BAS Lodgment Tips.

Our Highview Accountants and Bookkeepers have been trained in BAS compliance. As a business owner the registered BAS agent knows how to capture all your expenses. They know what expenses include GST and, in many cases, capture much more GST than a business owner with little BAS experience. Many small business owners often do not use the correct codes which may result in an overpayment to the ATO. Our team can ensure that your lodgment details are compliant and that you are able to maximise your deductions.

Professional BAS / Accountants and Bookkeepers can get you a lodgment and payment extension.

If you lodge your BAS yourself, you will need to lodge and pay by the 28th of April for the March Quarter. However, if a registered BAS agent lodges your BAS, you can lodge and usually pay 4 weeks after this. Effectively, you have almost two months to gather your data, lodge and pay, which is more money in your bank account, earning interest, than in the ATO’s!

Tips for lodging BAS

Keeping good records helps you stay on top of your business. When completing your next business activity statement (BAS), remember:

  • Keep accurate and complete records of all sales, fees, expenses, wages and other business costs.
  • Only lodge one BAS for each period. If your form has been replaced, you should use the replacement form and not the original.
  • Only complete fields that apply to you. If you have nothing to report, enter zero.
  • Make sure that you have entered the figures for your obligations at the correct label.

Remember, if you’ve made a mistake, you can revise or fix the mistake on your next BAS.

BAS and GST record keeping tips

  • Keep records of all sales, fees, expenses, wages and other business costs.
  • Keep appropriate records, such as stocktake records and logbooks to substantiate motor vehicle claims.
  • Reconcile sales with bank statements.
  • Use the correct GST accounting method. An accountant can advise you as to which method is best for your business.
  • Retain all your tax invoices and other GST records for five years.
  • Use an accounting software program like Xero or MYOB.

GST credits – How to claim

Only claim GST credits on the business portion of purchases, and don’t claim GST on private expenses, such as food or entertainment. If an item is for business and personal use, only claim the business portion.

Use the discounted price when claiming GST credits for discounted purchases, even if the discount doesn’t appear on the invoice. Claim GST credits up front for purchases under hire purchase agreements (entered into on or after 1 July 2012) – if you account for GST on a cash basis. Claim GST credits on the Australian dollar value when claiming invoices in a foreign currency.

If your business changes or ceases you may need to repay some GST credits for business assets you decide to keep.

When you can claim a GST credit

This may be obvious, but there are some rules you must observe…

  • You must be registered for GST to claim GST credits.
  • You can claim a credit for any GST included in the price you pay for things you use in your business. This is called an input tax credit, or a GST credit.
  • You claim GST credits in your business activity statement.

You can claim GST credits if the following conditions apply:

  • You intend to use your purchase solely or partly for your business, and the purchase does not relate to making input-taxed supplies.
  • The purchase price included GST.
  • You provide or are liable to provide payment for the item you purchased.
  • You have a tax invoice from your supplier (for purchases more than A$82.50)
  • A four-year time limit applies for claiming GST credits.

When claiming GST credits, make sure your suppliers are registered for GST. You can check the GST registration status of an entity by searching the ABN Lookup site.

If you need assistance with your BAS lodgment, please call our office and we can assist you – again as stated earlier – in many cases, your Highview specialist can capture much more GST than a business owner with little BAS experience. We’re here to help, so get in touch.

Source: Australian Taxation Office https://www.ato.gov.au/business/business-activity-statements-(bas)/

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