Home – New Forums Money matters Sole Trader also working outside as full time employee tax questions.

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  • #996285
    RJames
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    Afternoon all,

    I have a few questions and hoping someone may have some answers.

    I’ve contacted my accountant but he wanted $250 for an appointment to answer these questions, so I thought i’d come here first.

    I currently work full time 38 hours a week as a baker and I started up as a sole trader on the side in September 2016.
    My business is in waste management, I’ve currently spent $50,000 on equipment (trucks, forklift), a welder, trailers and water cartage tanks ect.

    For the 50K investment, i’ve started slowly and currently only secured $3000 of work so far.

    So will any deductions I make through the business roll over to my personal income when I have no more income to deduct from within the business?
    Or would it just roll over until next year?

    Any help is appreciated.

    Thank You.

    #1206619
    bb1
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    RJames, post: 245682, member: 45806 wrote:
    Afternoon all,

    I have a few questions and hoping someone may have some answers.

    I’ve contacted my accountant but he wanted $250 for an appointment to answer these questions, so I thought i’d come here first.

    I currently work full time 38 hours a week as a baker and I started up as a sole trader on the side in September 2016.
    My business is in waste management, I’ve currently spent $50,000 on equipment (trucks, forklift), a welder, trailers and water cartage tanks ect.

    For the 50K investment, i’ve started slowly and currently only secured $3000 of work so far.

    So will any deductions I make through the business roll over to my personal income when I have no more income to deduct from within the business?
    Or would it just roll over until next year?

    Any help is appreciated.

    Thank You.

    I can’t help you with your questions, just a suggestion though, sack your accountant and find one willing to work with you and not drain your wallet for some simple advise.

    #1206620
    James Millar
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    RJames, post: 245682, member: 45806 wrote:
    Afternoon all,

    I have a few questions and hoping someone may have some answers.

    I’ve contacted my accountant but he wanted $250 for an appointment to answer these questions, so I thought i’d come here first.

    I currently work full time 38 hours a week as a baker and I started up as a sole trader on the side in September 2016.
    My business is in waste management, I’ve currently spent $50,000 on equipment (trucks, forklift), a welder, trailers and water cartage tanks ect.

    For the 50K investment, i’ve started slowly and currently only secured $3000 of work so far.

    So will any deductions I make through the business roll over to my personal income when I have no more income to deduct from within the business?
    Or would it just roll over until next year?

    Any help is appreciated.

    Thank You.

    As a sole trader your biggest problem is going to be the non commercial loss rules as they will likely quarantine the business loss and carry it forward. There may be more to it depending on your circumstances. I would consider it a borderline paid / unpaid engagement. Your existing accountant should know your circumstances so 20 mins (maybe up to 30) discussion and conclusion should cover it. The hourly rate sounds reasonable but I don’t think its a one hour task. If you went to a new accountant that knew nothing about your tax history or operations then I could understand the extra time required.

    Bert I think that might be a slight over simplification. There could be some nuance that changes the tax position. But yes – non commercial losses and sole traders are generally relatively straight forward matters.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1206621
    Fionao
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    I totally agree with James. It’s a 20 minute max phone conversation for any of us operating in that sphere assuming we already knew your existing situation.

    #1206622
    Alan Maddick
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    • Total posts: 410
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    Without knowing everything about your situation it is unlikely that the money you have spent will as you put it “roll over” to your personal tax return, this actually quite a simple piece of tax law. You can find out all you need to know at the ATO, you will need to read through the four tests to see if you qualify — https://www.ato.gov.au/Business/Non-commercial-losses/

    Most important is – is your business plan on track? Was this the expected outcome at this point in time in your new business? Sounds like you have invested a lot of money in the business, I would work with your Accountant (or another business adviser or get a better Accountant if you are not confident in their abilities) to get your business kicking goals.

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