PaulandNic

Ok, I need to obtain an accountant and they'll surely fill me in, but till then was wondering what to keep as in receipts etc? ...

I'm currently keeping receipts for tools & petrol, but am unsure what else I can claim for ...

Someone told me you can claim for clothing for your kids ...lol, but is this just 'silly talk' or is there something in this? ...

Appreciate any advice ...

Timber Floor Au

Have you got an abn yet?

If so keep every receipt, with exception to personal drinks food, and personal purchases.
If you aint got the abn yet, im not sure the receipts can be older than the abn granted date.

Ste

Carbery

Before you apply for an ABN you have to decide what kind of entity you want to operate under. Sole Trader, Partnership, Company, or Family Trust. The later is beneficial if you have kids as you can offset tax liability on them - the down side is it costs more to set up using both a Solicitor and accountant. We made the mistake of getting an ABN number too early - once you have one a BAS return has to be completed every quarter. Get a good accountant preferably one who is knowledgeable about your trade. I personally think that its a bit of an old wives tale about kids clothing etc but for sure keep every receipt.

sonlymewalter

I believe you can register an ABN and not pay Tax if you put "Invoice" rather than "Tax invoice" and state clearly on any invoice "this does not inc GST".

That way you can concentrate on your business and not have to fill in Tax forms every 3 months. Of course, once you hit $75k then you have to inc and register for Tax.

See an Accountant. Depending what you do and where you work [home office Vs going to work] means you can claim different things. Your Accountant is the best person to ask as they want you to get it right before they have to do your books at end of year.

Good luck :-)

PaulandNic

Yeah I kicked off as ABN last August, but only lasted a few months tops and then got a job 'on wages' till October, then ditched that and started back on ABN about a month ago, and plan to stick this one out ...

I am a 'Sole Trader' if that helps.

My invoice which is one the co I work for gave me, says 'tax invoice' at the top, but I earn under $75k if that helps.

Yeah will def need to see / register with an accountant, and will ask at my co if they can recommend one, or ask one of the guy's but I don't think there's many there who are ABN as most are 'on wages' with the company.

PaulandNic

Also, can anyone give me an idea of how much I should be putting away for tax?

I was told 20% ...

sonlymewalter

Why did your company provide you with an Invoice?

My understanding was you were setting up an ABN so in effect being self employed, which means you should invoice them for work completed ?

sonlymewalter

I'd put away 25% in case some of the items you are planning to claim against, are not allowed. This way you're being cautious "just in case".

Seriously Paul, go see an Accountant. Every business has it's quirkiness and so these responses are generic or based on personal experience, based on individual business requirements. Your business may be different. You need to understand how your individual business works. For instance you can buy expensive equipment and depreciate this each year i.e claim so much back off your Tax each year. Again, you need a good Accountant to advise you otherwise you may find yourself out of pocket.

Don't rely on anyone's advice including mine. Each business is different. Go see an Accountant. They usually charge a nominal fee for your first meeting as they want your continued business. It's really worth it

PaulandNic

I mean a blank invoice, for me to copy and use to invoice them!

Yeah gonna ask today about an accountant and arrange a visit, cheers for your help ...

sonlymewalter

I see. You'd be better off getting a free template off the internet and doing your own, including your business name, your ABN and contact details etc. As I mentioned, if you do decide not to charge GST then there are some legal criteria re wording that I mentioned previously above.


Great, this really is the best thing for you to do if you are serious about your business

Good luck Paul