Home – New Forums Starting your journey ABN for freelance writing/editing work?

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  • #965713
    meridien.cathar
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    Hi everyone,

    I’d like to start doing freelance writing/editing work in addition to my current full-time employment. One freelance opportunity I found required applicants to have an ABN. I checked the ATO site for ABNs for individual sole traders and saw the requirement that I should ‘be carrying on an enterprise’, and if the enterprise is in the form of a business, I ‘must have undertaken sufficient activities… or commenced trading as an enterprise.’.

    I don’t think I meet either requirement in terms of enterprise in the form of a business, as I just recently decided to pursue freelance work to augment my income. Can my intention to start providing a service still make me eligible as carrying on an enterprise NOT in the form of a business? Can I still apply for an ABN as a provider of service?

    Thanks in advance for your advice!

    #1013610
    Past-Member
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    To do any freelance work you require an ABN (Australian Business Number) or the business/company you do the work for has to subtract 48% of your fee as tax and submit it to the ATO. As most businesses don’t like the extra work in doing this they prefer a provider to have an ABN and to organise their own tax. See more at http://www.ato.gov.au

    #1013611
    FletcherTax
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    As per Karen’s post, I would also advise to get an ABN – ensures you get your full invoiced amount.

    Make sure you find out what your entitlements are as a journalist/freelance writer too from a deductions point of view.

    Best of luck in your venture,

    Fletcher Tax Accountants
    http://www.fletchertaxaccountants.com.au

    #1013612
    meridien.cathar
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    Hi Karen and FletcherTax,

    Many thanks for your advice. Much appreciated.

    Cheers,
    Meridien

    #1013613
    King
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    ummm, now what about if it is being done as a hobby initially?

    Just to throw a spanner in the thought train ;)

    #1013614
    LeelaCosgrove
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    I would register an ABN anyway. It doesn’t hurt to have one. The upward limit for declaring a ‘hobby’ business on your personal tax return is about $3,000 I think – and June 2010 is still quite a bit away, so worth registering just to be on the safe side (plus, that $3,000 is fully taxable as personal INCOME and doesn’t allow you to then declare business expenses on your tax return).

    Note: I iz so NOT an accountant … get accounting advice!

    #1013615
    Freedomskyz
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    I applied in 2006 for an ABN as a freelance writer. There was no problem in getting one even though I hadn’t carried on buisness at the time. My understanding is that you must have an ABN to start any business.
    And having an ABN has the advantage that you can claim business expenses in your tax.

    #1013616
    zhenjie
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    Definitely get an ABN. As someone who outsources alot of my jobs to freelancers I always choose those that have an ABN. Much more efficient for both parties when it comes to paying invoices and accounts.

    A freelancer with an ABN will tend be perceived as more ‘professional’ then one that doesn’t have an ABN.

    #1013617
    copywriter
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    tee_man, post: 15812 wrote:
    Definitely get an ABN. As someone who outsources alot of my jobs to freelancers I always choose those that have an ABN. Much more efficient for both parties when it comes to paying invoices and accounts.

    A freelancer with an ABN will tend be perceived as more ‘professional’ then one that doesn’t have an ABN.

    Well said.
    In addition to that, many businesses register for GST for that very reason. Not because that are required to, in terms of turn-over, but so they issue “tax-invoices” and look bigger/more professional than they are.

    I’m not saying register for GST, but thinking big can’t hurt.

    #1013618
    work4me
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    I would definitely support getting an ABN. It’s free, quick and easy. I phoned the ATO a few years ago to find out about what is a “hobby” and they were very sparse with advice. My personal view is that they would rather not accept something as a hobby than the other way around.

    #1013619
    Burgo
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    For what its worth the moment you earn a $1.00 or more from your hobby or business you have created a business, therefore to save any argument with the taxation department of this fair country get yourself an ABN.
    Do it on line as it takes about five minutes and its your fingerprint for the taxation department, dont get confused with GST registration because you wont need to do that untill next week when you earn over $ 75,000.00 annually.

    In short dont muck around get an ABN.

    #1013620
    1.61803398875
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    meridien.cathar, post: 14694 wrote:
    Hi everyone,

    I’d like to start doing freelance writing/editing work in addition to my current full-time employment.

    Furthermore, if someone who is freelancing and IS registered for an ABN, but not registered for GST, so we just subtract the amount that would have been charged if GST applied? E.g. if a publisher has said they would pay $200 inc GST for each submission of freelance writing work that you are submitting on a regular basis, and you’re not registered for GST, do you just send them an “Invoice” (not “Tax Invoice”) for $181.82 with a note at the bottom of the invoice saying “no GST has been applied”?

    Apologies if this is considered a thread hijack.. this is all so new and overwhelming so I’m coming to grips with what I need to do and don’t want to inadvertently cause my own problems in the future in regards to tax and other obligations.

    #1013621
    [Former] FS Concierge
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    Hi 1.61…

    Welcome to Flying Solo :)

    For your invoicing queries, the ATO has a handy guide here: https://www.ato.gov.au/Business/Bus/How-to-set-out-tax-invoices-and-invoices/

    With regards to the fee, personally I’d contact the publisher and ask her, or assume that $180 is what she had in mind.

    By the way, next time you pop in we’d love it if you’d tell us your name – I think it will be easier for us to remember and pronounce, and we’re all very friendly around here ;)

    Best of luck,
    Jayne

    #1013622
    1.61803398875
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    FS Concierge, post: 212035 wrote:
    For your invoicing queries, the ATO has a handy guide here: https://www.ato.gov.au/Business/Bus/How-to-set-out-tax-invoices-and-invoices/

    Hi

    Thanks for the link. That’s a big help.

    The editor definitely said the amount was $200 inc GST, I assume they expect me to be registered for GST already.. I was registered but recently cancelled it because I didn’t have activity and am going overseas for a few months so didn’t need the hassle of organising BAS etc.

    #1013623
    ThexArm
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    Wow this thread was from 2009!!!

    Sent from my iPhone using Tapatalk

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