. I can attest from personal experience that people have gotten bigger tax refunds using the methods suggested.

God bless,

Brian

[shannon]

Hi Brian,

Thanks for your contribution to this forum. 🙂 Im looking to submit my 22/23 tax return myself using Marks Minimising module. But it doesnt touch on what to complete in income and expenses if my 4 x BAS for the year have been completed. I assume the Income needs to be the total of the 4 x BAS? Do you have any suggestions on what to complete in the Deductions Section please? Given that deductions have already been provided for each quarter? And also, in what section does it provide for the figure of tax already paid to be included? Thanks so much for your help. Shannon

• This reply was modified 1 year, 3 months ago by  shannon barker.

[brianchu82]

Hi Shannon,

Normally, your tax returns include the total income, expenses and deductions made for the year. It does not have to be equal to the sum of all your amounts from the BAS during the year. This is because you include various accounting adjustments during the year that may come up at the end of the financial year, which you do not have time to calculate as you submitted your BAS for the June quarter.

Usually an accountant deals with this. But if you have a simple business, then your annual tax returns figures should be quite similar to the sum of the figures submitted in your quarterly BAS.

All the best with this.

God bless,

Brian