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Re: Paying Activity Statement For Different Period

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Newbie

Views 219

Replies 2

Hi All,

I worked as a contractor with an ABN for two months in 2019. I started working as a permanent employee after that (tax already paid by the company). I just got an account statement for Jan 2020 - March 2020. If I pay that (I already did), will the ATO deduct it from my tax for those two months I worked as a contractor?

Thanks!

 

 

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

ATO Certified

Devotee

Replies 1

Hi @alex_jay_alter

Pay as you go (PAYG) instalments helps you make payments throughout the year you won't have to pay a large tax bill when you lodge your tax return.
The amount is based on your last tax return.
Your payments are made based on your business (contractor) and/or investment income (which is also known as instalment income). When you lodge your tax return, all the amounts you've paid during the year will be offset against any tax you owe for the year.
So basically the instalment amount will go against your tax liability, the ATO will refund any over payment of tax, or you may need to pay additional tax.
When you lodge the 2020 tax return it may exit you from that system.
Please see https://www.ato.gov.au/General/PAYG-instalments/
Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
2 REPLIES 2
Highlighted

Best answer

ATO Certified

Devotee

Replies 1

Hi @alex_jay_alter

Pay as you go (PAYG) instalments helps you make payments throughout the year you won't have to pay a large tax bill when you lodge your tax return.
The amount is based on your last tax return.
Your payments are made based on your business (contractor) and/or investment income (which is also known as instalment income). When you lodge your tax return, all the amounts you've paid during the year will be offset against any tax you owe for the year.
So basically the instalment amount will go against your tax liability, the ATO will refund any over payment of tax, or you may need to pay additional tax.
When you lodge the 2020 tax return it may exit you from that system.
Please see https://www.ato.gov.au/General/PAYG-instalments/
Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
Highlighted

Newbie

Replies 0

Thank you very much for the detailed answer !!!!!