PAYG withhold form - DIY?

[onion33]

We have bought our first two IPs this financial year. I'd now like to lodge a PAYG withholding variation for each of us.

Is it easy enough to do it yourself or is it too much hassle (get accountant)?

Thanks.

 

[Paul@PFI]

The form completion is the easy bit. The information needed to do it accurately to avoid penalties and to ensure that you don't end up with penalties + a debt worth the guidance perhaps ??

You want a conservative estimate not an accurate estimate.
You need recent payslips
Full HR contact info (ATO writes to them)
QS reports

Areas that DIY often get wrong :
- Lack of diligence in estimates (over estimate deductions, under estimate income)
- Borrowing costs incorrect (5 years is incorrect)
- Apportionment in Y1
- Interest v's loan repayments
- Forgetting bonuses
- Forgetting annual payrise in March etc
- Getting salary sacrifice wrong

 

[Richard Feynman]

Paul nailed it.

Pretty easy to do, yeah. Just make sure your numbers are accurate, and on the conservative side.

 

[Angel]

For the first year I used the figures that I acquired to calculate the holding costs before purchase, such as council rates, LL and building insurance, mngt fees and I deliberately left off depreciation. Bank interest is very easy - IO loans, no principal to worry about. Remember to income split the rent and only show each person's share of the expenses if they are in joint ownership. The form will prompt you.

If you over estimate your income and under estimate your costs, the ATO will be happy. For the following years I use the same figures the accountant puts into the actual tax return to do the Tax Variation.

 

[Rixter]

Its quite easy to do...and you can update throughout the year online if/when any of your projected financials change.