Tax advice

Hi all, just after some help! My husband as set up a buisness as a sole trader since emigrating in may. He doesnt work continuously as iam a nurse and the one with perment income therfore he works around me and there mostly for the children. Dont really want to pay for a tax agent as i think i can do this myself with some help from you guys!

I have opened a savings account and have put any money earnt into this account ( his income only). My questions are 1) do i need to deposit all cash into the account and take out what we need or can i just put enough in to cover tax and super as all his income has been cash?

2) What do i need to keep a record on i have started a book and record price of job, materials spent and profit made, also kept receipts for material

3) do we pay tax on income or profit?

Thanks

Would be grateful for any advice

You mention getting help from "you guys" which I take to mean you want help from other members - however you've actually posted in a section where ONLY the person from Vista Financial Services is allowed to answer you. If that's not what you meant, you should ask a moderator to move your post for you (click the exclamation button).

Assuming you did mean to ask for general advice, here's my suggestion. Get a program like Quickbooks and record all the income that comes in and all the expenses that go out on it. It will produce all the required calculations for you. You can also use it to produce invoices which is helpful as you can be sure they're in the right legal format.

If he's earning less than $75,000 a year then he doesn't need to register for GST. That will simplify his tax a lot, as if he registers for GST he will need to submit a quarterly BAS showing the GST he's charged his customers, and the GST he's spent on parts etc. If he doesn't register for GST then he doesn't charge his customers GST.

It doesn't matter whether you pay all the income into one account and it doesn't matter what you withdraw: the important thing is that you have a record of money earned and expenses paid, which you will have in Quickbooks, and the paperwork to support that.

I assume he's running a vehicle which he uses for work either sometimes or all the time, there are rules about how to manage that which you should Google.

There are several good programs you could use instead of Quickbooks. I only suggest it because I have a friend who runs a dancewear shop. She is not computer-savvy at all and we had a few false starts finding her a program she could understand and use. Quickbooks worked for her, so I think it would work for anybody!

I do think it would be worth paying someone to get it all set up properly to start with though.

Moved into the money section. :-)

Hi all, just after some help! My husband as set up a buisness as a sole trader since emigrating in may. He doesnt work continuously as iam a nurse and the one with perment income therfore he works around me and there mostly for the children. Dont really want to pay for a tax agent as i think i can do this myself with some help from you guys!

 

I have opened a savings account and have put any money earnt into this account ( his income only). My questions are 1) do i need to deposit all cash into the account and take out what we need or can i just put enough in to cover tax and super as all his income has been cash?

2) What do i need to keep a record on i have started a book and record price of job, materials spent and profit made, also kept receipts for material

3) do we pay tax on income or profit?

Thanks

 

 

Would be grateful for any advice

Your questions show that you are nowhere near equipped to handle this yourself. Find an accountant to at least get you set up, you can get into trouble if you get this wrong.