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  • #995129
    Anonymous
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    I am looking at buying a shop but I want to scale back part of it which would leave a lot of empty space. My wife said she would like to expand her business, so would sub-lease the space with her company. We would end up with my staff doing work for her like putting through sales, answering calls etc. How do I charge her for the part use of my staff and other expenses. The sub-lease and outgoings can be handled with a lease agreement.

    Can I do legitimate expense transfers like staff costs between the two companies, even if they meet various definitions of associated, connected etc under tax law. How would I do it, simply raise an invoice to her company for her share of expenses. How do I handle GST especially on staff expenses.

    #1200164
    MichaelF
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    Smb, post: 237015, member: 79633 wrote:
    How would I do it, simply raise an invoice to her company for her share of expenses. How do I handle GST especially on staff expenses.

    Correct. Think of it as two completely separate companies (only physically close together), in which one company’s employees provides services to another company. Sounds like every service based business now. Simply raise an arms length invoice to her company.

    As for the GST, if you are registered for GST, you must add it on the invoice for the services and account for it in your BAS.

    See here for some more information.

    #1200165
    Mischelle
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    Hi SMB,

    Simply work out the employee’s rate (include super and insurances) and invoice for the hours worked. It’s the same as if you got a temp from an agency, they just invoice you.

    As Michael said, if you are GST registered it’s just a normal tax invoice. I do this with my husband’s business every now and then when his staff are on leave.

    The key part is understand how your staff will track their hours.

    I am not sure what other expenses you are wanting to charge, but I have sublet part of my office out and they pay a single monthly rent which includes power, internet, 2 car parks etc.

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