While tax time can often come with it a chance to claim back some of those hard-earned dollars from the Government, for others it can come in the form of a hefty bill. There are a variety of different reasons that can lead to tax debt, from going through redundancy, illness or other issues. Business owners are commonly known to struggle at this time of the year.
The tax bill can in fact be crippling and prevent business operations from running as normal, with all the cash flow being redirected to pay the tax. It doesn’t have to be this way. If your business needs a little extra help at tax time, consider these methods on how to get tax debt relief.
How To Get Tax Debt Relief
The first step is in recognising that you do need help. No-one wants to find themselves in a position of debt, however, ignoring the problem won’t make it go away. If a big bill does head your way at tax time, don’t push it under the rug. The best thing you can do is take a proactive approach.
Take action sooner rather than later. The longer you leave it, the harder it will be to pay it back.
Work out how much you can pay. Factor in what you can comfortably pay without causing your business to suffer as a result. Pay this off straight away to make a dent in your debt.
Contact the ATO directly. They have a team of staff dedicated to helping people and businesses in financial hardship and they can offer solutions to help you deal with your tax debt. The ATO may be able to arrange longer-term payment options, stop charging you interest or waive fines to get you back on track. If you don’t pay your tax on time then the ATO automatically adds a general interest charge to the amount you owe, which keeps increasing over time. This is something you want to address as soon as possible. This should be your first point of call when it comes to working out how to get tax debt relief.
If you can’t come to an agreement with the ATO, then your next step is to seek a review with the Taxation Ombudsman. This is a free and independent service that helps you work out a repayment arrangement.
Of course, while all these options can help you make a start on your tax debt and work out how to pay it off, none of them go as far as actually helping you pay it off. Sometimes when your tax debt is too high, your business needs another solution to see it through.
How To Get Tax Debt Relief With A Tax Debt Loan
If your business is unable to pay their tax debt at tax time, then it could leave you personally liable. When it comes to knowing exactly how to get tax debt relief, a tax debt loan could be the perfect answer for your situation.
They usually come in the form of a business loan and can be very simple to take out:
- Most lenders will let you apply online, with easy-to-use forms.
- A loan specialist will normally call you after this to discuss your specific circumstances and to better understand what you are after.
- If approved, the funds can be received within a few days.
This can take away the stress of trying to pay off a tax debt. You won’t have to worry about the ATO breathing down your neck to follow up the money. Instead, you can create a loan on your own terms to your agreed-upon repayment schedule, and pay it off in due course. As a small business, this is the perfect solution that allows you to keep running in the meantime and pay it off little by little as the cash flow comes in.
This type of loan can make all the difference between a business sinking or swimming. If you find yourself overwhelmed with a huge debt at tax time, don’t let it hold you back. Instead, follow the steps above to get the debt under control and consider taking out a loan to help.
Getting A Loan For Your Business
If you are looking for some extra help when it comes to how to get tax debt relief, talk to the experts at ALC Commercial. Our tax relief options are tailored to your situation, so you can find a tax debt loan that will help you out financially.
We have a wide network of private lenders with versatile financial options that can be accessed quickly. Get your business out of debt and back on track in no time.