Home – New Forums Starting your journey Tax for Sole Trader Side Business Reply To: Tax for Sole Trader Side Business

#1202754
Divert To Mobile
Member
  • Total posts: 2,751
Up
0
::

Hi Josie,

The tax paid out of your work income is taking into account the tax free threshold and lower tax brackets you pass through.
To figure out exactly how much to put aside each week you will need to combine the incomes, factor in the withholding tax your employer has deducted on your behalf and calculate the remaining tax payable.

Sound complicated? it is.
IMO (and depending on how well your sole trading business goes) just put away about 30% each week ready for the end of year calculations. If you don’t blow out to the next tax bracket you should have more than enough to cover the extra tax liability.

best of luck,
Steve