Self employed
- Thread starter bojangles
- Start date
yup. what's the wider q here?
bout 30 % I recall from a previous poll
ta
rolf
ta
rolf
I wouldn't have thought so.
The ATO send me a quarterly PAYG instalment, they estimate the quarterly instalment from the previous years lodged tax return.
I am able to pay the amount they say on the form, or vary it up and down in accordance with my actual quarterly figures.
Normally you would pay a quarterly instalment (tax) in arrears. ie you need to pay an instalment by 28 Oct for the money you have earnt in July/Aug/Sep.
When you lodge the tax return at the end of the year - they work out how much tax you owe and take into account how much you have paid in instalments through out the previous 4 quarters of that income year. If you have paid too much in the 4 quarters you get a refund, if you haven't paid enough, then you will have to cough up the difference.
In my first year self employed, I didn't have to pay any quarterly instalments and at the end of the year my accountant said here is your tax bill, pay it in one lump sum. That was ok as I had an idea of how much the tax would be, so just kept it in advance on my home loan until I had to pay it to the tax theif - kind of like an interest free loan from the tax man
The ATO send me a quarterly PAYG instalment, they estimate the quarterly instalment from the previous years lodged tax return.
I am able to pay the amount they say on the form, or vary it up and down in accordance with my actual quarterly figures.
Normally you would pay a quarterly instalment (tax) in arrears. ie you need to pay an instalment by 28 Oct for the money you have earnt in July/Aug/Sep.
When you lodge the tax return at the end of the year - they work out how much tax you owe and take into account how much you have paid in instalments through out the previous 4 quarters of that income year. If you have paid too much in the 4 quarters you get a refund, if you haven't paid enough, then you will have to cough up the difference.
In my first year self employed, I didn't have to pay any quarterly instalments and at the end of the year my accountant said here is your tax bill, pay it in one lump sum. That was ok as I had an idea of how much the tax would be, so just kept it in advance on my home loan until I had to pay it to the tax theif - kind of like an interest free loan from the tax man
In my first year self employed, I didn't have to pay any quarterly instalments and at the end of the year my accountant said here is your tax bill, pay it in one lump sum. That was ok as I had an idea of how much the tax would be, so just kept it in advance on my home loan until I had to pay it to the tax theif - kind of like an interest free loan from the tax man
Yeah the first year is pretty good, second year is ok but when they decide to quadruple my quarterly payments the following year i start to wonder if they know something i don't
Note: i know i can adjust it but i'd rather get the refund
hello,
not sure about the size of your business, but if small ie. lets say you are a contractor
then very seriously get yourself out from the grip of the accountant,
i daily come across "contractors" in the building industry who have been lets say "suckered" by accountants,
people were rocking up to accountant with all beautiful ledger (receipts & invoices) ready for quarterly BAS, accountant said thankyou very much I will fill out form and send in, here is bill for $150,
i find the first step in the process of being caught by accountant is when they get all your ATO documents sent to their offices,
thanks
myla
not sure about the size of your business, but if small ie. lets say you are a contractor
then very seriously get yourself out from the grip of the accountant,
i daily come across "contractors" in the building industry who have been lets say "suckered" by accountants,
people were rocking up to accountant with all beautiful ledger (receipts & invoices) ready for quarterly BAS, accountant said thankyou very much I will fill out form and send in, here is bill for $150,
i find the first step in the process of being caught by accountant is when they get all your ATO documents sent to their offices,
thanks
myla
I agree with doing your own BAS statements. I have just changed from Sole Trader to a Trust / Co. It's so confusing and I am so lost, I've had the Accountant do the last 2 BAS's for me and I need to be able to do them myself! Is there a forum, something I can read, a good website, anything to help me understand this structure better in relation to tax. (not property related info)
Thanks
Leah
Thanks
Leah
As an accountant, I hate doing BAS's for clients - its boring book work unless you are in one of those difficult GST areas of importing or partial exemption such as financial supplies.
My preferred method with all clients is to teach them how to do it and call me when somehting out of the ordinary comes up, such as a chattel mortgage. On the whole that works well for them and me.
My preferred method with all clients is to teach them how to do it and call me when somehting out of the ordinary comes up, such as a chattel mortgage. On the whole that works well for them and me.
BAS is very straight forward if you have straight forward deductions.
working out the GST on SD for business car repayments, the GST inside mortgage repayments working from home etc - all claimable to a certain % - all well worth the $150 lodgement fee.
working out the GST on SD for business car repayments, the GST inside mortgage repayments working from home etc - all claimable to a certain % - all well worth the $150 lodgement fee.
