Home – New Forums Money matters Help a couple of silly tax questions from a newbie!

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  • #969027
    Mum-of-3
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    Hi all!

    Background first ….

    Tax time is usually less horrendous for myself as a stay at home mum but this past financial year I’ve earned some money on the side turning what I use to do for nothing and now getting paid a little for it.

    At first I spent 18 months writing for an online blog/website for no payment, just the joy of using ones brain and then as the blog/website business grew she took us on as paid writers.

    I invoice the manager for my articles and she pays my invoice. I have no overheads or expenses I wish to claim for. I understand as I’m earning 100% profit and this is an ongoing contract of sorts I am operating as a ‘business’. This blog/website is the ONLY source I write for….

    I earn not much at all – around $2000 for the 09/10 year. I don’t have an accountant and in fact my closest accountant would be 200km away!

    My questions are:

    What category do I fall in for my tax return? Special Professional? Professional Artist? Personal Services?

    I haven’t registered for GST as I obviously earn no where near $70k, I do have an ABN, but do I need to fill out BAS forms?

    Any help would be much appreciated! Was MUCH easier when I was just doing this job for love!

    Thanks :)

    #1036490
    Soul Living
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    Hi and welcome,

    First of all look up the ATO site it’s not bad and it may answer your questions, or ring them with your questions, they really are there to help you and can answer your questions. If you find the person you are talking to at the ATO doesn’t answer your questions to your satisfaction, hang up and try again later you will get another person that may be able to help you better.
    Hope this helps.

    Toni

    #1036491
    mark_xpnsit
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    Hi,

    the work you have been doing sounds really interesting, is it an Australian website you have been writing for?

    In terms of your tax BAS shouldnt be necessary if non ABN or registered. As for your tax category you may fit more in to a ‘journalist’ category, however the ATO has codes and classification numbers for each of those occupations.

    Also remember you will have a number of personal deductions you can claim for, just the fact that your probably using your own computer, in an office, on the internet to post this question opens up alot of personal allowances by itself!

    Hope this helps

    Cheers

    Mark

    #1036492
    MattR
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    If your income is so low you may not need to lodge an ITR< below threshold, BUT this also depends on income from other sources. However if you need to then you may consider;
    1. sole trader with business income
    2. personal services as your income is from the one source
    3. access Entrepeneur’s Tax Offset
    4. consider the appication of the Non-commercial loss rules if applicable

    With respect to BAS, this will not be issued to you at present as you are not registered for GST and nor I assume are you registered as an employer (for PAYG Withholding).

    However, assuming you do have a taxable income (after expenses) from your business and that you are paying tax for the 2010 year, then in future years you may fall under the Instalment Activity Statement (IAS) regime. This requires you to pay an Instalment of Income Tax on untaxed income during the year. The ATO doesn’t know to levy you Pay As You Go Instalments until you lodge your 2010 Tax Return. Hence you can have a 2010 tax bill and then need to start paying 2011 PAYG Instalments as well.

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