Your tax obligations as a business owner are dependent on various factors such as the business structure, income and business activities. Learn everything you need to know about small business tax in this guide.
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.
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Aside from home-office expenses, what else can you claim in your tax return as an IT professional?
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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 complete your tax return, there are various deductions and expenses you may be entitled to claim which can reduce the overall amount of tax you need to pay. Most tax deductions are...