01 Aug TPAR or not TPAR that is the question???
Have you heard about TPAR or Taxable Payment Annual Reports? Here we give you the low down on who these apply to, what’s involved, when they are due and where to get help. These are a mandatory reporting requirement for some businesses so read on to see if it applies to you. And worry not, as we have some ideas to help you along the way.
What are Taxable Payment Annual Reports (TPAR)?
As the name suggests these are annual reports which some businesses are required to lodge to the ATO.
Who needs to lodge a TPAR?
Not all businesses are required to lodge a TPAR each year. It is dependent on the industry you are in. Go to the ATO website to check your reporting requirements.
For those businesses primarily in the building and construction industry you MUST lodge a Taxable Payments Annual Report (TPAR) if you:
- make payments to contractors or subcontractors for building and construction services
- have an Australian business number (ABN)
As defined by the ATO “Contractors can include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts.”
So, does your business make payments to contractors? If so this article is for you.
When do TPARs need to be lodged?
A TPAR must be lodged by 28 August each year. Less than a month away so let’s get cracking.
How are TPARs lodged and what information is required?
There are several different ways to lodge a TPAR depending on your business structure and circumstances. You can lodge either via:
- business software (if yours has this functionality)
- via the ATO’s online services portal
- via a tax or BAS agent
- using the paper form available on the ATO website
As a first step check if your business software can prepare and lodge the TPAR. This is your easiest option.
You’ll need to keep good records, including the contractor’s name, address, Australian business number (ABN), amount you paid, including goods and services tax (GST)
Need more information on TPAR?
The ATO has an easy to understand video that can answer all you questions on TPARs. Visit their website https://www.ato.gov.au/Business/Reports-and-returns/Taxable-payments-annual-report/
Get help lodging a TPAR?
If you are still unsure or would like assistance, feel free to give Deb at Your Trade Bookkeeping a call on 0428 954 577 or contact us at yourtradebookkeeping.com.au
No Comments