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  • May 30, 2022 at 1:39 pm #1236790
    Mr Solo
    Participant
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    Hi Guys
    Just wanted to ask people some accounting / sole trader questions.

    As a sole trader, I would like to one day apply for a homeloan and of course banks always look at ATO lodgements for your financial year.

    Should I :

    1) Pay myself a PAYG employee wage from the business bank account to my personal bank account / while paying tax on that and having pay slips etc.

    2) Try to not claim all my deductions but, save my tax bill quite alot but end of having ATO lodgements that say my expenses are high and banks reject my financials in later dates

    I was considering to pay myself a fortnightly wage with super / tax paid as an employee and write it off as wages on the business account and leave everything else on the business account as a business expense / income.

    What are people doing to help make their lives less complicated and easier to manage. Your advice
    Thank you
    Aiden

    May 30, 2022 at 1:45 pm #1236801
    Paul – FS Concierge
    Keymaster
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    Hi And Welcome to Flying Solo Aiden. It is great to have you!

    Thank you for joining our community and posting.

    Get some paid Accounting advice.

    That said, Sole Trader is the easiest of the entities to record payments.

    If you do PAYG and Super, you pay the tax and super at BAS time.

    Otherwise just an entry that says Owners Pay is fine.

    Your salary is a business expense so the (simple) tax implications are already “baked in”.

    There are other ways to do things, hence getting paid accounting advice before you start is a better way to go about things.

    Cheers
    ~Paul

    June 7, 2022 at 1:08 pm #1236954
    Suze English
    Moderator
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    Hi Aiden. I’m no expert, but there are some very good reasons for allocating yourself a salary or wage as a solo business owner, which are outlined in this article by financial advisor Brad Turville which you might find handy. Definitely a great idea to get some advice from an account or financial advisor so you can be sure you choose the best options for your circumstances. Good luck!

    Deputy Editor Flying Solo and Kochie's Business Builders
    June 20, 2022 at 3:06 pm #1237127
    Bendmark
    Participant
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    Hi Aiden,

    As a sole trader you cant be on the wages yourself , you still can hire employees but being a sole trader , you only allowed to draw the profit from trading

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