Newbie problems! Help!

[tangled spider]

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I’ve just started out as a freelancer, and I believe my turnover is going to be less than the threshold for GST. However, my clients are telling me to include GST on my invoices. I just sent off one a short while ago! Should I tell them to ignore that one, and resend one without GST? What should I do?

I’m also under the income tax threshold, but I’m having difficulty reporting my earnings and tax for this year. I can’t afford an accountant to help me with these problems. This is such a rock and a hard place!

Finally, is there an app or something I can use that will automatically calculate everything to keep the ATO happy when reporting?

[Dave Gillen – Former FS Concierge]

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Hi there,

Welcome aboard the forums!

There’s 2 tax calculators here if that’s what you’re looking for:
https://www.ato.gov.au/Calculators-and-tools/Simple-tax-calculator/
https://www.ato.gov.au/Calculators-and-tools/Comprehensive-tax-calculator/

Regarding GST I believe there is no GST if you’re not registered, so I think you’d explain to them they are not being charged GST and don’t include it on the invoice. One of our tax professionals might be able to give you further info.

Dave

Dave Gillen | LinkedIn

[MyGreatIdea]

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When you send them your invoice, it may help to include “Not registered for GST” somewhere on the invoice. Also, make sure you’re labelling it “Invoice” and not “Tax Invoice”.

I think what they’re probably wanting you to do is to show the amount of GST included as a separate item, not realising that you aren’t registered.

Hope that helps.

Wendy

[Kelly Exeter FS Editor]

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Yup what Wendy said. You just have to state very clearly somewhere on the invoice that no GST is charged as you are not registered for GST

[bb1]

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https://www.ato.gov.au/Business/Bus/How-to-set-out-tax-invoices-and-invoices/?page=7#Goods_or_services_that_do_not_include_GST

[Brigid_Og]

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Just want to say a quick Thank You, i was just about to post the same question but found the answer here!

[Taxopia]

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tangled spider, post: 222038, member: 71984 wrote:

I’ve just started out as a freelancer, and I believe my turnover is going to be less than the threshold for GST. However, my clients are telling me to include GST on my invoices. I just sent off one a short while ago! Should I tell them to ignore that one, and resend one without GST? What should I do?

I’m also under the income tax threshold, but I’m having difficulty reporting my earnings and tax for this year. I can’t afford an accountant to help me with these problems. This is such a rock and a hard place!

Finally, is there an app or something I can use that will automatically calculate everything to keep the ATO happy when reporting?

Hey there TS. What entity structure do you operate within? Would it be fair to say that your services are provided entirely to clients within Australia?

[Author]

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