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Mysterious tax payment

Discussion in 'Business Accounting & Tax' started by Simon Hampel, 2nd Mar, 2017.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    24th Aug, 2016
    Posts:
    159
    Location:
    Sydney
    When updating the books to prepare for BAS last week, I got a bit concerned about a bank transfer for a few thousand dollars I did back in November which was simply labelled "Tax" - couldn't find any documentation anywhere to go with it.

    Eventually on a hunch, I checked the ATO business portal and found a corresponding deposit into my tax account before I did last BAS. Turns out I knew I was going to be submitting BAS late and would owe money, so I made a guess as to how much I would owe and transferred that in advance - then when I finally submitted BAS, it was already paid and no penalty.

    I had overestimated though so tax account was in credit ... which meant that when it came to pay this quarter's BAS, I actually only had to pay $4 (four dollars!!). Almost as good as finding a $50 note down the back of the couch! :D
     
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  2. Paul@PFI

    Paul@PFI Member

    Joined:
    20th May, 2017
    Posts:
    23
    Location:
    Sydney
    I just realised a client double paid $58K of tax and when I told them they didnt need to even pay this quarter they booked a holiday
     
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    24th Aug, 2016
    Posts:
    159
    Location:
    Sydney
    It's basically how the principal of "pay yourself first" works. By taking money out of your income before you "see" it, you learn to live without it and so your savings/investing funds accumulate without it feeling painful.
     
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