Can you be a sole trader and be employed at the same time? What are the tax implications for an employee starting a business part-time whilst still being employed full-time, and do all sole traders...
One of the first things you should check is to ensure your employment contract does not place any restrictions on you carrying out your part-time business. A lot of part time businesses start by doing something that is related to their main field of work, so it is important to know what you are permitted to do and not permitted to do. Failing to understand this can land you in hotwater with your current employer as well as legal implications for your new business venture.
I am new to tax savings. Can anyone guide me on how to save tax as an individual and small business owner?
The simplest way to reduce your tax bill is to sell less, or just drop your prices.
Personally I love it when my tax bill climbs. The best one you want to see take off is your BAS. As a business owner, my advice is to focus on paying as much GST as possible by selling more or at a higher profit.
That then means this becomes your accountant's problem.
My one warning - many tips on how to reduce tax don't actually help you as a business owner.
Aside from home-office expenses, what else can you claim in your tax return as an IT professional?
IT professionals can claim a range of tax deductions for work-related expenses. Below is a summary of the most common:
I am a full-time employee and want to start a small business on the side. If I go ahead and register a small business as a sole trader with an ABN, I understand that I need to update my details and...
Because the income of a side business is taxed at marginal rates there is value in considering a little tax planning.
If your spouse is not working then maybe you should consider either operating the business activity in their name or perhaps using a trust for the business so that the profits can be diverted away from the person with the highest income.
Hi all, I was just wondering about the treatment about some home expenses. I know that if you work from home you can deduct expenses (gas, electricity, utilities) depending on the use or percentage...
I think @Apurv Bhalla CPA has listed some great answers.
My perspective may not be as applicable as here in the United States things are a bit different (and to some degree can even vary state to state).
One of the biggest differences here between personal and company is your liability protection. If you are just a sole trader (sole proprietor) then your assets (finances, home, investments, etc.) can be subject to penalty whereas if you are a specific corporate entity (C Corp, S Corp, LLC, LLP, etc.) than your personal assets have more protection as long as you aren't comingling your personal and business finances (separate bank accounts).
You can still write off a home office, but similarly, it has to be separate (have a door to separate it from the rest of the house/apartment). Assets can be wholly written off or depreciated over multiple years, typically the method chosen depends on what will be (or is forecasted) to be more favorable from a tax perspective.
Utilities can be a bit tricky to calculate. You can use percentages, but it would likely be hard to prove that they were correct if audited.
Here you can also write off mileage (from a sole trader perspective).
You might be able to write off other items such as a cellular plan if that phone and its usage were strictly for business purposes.
The best advice I can give is to talk to a knowledgeable tax professional. They will be able to give you better guidance on what to avoid and potential write-offs you may have overlooked on your own.
When you think TAX couldn't get any more complex - and then the ATO does this... What do you think about the new withholding property tax?
Great question - would love to hear your thoughts @Amanda Hoffmann - Certified Bookkeeper, BAS Agent @Mark Chapman !
What are the pros and cons of filing your own company tax return? Would you recommend going through an accountant instead?
Value-based pricing is a strategy being used more often by accounting and even bookkeeping firms. The price is set by their ideal client's perceived value of a product or service.
Value pricing is customer-focused pricing, meaning companies base their pricing on how much the customer believes a product is worth. They take into consideration the demand for their services/product, years of experience, reputation, size, and many other factors.
Accounting Firm A
Focuses on e-commerce clients who use Etsy, Facebook Store, and other online sales formats. They are world-class in their expertise in this area and have many valuable connections. They have a reputation to not only solve complex problems but give advice that assists their clients to automate administrative duties.
Not many firms "niche" in this area. The avatar's perception of value due to their expertise empowers them to value price their services at a higher amount than other firms who service any business.