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  • #972563
    hairstylist
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    Hi all, my partner is starting a hair dressing business from home plus mobile..We are new to the area so will have to build up the clientele which should not be an issue through the schools etc.. We have registered a business name al ready just wondering on the below?

    1. Do we need to get an ABN?

    2. Can we claim tax back on hair products brought with out an ABN number?

    3. What can a business earn a year before you have to start paying tax?

    4 . do we need to see a tax accountant or business planner to start this business or should cutting hair mobile and from home be pretty easy to work out?

    cheers.

    #1056861
    Bappymills
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    Hi and welcome to FS

    I think you only need an ABN once you have started to earn above a certain amount (approx $6,000), but it is probably best to get one sooner rather than later.

    I am sure someone will be along shortly to answer all your questions correctly.

    Good luck

    #1056862
    hairstylist
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    Cheers for that will wait for some info from here..

    My other question is that we have a 5 year old at full time school and a 2 year old….How will all this affect our family tax benifit we get every 2 weeks from the government?

    #1056863
    Anonymous
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    Hi hairstylist,

    There are quite a few accountants around here, so hopefully someone will pop in shortly with a response for you.

    In the meantime though, thanks for joining the forum, and welcome aboard! (Next time you’re posting, it would be great if you could tell us your name so we can welcome you more personally!)

    All the best,
    Jayne

    #1056864
    Anonymous
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    Hi hairstylist,

    Quote:
    build up the clientele which should not be an issue through the schools You may need a “working with children’s” permit to do this.
    Victoria
    Western Australia
    New South Wales
    Northern Territory
    Others

    Quote:
    1. Do we need to get an ABN? For the purpose of operating a business, yes. However GST is a slightly different matter.

    Quote:
    3. What can a business earn a year before you have to start paying tax? This can depend on variables based on whether your registered for GST, and should be talked to an Accountant about. However it maybe more beneficial to pay more tax and get a refund, than to risk paying less and cop a fine or an “extra owing” bill.

    Quote:
    4 . do we need to see a tax accountant or business planner to start this business or should cutting hair mobile and from home be pretty easy to work out? Not knowing your individual situation, it would most certainly be better to talk to an accountant, so as your current financial situation can be properly taken into account.

    Quote:
    How will all this affect our family tax benifit we get every 2 weeks from the government? this is an individual circumstances thing, start by trying to look at these: Family Tax Benefit Part A
    Family Tax Benefit Part B And when your all Baffled Beyond Belief I would suggest trying to arrange an appointment with these People to figure it out

    Hope that helps a little bit….

    #1056865
    hairstylist
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    Hi thanks for that, at the start she may be only doing 150-200 a week hair until it gets going so is all this necessary until she is earning at least 500 pw from the business?

    #1056866
    Anonymous
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    Hi Hairstylist,

    I would suggest you start looking here: Starting a business

    and here: ABR

    #1056867
    22523#deleted
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    • Total posts: 25
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    It would probably be best if you registered for an ABN, as this would also allow you to purchase from trade suppliers.
    When applying for your ABN you do not have to opt in to the GST section. If you earn over $55k or $75k (not sure of the current limit) per year you must be GST registered. If you earn less, just worry about the ABN for now and opt in to GST when you need to.
    If you dont opt in for GST you also wont have to worry about collecting gst data and completing a BAS quarterly.
    Your Family Benefits will only be affected once you reach income thresholds, and if this happens, then you would be making a success of your business.
    You might also need to speak to your local council about permits for your business, as it would come under the health and environmental officer.
    All the best, if you need email support for your bookkeeping, contact me or go to http://www.businesslist.com.au/onlinebookkeeper.htm

    #1056868
    StellarScott
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    1. Do we need to get an ABN?

    If your running a business you are required to have an ABN there is no minimum earnings here…the question is do you have to register for GST unless your current sales or next 12 months sales is more than $75,000

    2. Can we claim tax back on hair products brought with out an ABN number?

    For most business there are 2 taxes to consider first is GST second is income tax. If your registered for GST you claim GST paid back each quarter but also have to charge your clients GST and remit that.

    3. What can a business earn a year before you have to start paying tax?

    If business is set up as a sole trader any earnings are added to owners income from other sources and normal rates apply… this income will also effect family tax benefit in same way

    Cretsiah’s links are definitely worth looking at. Id also look at your states small business web page NSW is here http://www.smallbiz.nsw.gov.au/Pages/default.aspx

    Lots of good stuff for start ups

    Hope your business a success and happy to help at any time

    #1056869
    hairstylist
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    • Total posts: 6
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    wow, cheers guys…have a bit to think about then…
    Thanks for all the info, will be on here a bit more in the future me thinks.

    #1056870
    hairstylist
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    Last question lol..

    Do i need to be ABN or GST registered to be able to claim back on items like hair dressing chairs, laptop, petrol and maybe a company car later for the mobile hairdressing is so how much can you claim back.? plus is there some sort of depreciation value on a new car or something.

    #1056871
    Dave@SCBA
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    Hi Hairstylist,

    I believe it would be best seeing an accountant. They will (Should) cover off things you previously may not have considered, and will (should) be able to answer all these questions you have posted.

    ABN is a must do, click on that ABR link posted by cretsiah and you can get one from there.

    Taking a step back, what are you going into business for?
    Make sure your going into business for the right reasons.

    “My other question is that we have a 5 year old at full time school and a 2 year old….How will all this affect our family tax benifit we get every 2 weeks from the government?”

    In regards to the above there is two factors to FTB. Part A & Part B.
    Part A is Based on the combined income of you and your partner. Part B is pased on the secondary income earner. Given the age of your children I would assume that would be you!! In short yes it will affect your FTB, but once your business starts kicking into gear it would be worth seeing them to make an adjustment on the projected income which your FTB is based on. Nothing worse than paying bay FTB!!!!

    Which leads to my next question. Structure.
    What structure do you plan on having, Sole Trader, Partnership, Trust or Company?
    Each have their own advantages & disadvantages. Some have higher costs but these costs can easily be regained just from tax savings.


    Do i need to be ABN or GST registered to be able to claim back on items like hair dressing chairs, laptop, petrol and maybe a company car later for the mobile hairdressing is so how much can you claim back.? plus is there some sort of depreciation value on a new car or something.

    By claim I will assume “tax deduction,” as previously stated you may not be required to register for GST. Hair dressing chairs, YES laptop YES (but only business portion), petrol YES (but only business portion), and maybe a company car YES (but only business portion). By business portions i mean the amount of business “use.” Generally this is percentage.

    For Example:
    Say you do 500km’s a week, but every week 200km’s is for running around the kids. Your fuel bill for the week is $100. You would only claim 60% of the expense as a tax deduction. So $60 is a tax deduction.

    I really believe you should discuss all of the above with an accountant to get you going in the right direction.

    Regards and Good Luck!! =)

    Dave

    #1056872
    hairstylist
    Member
    • Total posts: 6
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    Hi Dave, thanks for all the info, i am starting to get my head around this a bit, or at least know what questions to now ask the accountant…Thanks every one….no doubt i will be on here again.

    #1056873
    AgentMail
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    Hi Hairstylist,

    My opinion for what it is worth. Get ABN and register for GST. It is good practice to get used to quarterly BAS payments, completing the paperwork etc. – One more hassle, but good business practice.

    But the recommendation of seeing an accountant, if you are unsure in anyway is a good one.

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