Quarterly tax statement (ie: Rental income) - Wanting to pay monthly via Credit Card

Discussion in 'Accounting & Tax' started by TopCat, 23rd Oct, 2018.

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  1. TopCat

    TopCat Well-Known Member

    Joined:
    19th Feb, 2017
    Posts:
    67
    Location:
    Melbourne
    Too hard basket for the average tax payer, but I'm just paid the current tax bill by cc tonight, paying an extra $719.29 + cc fee ($14.71).

    My question is how we have two seperate tax accounts (PAYG job / rental), can I just use our PAYG bpay details without any issues? ie: Debt collectors letter for not paying our tax (rental), when in fact we did pay our tax (extra $ in PAYG each month!)

    How to pay

    Link above suggests the quickest & easiest way to pay your tax: "Make sure you provide the correct unique payment reference number (PRN) in the reference field every time you make a payment. This guarantees your money goes to the right account without delay".

    Is there another PRN for rental tax payments? As I've tried looking everywhere on the website between each account we have, but no luck other then the PAYG account bpay reference.
     
  2. Kassy

    Kassy Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    550
    Location:
    Canberra
    You’ve probably already done this but have you logged into the ato via mygov and checked your account? If your debt shows there then just follow the prompts to pay and one of them is bpay and it will give you the details and the PRN. You can also opt to make part payments through the payment menu. (Not an expert and I don’t work at the ato but I did this last week)
     
  3. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    17,731
    Location:
    Sydney
    Taxpayers have one or two accounts. There are:
    1. Income Tax Account
    2. Integrated Client Account for BAS and PAYG Instalments.

    There is no such thing as a account for rental tax payments. If you wanted to prepay to avoid a debt you can make extra payments and the Income Tax Account would be best. The ATO generally dont refund excess payments to that account but can refund excess amounts on the ICA

    Its also likely that after annual tax lodgement that IF a tax shortfall occurs due to rental income taht the ATO may then start PAYG Instalments so that you progressively pay each quarter rather than have to set aside what you think is likely to be due.
     
  4. TopCat

    TopCat Well-Known Member

    Joined:
    19th Feb, 2017
    Posts:
    67
    Location:
    Melbourne

    I hate paying quarterly, I would rather one lump sum each year; instead of a refund it would be tax owing of $1000's. Not like I can't afford it. But the ATO think otherwise, not giving the option to pay in one instance (ie: council rates give the choice, pay each month or wait until date paying $$ in full).

    I have set it up to pay monthly by cc, eventually finding the code for the ICA account.

    I've worked the monthly cost as follows: Total rental received each month (not deducting agent fees / general costs for services required), ATO monthly tax table, then adding the cc charge on top of everything.

    Thus:

    $1,423.00 rent = $321.00 monthly tax + cc fee of 0.78% ($2.50) = $323.50 minimum.

    I've decided to choose just under $340.00 per month to pay the ATO. Which coud mean we may get a refund during each tax return!

    Does anything like this seem simple to anyone else who may wish to pay the ATO only once a year?