Hi and I hope some one can help.
I have a business that is making a profit and recently had a partnership between my spouse and I. 70/ 30 split.
once you make an election on the split you cannot change it and this is the problem as the 30% for peter this year is too high based on his wages.
Peter is a salary earner and I am not. I envisage a big profit this year in the business and therefore registered a company. I am now in the process of applying for a new abn, tfn and need to register for the gst again for the company.
my question is - say the company makes a $50K profit.. do i pay tax of 30% on that and then split the profit or can i automatically distribute that profit - perhaps $5k to peter and then $45k to me. this will then get shown on the personal tax return.
also what claims can i make now through the company. Our cars are not registered in the company so I guess i will not be able to claim the gst on vehicle expenses, but instead will claim the expense in the personal tax return..
also now expenses such as mobile phone are still in my name.. If i were to claim it into the company do i need to change the account holding name from my name to the comany name in order to claim.
any advice would be appreciated.
I am speaking to accountant next week but would like to educate myself at the same time.
thanks
I have a business that is making a profit and recently had a partnership between my spouse and I. 70/ 30 split.
once you make an election on the split you cannot change it and this is the problem as the 30% for peter this year is too high based on his wages.
Peter is a salary earner and I am not. I envisage a big profit this year in the business and therefore registered a company. I am now in the process of applying for a new abn, tfn and need to register for the gst again for the company.
my question is - say the company makes a $50K profit.. do i pay tax of 30% on that and then split the profit or can i automatically distribute that profit - perhaps $5k to peter and then $45k to me. this will then get shown on the personal tax return.
also what claims can i make now through the company. Our cars are not registered in the company so I guess i will not be able to claim the gst on vehicle expenses, but instead will claim the expense in the personal tax return..
also now expenses such as mobile phone are still in my name.. If i were to claim it into the company do i need to change the account holding name from my name to the comany name in order to claim.
any advice would be appreciated.
I am speaking to accountant next week but would like to educate myself at the same time.
thanks