Taxable Payment Annual Reports need to be lodged with the ATO by today.
What is a TPAR?
It confirms payments made to subcontractors (a bit like group certificates for your staff).
This is one of those rare lodgements that don’t cost you any money! (assuming you lodge on time, otherwise expect a fine).
What is involved?
– You need to identify if your business is captured by the system – building and construction / cleaning / courier and road freight / information technology (IT) / security, investigation or surveillance. Construction is very broad, it includes engineering services, architecture, communications construction, decorating, landscaping, retaining walls, swimming pool construction/installation, waterproofing, wallpapering and more.
– Confirm you have the details of each subbie: name, address, ABN, total payment (inc GST), GST amount, tax withheld, tax withheld for no ABN quoted.
– Submit to ATO online, if you didn’t pay any subbies you still need to lodge a return or Non Lodgement Advice (which is a lodgement, but we’ll let the bad english slide) to avoid fines.
Traps for young players:
– A subbie registered for GST part way through the year, but you didn’t notice and have not claimed GST on their bills.
– Include material supplies. You only need to report labour, you should include supply & install work if the materials are not listed separately.
– Report on invoices received – only report payments made (cash basis)
– Not check for errors – make sure credits or refunds have reduced the total payments. Confirm total subcontractor payments match the TPAR report.
Didn’t know TPARs were a thing? Ask us to help.
More info can be found here:
https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/reports-and-returns/taxable-payments-annual-report
