Forum Replies Created
October 8, 2014 at 4:26 am #11725773ntr3pr3n3ur, post: 200635 wrote:Brodie,
Be mindful; you will only pay tax on the amount you earn OVER the threshold… It doesn’t then apply to your enntire earnings….
i.e. if you earn $5,000 over the tax free threshold you will only be taxed on that amount, not everything else that you’ve earned….
Yes, i’m aware of that. Thankfully.
I seriously doubt that I will be making the $18,200 in these 6-8 months coming, if I do i’ll be very surprised.
Thanks for the reply!September 30, 2014 at 8:45 am #1172575joeljp, post: 200442 wrote:Hi Brodie, when you register a business name and use it to trade, you’re effectively trading as a sole trader. Any income derived from the your operation becomes part of your personal taxable income. You’re wise in already thinking about putting money aside for tax. There must be so many out there who never consider this, as well as GST. Then the BAS quarter or the end of the year tax time, they are left wondering where did all the money go and how are they going to pay the tax bill. Bravo!
All the best with your venture!
Yes, I have a friend who works in the same field as I, and he puts a certain percentage of everything he earns with his own business into an account he doesn’t touch (what discipline!) and then if he busts the $18,200 dollar threshold, he has the money to pay.
As I only work between 10 – 12hrs a week, on an award wage. I barely make $15,000 a year – but i’m studying full time and I’ve done some cash work for friends and family to help support myself, and I really enjoy what I do, so why not try the freelance route and gain a nice client base and hopefully in the future have a small, successful business that keeps me out of trouble?
I really can’t see myself breaking the threshold, but will my account at tax time class those earnings away from my day job as something else and I get stung?
As I said earlier, i’m really new to this and i’m jumping in quite deep, with study, work and my own commitments, but I find I learn best under pressure, and sometimes learn the hard way, but it’s usually the most effective way.
Thanks for your time and wisdom, I really appreciate all the help guys!September 30, 2014 at 8:39 am #1172574FS Concierge, post: 200433 wrote:Hi Brodie,
Welcome to Flying Solo, and thanks for joining us
I hope you pick up lots of handy info here to help you get your new venture up and running – Jason has gotten things off to a great start there (thanks Jason!)
All the best,
I looked around for a good community and some helpful tips, and this site fit the bill quite nicely, thanks for having me!September 30, 2014 at 8:38 am #1172573Jason@Plumsale, post: 200405 wrote:Brodie,
If you are going to trade as anything other than your own name then yes you will also need to register that business name.
Basically you will add your profit from your business to your normal wages then that will become your taxable income. So it will depend on your expenses and how much is left over at the end of the year.
Personally I would either not pay yourself from the side business if you can and pay yourself at the end of the year when you know. If you do need some of that money then either treat your business as a second income where you can not claim the tax free threshold. This would be the safest option.
Looks like I may as well just pay the $80 dollars and then I don’t have to worry.
All my income from the work I do just goes into my spendings account, I haven’t gotten around to opening a business banking account, as I don’t think i’ll be earning any more than 2,000 to 4,000 dollars until I finish up studies and get some more time on hand.
My expenses right now are very minimal, just a monthly bill for a programme, then ink for my printer, and as I’m working from home, I don’t think I can claim my electricity and rent as an expense haha.
This is a silly question (There are no silly questions?) but can I put all of my side income from this business into my savings account, then i’ll know at the end of the year whether I need to pay taxes, or does it have to be a business specific bank account.
Sorry, completely new to all of this, last business class I took was back when I was in year 8. As you may understand I don’t intend on hiring an accountant to help me out as I simply can’t afford it at this time, I’m already working more than I want to be with full time study, but the way I see it is I push through now, and when i’m 65 with my waterfront property and BMW parked in the driveway, i’ll be thanking my younger self!
Thanks for the help mate, really appreciate the time.