self employment and PAYG, just about to start trading - confused

[Guest libbysmum]

 

OK need a bit of guidance if possible, we arrived about 3 weeks ago and have been so busy since!

 

My OH is about to open a barber shop, being self employed, working on his own.

 

We have applied for our TFN's

 

How do we go about registering to pay income tax, going around in circles on the ATO websites. He has not applied for an ABN, as initially at least this won't be necessary as not likely to hit the GST threshold for a while. I have read that you can pay PAYG contributions on a quarterly basis, based on his actual income, but i can't find how to register to make payments.

 

Is this something he needs to do now, or in 3 months time, or at end of financial year?

 

Also i have noticed you can apply for a business TFN, would this be something he would have to do in addition to his individual TFN?

 

Sooo confused

Sarah

[ian mc]

Not 100% sure on this one but here goes I think he needs to have an ABN he does not have to register for GST untill he hits a certain amount.I have an ABN and registerd for GST I pay my PAYG every 3 months along with my BAS all on the one form.If you do not register for GST you will just do your tax return at the end of the year and that will include all your taxes. There is no need to do PAYG untill the ATO tell you.

[Guest Matey2]

I agree with Ian.

 

You MUST get an ABN to trade as a business - rather than a sole trader. Simply register online and do not select register for GST.

 

I am wondering why you would not register for GST? I would say that you could significantly reduce your set up costs as the GST is refundable on any of your expenses and the quarterly return is not difficult to complete. You do not need an accountant to do any of it for you.

[Guest libbysmum]

In terms of GST, from what I have researched you must have a turnover of $75000 to be able to register? Or is it that it becomes compulsory after $75000, and if turnover is less GST is optional? My other half probably wont hit that threshold at least for this first year or so.

 

I'm not sure how much of an advantage GST registration would be initially as in terms of expenses we will only have the rental of the unit, and associated costs e.g. electricity. Apart from having to replace the odd set of clippers, scissors, etc there won't be any other expense.

 

We have kept set up costs really low too, sourcing the mirror, benchtop, furniture etc from salvage and private second hand sales. Our only large initial outlays are going to be flooring, signage, the purchase of the barber chair, and advertisment which should total less then $2500.

 

Again it's a bit mind boggling as we dont really know what would suit best. Have thought about getting an assistance visit from the ATO, but not sure what the waiting times are on this.

[Andrew from Vista Financial]

In terms of GST, from what I have researched you must have a turnover of $75000 to be able to register? Or is it that it becomes compulsory after $75000, and if turnover is less GST is optional? My other half probably wont hit that threshold at least for this first year or so.

 

I'm not sure how much of an advantage GST registration would be initially as in terms of expenses we will only have the rental of the unit, and associated costs e.g. electricity. Apart from having to replace the odd set of clippers, scissors, etc there won't be any other expense.

 

We have kept set up costs really low too, sourcing the mirror, benchtop, furniture etc from salvage and private second hand sales. Our only large initial outlays are going to be flooring, signage, the purchase of the barber chair, and advertisment which should total less then $2500.

 

Again it's a bit mind boggling as we dont really know what would suit best. Have thought about getting an assistance visit from the ATO, but not sure what the waiting times are on this.

 

 

Hi Sarah

 

I would recommend going to talk to an Accountant that advises in this area.

 

There may be a number of options open to you and it would be wise to understand what these are and to ensure that you set up the structure correctly from the word go.

 

 

 

Regards

 

Andy

[JHN5]

Hi Sarah

 

I've just come across your post.

 

Hopefully you've had some guidance but I thought I'd copy and paste this link which I have found really useful.

 

http://www.sa.gov.au/subject/business,+industry+and+trade/Starting+and+managing+a+business/Starting+a+business

 

It is written very well and takes you through the steps you need to follow.

 

Also I don't know if you have heard of ISBEC they are based in South Road and have a few other offices around the area. They support businesses and start ups. Might be worth giving them a call.

 

Hope you find some help.

 

Laurie

 

 

OK need a bit of guidance if possible, we arrived about 3 weeks ago and have been so busy since!

 

My OH is about to open a barber shop, being self employed, working on his own.

 

We have applied for our TFN's

 

How do we go about registering to pay income tax, going around in circles on the ATO websites. He has not applied for an ABN, as initially at least this won't be necessary as not likely to hit the GST threshold for a while. I have read that you can pay PAYG contributions on a quarterly basis, based on his actual income, but i can't find how to register to make payments.

 

Is this something he needs to do now, or in 3 months time, or at end of financial year?

 

Also i have noticed you can apply for a business TFN, would this be something he would have to do in addition to his individual TFN?

 

Sooo confused

Sarah