If you have a construction, cleaning, IT, freight/courier or security business you need to report payments made for service to your subcontractors to the ATO.
This is one of the submissions that won’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 – construction is very broad, it includes engineering services, architects, communications construction, landscaping, retaining walls, swimming pool installation and wallpapering.
– 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.
Traps for young players:
– Subbie registered for GST part way through the year, but you didn’t notice.
– Report material suppliers. 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.
Need a hand to get the paperwork in by 28th August? Ask us to help.
More info can be found here: https://www.ato.gov.au/Business/Reports-and-returns/Taxable-payments-annual-report/Lodge-your-TPAR/TPAR-contractor-details-to-report/
https://www.ato.gov.au/Business/Reports-and-returns/Taxable-payments-annual-report/
