Home – New Forums Starting your journey Tax time is coming. I need help

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  • #983277
    Muges
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    Hi all, I’m a new business owner (online retail) and I’m not registered for GST as I’m below the $75,000 threshold. I run this business on the side as I also have a full time job. When I do my tax return for my full time job what will I need to do with regards to my online business. I have invoices for my sold items through my website but I also trade on eBay with my business name so what happens there?

    Thanks

    #1141546
    Past-Member
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    The financial year is 1st July to 30 June.
    Read more at the ATO Individual here
    http://www.ato.gov.au/individuals/pathway.aspx?sid=42&pc=001/002/006&mfp=001&mnu=42496#001_002_006

    The business page for ATO (incuding you) is at
    http://www.ato.gov.au/businesses/content/45518.htm

    An accountant is a great asset to have even at this stage of your business – their fees are tax deductible for the following year. And they will be able to advise you what is best for you in your circumstances.

    Cheers.

    #1141547
    KellyB
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    Basically you need to total up all your income, all your expenses and calculate your profit. This profit will then get added onto your income from your full time job and you pay tax at whatever your relevant rate is.

    As Karen has suggested, getting a (great) accountant is probably a good idea now that you are running a business as tax gets a bit more complicated once uu are self employed!

    Regards
    Kelly

    #1141548
    Muges
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    So the $75000 threshold is the combined income or just the income from my business?

    #1141549
    Jason@Plumsale
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    No the $75K is only for the income from the business only. It does not include your income from employment.
    Your tax return will have a separate section to complete for your income and expences for your business. But then the profit then gets added to your personal income and taxed accordingly.

    Definetly see an accountant, esp to do your tax return.

    #1141550
    Healthy Personal Finances
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    Yes – agree with the above.
    In your individual tax return there is a section to include payment summary income from your employer, and then there is another section for “business” income where you put any income and expenses you earn/pay being a sole trader.

    You put in all your income – whether you sell direct, via ebay, online, whatever and there is a section for business deductions. So you can generally claim expenses that relate to you earning the assessable income, providing it is not of a private or capital nature.

    To get the best deductions and know your entitlements, definetley invest in a good accountant. They should not only be able to help with your yearly tax return, but with tax planning, cash flow, business stucture – so much more !

    Hope this helps.
    Cheers
    Stacey

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