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  • #973149
    dana_c_83
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    Hi,
    I started working as a sole trader last August performing medical writing. I am also employed during the day as a Research Officer for a company. Tax time is coming up and I have been reading and re-reading the ato website like a madwoman and am now doubting whether I have missed something. When starting up the business I applied for an ABN and off I went, my primary writing work comes from my employer at my day job and I have since taken on two other clients through word of mouth, which means I satisfy the PSI criteria, is this correct?
    I have just read on the ato website about a business tax file number, do I need this?
    Also my invoices have been paid in full and I have set up an account for the money to go into, however I have not paid any tax on this yet. I had been informed by an accountant that my business money will simply be grouped in with my other income at the end of the year and I will pay tax on it then however I just want confirmation that this is in fact the case.
    Also my income from the writing will be approximately 35k this year and my salary is $54750. Is there anything else I am missing?

    Any help would be greatly appreciated!
    Dana

    #1060034
    MyGreatIdea
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    dana_c_83, post: 74072 wrote:
    Hi,
    I started working as a sole trader last August performing medical writing. I am also employed during the day as a Research Officer for a company. Tax time is coming up and I have been reading and re-reading the ato website like a madwoman and am now doubting whether I have missed something. When starting up the business I applied for an ABN and off I went, my primary writing work comes from my employer at my day job and I have since taken on two other clients through word of mouth, which means I satisfy the PSI criteria, is this correct?
    I have just read on the ato website about a business tax file number, do I need this?
    Also my invoices have been paid in full and I have set up an account for the money to go into, however I have not paid any tax on this yet. I had been informed by an accountant that my business money will simply be grouped in with my other income at the end of the year and I will pay tax on it then however I just want confirmation that this is in fact the case.
    Also my income from the writing will be approximately 35k this year and my salary is $54750. Is there anything else I am missing?

    Any help would be greatly appreciated!
    Dana

    Hi Dana

    Trust your accountant :) As a sole trader with an ABN your employed income and business income will be put together and tax paid on the total. A business tax file number (TFN) is required for a pty ltd structure (and possibly others, I’m not sure) but your business will be under your personal TFN for returns.

    As far as not having paid tax on your business income, I would suggest that you put aside tax each week/month. Put it into a separate bank account if necessary, or if you know you won’t touch it, allocate it within your accounting software.

    Sounds like your business is taking off nicely !!

    Wendy

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