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  • #982942
    Alwayshope
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    Just a question-I am subcontracting-thus work on the premises for a company but invoice them- just wondering what percentage I should put aside for tax-20%? I am just wondering regarding what deductions I can make -since i do work onsite but do work from home for one other client.

    #1139766
    JoshG
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    Alwayshope, post: 159483 wrote:
    Just a question-I am subcontracting-thus work on the premises for a company but invoice them- just wondering what percentage I should put aside for tax-20%? I am just wondering regarding what deductions I can make -since i do work onsite but do work from home for one other client.

    http://www.taxcalc.com.au won’t give you the deductions but it’s an awesome resource for finding out how much you’ll owe at the end of the period including levies (if you can estimate your year-end income).

    I usually use that and then manually calculate deductions. Then I cry and crawl under the desk, but that’s not really the point.

    #1139767
    Sign Here Graphix
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    As far as I am aware you have to have at least 2 clients with an 80/20 split minimum.

    Sounds like you need to speak to an accountant though to talk you through claimable expenses, rebates, GST etc…

    The last thing you want is thinking you have lodged all you need correctly only to discover the ATO breathing down your neck.

    #1139768
    Chris – Marketing
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    Hi Josh I am with “sign here graphix”. Working on site and not using any of your equipment adding to this a higher ratio working on site to home client. You may be deemed as an employee.
    So I strongly recommend for you to make an appointment with your accountant where u can disclose the situation holistically. It is your responsibility to be aware of the Tax requirements and provide adequate evidence in the form of bookkeeping.

    #1139769
    Alwayshope
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    Chris – Marketing, post: 159540 wrote:
    Hi Josh I am with “sign here graphix”. Working on site and not using any of your equipment adding to this a higher ratio working on site to home client. You may be deemed as an employee.
    So I strongly recommend for you to make an appointment with your accountant where u can disclose the situation holistically. It is your responsibility to be aware of the Tax requirements and provide adequate evidence in the form of bookkeeping.

    hi thanks but i am not an employee as i subcontract and do other work from home

    #1139770
    Greg_M
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    Alwayshope, post: 159483 wrote:
    Just a question-I am subcontracting-thus work on the premises for a company but invoice them- just wondering what percentage I should put aside for tax-20%? I am just wondering regarding what deductions I can make -since i do work onsite but do work from home for one other client.

    20% always seemed to go close for me (when I actually managed to do it). I mentioned in another post, a labour hire company I used to work through withheld 20% for tax and I never had a shortfall come tax time.

    As always, your accountant knows best … but I always work on the basis that any cost associated with generating income is deductible (till my accountant tells me I’m wrong). Plus there’s depreciation on assets used to generate income, vehicle etc, if you’re working on site. I’d have thought you’d get a percentage of costs if you have a home office as well (power, data etc)

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