Home – New Forums New here? Share your story Solo Trader ABN & Pty Ltd ABN, & invoices without GST

  • This topic is empty.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • #999183
    Navi
    Member
    • Total posts: 1
    Up
    0
    ::

    Hi, i would like to get some opinions on couple of questions.

    1. I’m solo trader with GST register. i regularly lodge my Bas quarterly.
    But I’ve send few invoices to my client without GST,
    My overall ABN income of FY 17/18 = $35K, (has paid Gst of 40% of this income)
    And PAYG $40K
    So total is around : $75828 (margin above the $75K bar)
    Please advise. Do i need to pay GST on invoices which i didn’t charge to my client from my pocket?

    2. Now i’ve two ABN, one as solo trader and one as Pty Ltd company.
    solo trader ABN is registered for GST and Pty Ltd ABN is not registered for GST
    If combining both income its well over $75K bar.
    But each of them is under $75K bar.

    Do i need to register Pty Ltd to GST as well. Or i can only pay GST for my solo trader ABN.
    I mean ATO combine both incomes (both ABN of one person) and then count it as $75K or look for every ABN regardless person identity.

    Please advise.

    #1218218
    Rowan@quaotic
    Participant
    • Total posts: 712
    Up
    0
    ::

    I think you need to make an appointment with your accountant.

    #1218219
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::
    Navi, post: 263228, member: 113104 wrote:
    Hi, i would like to get some opinions on couple of questions.

    1. I’m solo trader with GST register. i regularly lodge my Bas quarterly.
    But I’ve send few invoices to my client without GST,
    My overall ABN income of FY 17/18 = $35K, (has paid Gst of 40% of this income)
    And PAYG $40K
    So total is around : $75828 (margin above the $75K bar)
    Please advise. Do i need to pay GST on invoices which i didn’t charge to my client from my pocket?

    2. Now i’ve two ABN, one as solo trader and one as Pty Ltd company.
    solo trader ABN is registered for GST and Pty Ltd ABN is not registered for GST
    If combining both income its well over $75K bar.
    But each of them is under $75K bar.

    Do i need to register Pty Ltd to GST as well. Or i can only pay GST for my solo trader ABN.
    I mean ATO combine both incomes (both ABN of one person) and then count it as $75K or look for every ABN regardless person identity.

    Please advise.

    I agree 200% with [USER=28171]@Rowan @ GardenLarder[/USER] go see an accountant before you issue one more receipt.

    It may be the way you have written it.

    But if you are registered for GST you should not be issuing invoices without GST

    Plus I am not sure how you can be paying 40% GST.

    As I said it may be the way you have explained it.

    Go see an accountant, now

    #1218220
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::

    Hi And Welcome to Flying Solo [USER=113104]@Navi[/USER]

    Thank you for joining our community and posting today.

    You may be getting your accounting or tax terms mixed up a bit and Accountant could help you quite quickly.

    Cheers

    #1218221
    ContentCreative
    Member
    • Total posts: 24
    Up
    0
    ::

    Hi [USER=113104]@Navi[/USER]

    I agree with both [USER=53375]@bb1[/USER] and [USER=28171]@Rowan @ GardenLarder[/USER] that it is definitely worthwhile speaking with your accountant.

    The way that I understand your situation however is;

    1. If you are registered for GST and did not add GST to your invoices, you are still liable for the amount of GST owed to the ATO. You can either request this from your customer or pay it from your own pocket. If the sale was a business expense for your customer, the GST they pay to you will be offset against what they owe to the ATO and will not be coming out of their own pocket.

    2. Less certain of this, however as yourself and your company are classified as two separate entities, they are likely calculated separately. The money you pay yourself from the company is a salary and you are not personally responsible for GST on that, however the company itself is liable for the GST it collects from sales.

    As has already been recommended, go see your accountant and get the matter cleared up.

    #1218222
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::
    ContentCreative, post: 263248, member: 113115 wrote:
    1. If you are registered for GST and did not add GST to your invoices, you are still liable for the amount of GST owed to the ATO. You can either request this from your customer or pay it from your own pocket.

    Yes, but maybe no, if they have quoted the client a fixed price, they can’t go back and request it from your client. Plus how professional does it look to say, hey you have paid my bill, but now I want more because I forgot GST.

    ContentCreative, post: 263248, member: 113115 wrote:
    If the sale was a business expense for your customer, the GST they pay to you will be offset against what they owe to the ATO and will not be coming out of their own pocket.

    Another yes, but maybe no, if the client is not registered for GST, then they can’t just offset it against anything,

    The OP doesn’t mention if they have business or private customers.

    See an accountant, get their advise, and be cautious of any advise provided by others, no one can give you advise without knowing your and your clients full circumstances. There is insufficient information in your questions for even a good accountant to give solid advise.

    #1218223
    ContentCreative
    Member
    • Total posts: 24
    Up
    0
    ::

    Hi [USER=53375]@bb1[/USER]

    If the items were fixed price, then they wouldn’t be adding GST in the first place. I do agree with you about the professionalism, however, that is a matter for Navi to decide on. Personally, if I forgot to add GST on something I would just absorb it and take it as a lesson.

    The second point you are quite correct; if the customer is not themselves registered for GST they would not be able to offset. It is still something worthwhile considering in the decision on whether to approach them or not.

    The OP asked for an opinion, which I provided to the best of my knowledge. The advice I gave, identical to yours, was to visit their accountant.

Viewing 7 posts - 1 through 7 (of 7 total)
  • You must be logged in to reply to this topic.