Implications Of Late BAS Lodgements
Business Activity Statement due dates are important not to miss. The ATO are constantly increasing their efforts to ensure that businesses are lodging their BAS on time and correctly. However, sometimes it is easy to forget a due date. There are many distractions or priorities in the world of small business.
But if you have missed the due date what can you expect? Can you do anything about it?
What are the due dates?
The due dates vary slightly whether you have opted to lodge your BAS quarterly or monthly. Quarterly BAS’s must be lodged by the 28th day following their respective BAS period. This means that for BAS’s for the June 2019 period, for example, are due on the 28th of July. If you choose to lodge through a BAS Agent like BASLodge.com.au you will receive a 4-week extension to this due date.
Businesses who lodge monthly have until the 21st after each month to lodge their BAS. This means that the August BAS’s are due on the 21st of September. Those who lodge monthly cannot receive an extension.
If you wish to change your lodgement period from monthly to quarterly, you will need to contact the ATO. Your business must have a sales turnover less than 20 million and must not have been told to lodge a monthly BAS directly by the ATO.
Penalties and general interest charges
If you do lodge your BAS late then you may be penalised by the ATO. The ATO will issue penalty units depending on the infraction and how long you are overdue by. Currently the cost of a penalty unit is $210 per unit. These penalty units are applied for each 28-day period your BAS is overdue.
The number of penalty units increases depending on the size of your company. For small entities with a turnover rate less than $1 million receive one penalty unit per 28-day period, capped at a maximum of five penalty units. For medium entities (those with a turnover between $1 million and $20 million) they will receive 2 penalty units per 28-day period. Larger entities with a turnover over $20 million are issued 5 penalty units per 28-day period.
The ATO may also apply a general interest charge on all unpaid GST or other tax liabilities. You will then need to pay this interest back to the ATO.
What do you do now that you are late?
Often the ATO does not apply penalties on late lodgements if the case is an isolated one. If you have maintained a good lodgement history, then you should lodge your BAS as soon as possible and you may avoid any penalties.
If there were any unforeseen circumstances affecting your ability to lodge, like a natural disaster or serious illness, then you can apply to have the charges remitted.
However, if none of these circumstances apply to you, and you are passed the extension date BASLodge.com.au can give to you, then you should simply lodge your BAS as soon as possible. If you are unable to pay the tax you owe to the ATO then you should enter into a payment arrangement to reduce your penalties. You will still be charged interest.
How to lodge your BAS
If you want to allow yourself the maximum time to lodge your BAS and give yourself a higher chance of avoiding late fees, lodge your BAS with BASLodge.com.au. We are registered tax agents which allows us to provide you with an extra 4 weeks to lodge your BAS. With our fast process and helpful tax agents, you will be able to lodge your BAS in no time. Lodge your BAS with BASLoadge.com.au today.