Home – New Forums New here? Share your story Hi from another sole trader with some questions

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  • #982593
    Anonymous
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    Hi everyone,

    I am new to the country, new to this forum and new to the whole sole trader business. So if anyone would be so nice to answer some questions that would be great!

    I have applied for an abn about 2 weeks ago, but don’t have it yet. I do already have some work lined up and I need supplies and a car for this. My question is: will i be able to deduct these items if I buy them now as I don’t have my abn yet and also because I don’t have an income yet I would like the car to be financed by my partner and put it in my name. If I do this can I still deduct the car for my business?

    Hope someone can answer this.

    Cheers Tessa

    #1137630
    Sasha3232
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    You might have to do a call out to accountancy experts for this one! Or ring up ASIC and ask for an expedited ABN?

    #1137631
    CindyK
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    Hi Tessa,

    First of all, how did you register for an ABN? Using the online services means that, if you are eligible, you would have gotten an ABN straight away. If you didn’t get one it means that your details needed further verification and it can take up to 28 days.

    I recommend you contact them to check your status, as they advise, – here is the contact page.

    I suggest you find out what happened to your application first before going any further. I believe that technically you can begin the business and claim the deductions (this was previously the case, but I can’t find any verification at the moment) however, if your application is on hold – then sort that out first in case it is rejected and your expenses are then not valid.

    As to the car part – there are rules about vehicle travel claims for sole traders – find a Tax Agent to advise you on how to claim your expenses and what proof you need. You cannot just claim the whole lot – whether it is in your name or your partners and as you are a sole trader, the business will not own the vehicle – you will. This comes into your personal Tax Return and only a registered Tax Agent should advise you on the rules and your requirements.

    Good Luck!

    #1137632
    Jodie McLeod
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    Hi Tessa,

    Welcome to the forums on behalf of the Flying Solo team!

    You’ve come to the right place for help with these kinds of questions. I’m sure there’s more advice coming your way soon.

    If you like, feel free to add a some info about your business in your signature by clicking “control panel” in the grey bar above.

    Best of luck in these early days of your business!

    Jodie

    #1137633
    Sophie Andrews
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    Hi and welcome

    Just wondering – if you are new to the country whether it is the fact you are not an Australian resident that is holding up the ABN? What country are you from?

    #1137634
    Anonymous
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    Hi Cindy,

    Thanks for your reaction.

    I applied for an abn online and already rang them, but they could not give me any information, just said I had to wait 28 days.. So far for a status check which took me 45 minutes.. lol.

    I also contacted a few accountants, so I hope they can help me out, but just thought to try this forum first.

    #1137635
    Anonymous
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    Yeah, this is what I thought as well. I am from Holland, but do have a permanent residency, which should do the trick..

    #1137636
    Accounts Studio
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    In terms of claiming motor vehicle costs – what type of business is it that you are going to operate and will you be a sole trader or company?

    #1137637
    Anonymous
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    I am a mobile massage therapist and will be acting as a sole trader. I will need a car for my business as I will have to travel with my equipment to clients ( homes/sporting fields..)

    #1137638
    Accounts Studio
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    If you have applied for an ABN already and it is eventually approved then you would be able to claim those expenses – but just make sure that you have tax invoices for everything. Not sure if you mean that you would be paying your partner for the car or he would get finance from a dealer?

    #1137639
    Anonymous
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    My partner will be paying the car through finance, but the car will be in my name. This is just because I don’t have a job yet, so I won’t be able the get a finance. I will be paying for the car eventually

    #1137640
    Smythie
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    Hi Tessa,

    Congratulations on starting your business here in Australia and even bigger congratulations for having business coming in your door already. I am curious, what type of business do you have?

    Best of luck,
    Alison

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