Home – New Forums Starting your journey Tax for Sole Trader Side Business

  • This topic is empty.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #995575
    josiefox
    Member
    • Total posts: 18
    Up
    0
    ::

    Hi All,

    I need some help to figure out how much I should be putting aside for tax.
    I work a full time job and have started a sole trading business on the side. My income from my full time work is 45,000 plus super. My side business income would be on top of that so how much (%) should I be putting aside from that to ensure I’ll cover the tax at the end of the year?

    I have looked it up online and it states that for $37,001 – $80,000 tax would be $3,572 plus 32.5% for each dollar over $37,000. Does that mean I should put 32.5% away of my side business income since I’d already be at $45,000 for the year from full time job?

    Thanks,
    Josie.

    #1202753
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::
    josiefox, post: 240460, member: 67820 wrote:
    Hi All,

    I need some help to figure out how much I should be putting aside for tax.
    I work a full time job and have started a sole trading business on the side. My income from my full time work is 45,000 plus super. My side business income would be on top of that so how much (%) should I be putting aside from that to ensure I’ll cover the tax at the end of the year?

    I have looked it up online and it states that for $37,001 – $80,000 tax would be $3,572 plus 32.5% for each dollar over $37,000. Does that mean I should put 32.5% away of my side business income since I’d already be at $45,000 for the year from full time job?

    Thanks,
    Josie.

    The short answer is yes but there is a longer answer taking account of deductions and other info our Accountant members know.

    #1202754
    Divert To Mobile
    Member
    • Total posts: 2,751
    Up
    0
    ::

    Hi Josie,

    The tax paid out of your work income is taking into account the tax free threshold and lower tax brackets you pass through.
    To figure out exactly how much to put aside each week you will need to combine the incomes, factor in the withholding tax your employer has deducted on your behalf and calculate the remaining tax payable.

    Sound complicated? it is.
    IMO (and depending on how well your sole trading business goes) just put away about 30% each week ready for the end of year calculations. If you don’t blow out to the next tax bracket you should have more than enough to cover the extra tax liability.

    best of luck,
    Steve

    #1202755
    Easysmb
    Member
    • Total posts: 84
    Up
    0
    ::

    Hi Josie
    Nice design portofio.
    Regarding the income from design as a sole trader, your tax payable will be net income (sales minus all your related expenses, not your total sales) taxed 32.5%+2% medi levy. The actual margin tax is 34.5%.

    by the way: your resume download link on your site is not linked to any file.

    Good luck.

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.