Home – New Forums Starting your journey Confusion HELP!

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  • #990538
    Bog
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    Hey, I’ve got a very specific set of questions that I’ve been thinking of and no one seems to know.Hoping I can get some answers on here. Thanks.
    I’ve been thinking of starting a business as a sole trader from home doing musical instrument repair and tuning(By my self without employees) as strictly a service and NOT selling goods. I’m not expecting to make a fortune so I won’t be registering for GST and I cant be bothered with BAS. So my only real tax obligation is my EOFY personal tax return and I shouldn’t have PAYG or PAYG withholding for my first year? I’m also very confused about my ability to claim deductions on the parts I may require to fix an instrument( Such as a new tuning peg), because I’m not selling the goods, it is needed for me to provide a service, do I need to do a stocktake to claim them? I’ve always done my personal tax myself and would prefer to not see an accountant if possible.(due to using a paper based bookkeeping system I doubt the Accountant would like)

    #1177416
    NickKaro
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    Good afternoon

    You shouldn’t need to make PAYG instalments on your business income for the first year, and only subsequently if you pass certain thresholds, the ATO will send you an instalment letter once it is applicable.

    Depending on the cost of the equipment purchased, you may be able to deduct it immediately, or over a period of time. There are certain small business concessions which you should look into. I do not believe you will not need a stocktake for this purpose (or really any purpose if you do not have goods/trading stock).

    Regards
    Nick

    #1177417
    Bog
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    Thank you very much, so buying parts for me is the same as if an office bought pens and papers?

    #1177418
    NickKaro
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    Generally, if they are low cost and/or perishable in a short period of time, yes.

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