Change from quarterly to annually payments

Hi,

I sold my business almost 2 years ago and have since been continuing to pay tax quarterly. I would like to go back to paying at the end of the year like most others. How do I go about it and is there a criteria for me being allowed to do so? Thanks in advance.

 

BlueEyes

This issue should resolve itself when you lodge your next income tax return - assuming you have gone back to receiving a wage (either from your own business or someone else's).

You may be eligible to pay using the annual instalment option if at the end of your first instalment quarter in the income year you meet the following criteria:

* your most recent notional tax# as advised by the ATO is less than $8,000
* if you are registered for the goods and services tax (GST) and you report and pay GST annually
* if you are a partner in a partnership registered for the GST and the partnership reports and pays GST annually.
* in the case of a company, you are not part of an instalment group, a participant in a GST joint venture, or a head company of a consolidated group.

You can change from quarterly to annual before the September 2010 quarter instalment is due to lodgement and payment. When (or if) you get the instalment notice give the ATO a call and they will change it.

You can also do a variation for any quarterly ones too (such as the June 2010 QTR one you would have just received) to make it so you pay $0.

Hope this helps.

Cheers
SM