Personal Tax

[Goilio]

Hello guys,

I have been reading some threads and decided to post my own.

I am about to start selling services online (Virtual Private Servers) And was wondering how I would declare this on my tax?

Thanks

[MattR]

Well...if you're a Sole Trader then this goes in the Business Income section.

This gets a bit more compkcated if you make a loss.

[Goilio]

I wouldn't even be registering for a ABN because I would not have an income of $75000. Does that sound right?

[bridiej]

Not sure about that, you'd need to check the ATO website. I have an ABN and I make nowhere near that amount......

[ray_223]

Originally Posted by Goilio

I wouldn't even be registering for a ABN because I would not have an income of $75000. Does that sound right?

AFAIK you should register your business and get an ABN.
That does not mean you need to register for GST.
I would suggest you see an accountant - if you go through your local Business Enterprise Centre they will be able to (help) as well as put you in contact with an accountant with a free first appointment.

Good luck

[MarkSpooner]

Hi Goilio

Make sure you register a ABN, anyone paying you if you have no ABN will be obliged to withhold tax from their payment to you if you havent a ABN.

Having a ABN merely registers your business name to you. Suggest you check out www.business.gov.au and do a search on ABN to read further and apply for the appropriate ABN for each state you operate in

Best of luck

[mark_xpnsit]

Originally Posted by Goilio

I wouldn't even be registering for a ABN because I would not have an income of $75000. Does that sound right?

As already mentioned here you will need an ABN but won't need to register for GST unless your earnings at likely to go above 75k in a 12 month period.

Its worth working out a system now for recording earnings and expenses and understanding what deductions and expenses you might be able to claim to offset any tax you might have to pay.

In general as a sole trader there are more tax advantages than as an employee - its normally about 14-16k before you start paying any tax, and remember this is based on taxable income - for a sole trader is usually net profit after all expenses and deductions have been taken in to account.

Cheers

Mark

[Adam Wozniak - wecancreate]

Hi Goilio,

As others here have mentioned, regardless of how much you will earn, you'll still need to register an ABN and, possibly, a business name.

I've written an article about this process. Feel free to read it here.

Hope that helps.