Tips on Registering your Business for Tax
When it comes to setting up and running a business in Sydney you need to make sure you are correctly structured to remain compliant with the ATO.
Here is a handy check list of what you need to register your business for Tax:
1. Get a tax file number or TFN
- If you are a sole trader (trade in your own name) you can use your personal TFN
- For other business structures like partnerships, trading trusts and companies they need a separate TFN
2. Apply for an Australian Business Number (ABN)
- An ABN is required when you are invoicing other businesses for services or products provided. If you do not provide an ABN invoice, you could lose 46.5 per cent of the payment due to you as the ATO can withold this.
- Having an ABN makes it easier for trading so you can collect payments and calculate withholding taxes or GST.
3. Register for Goods and services tax (GST) registration
- Registering for GST is only compulsory if you know or expect your projected business revenue to be $75,000 each year and above,
- It will also allow you to provide taxi travel and also claim fuel tax credits if applicable
- If your turnover is below $75,000 then registering for GST is voluntary
- If your business need to pay wages/salaries, or has to make payments to directors or contractors then you need to register and pay withholding tax. This also applices if you need to withhold 46.5 per cent from those suppliers that have not porvides you with an ABN
- Its important to note that if you are a sole trader or partner drawing down is typically not a wage, so registering for PAYG may be required although advice should be sought from your tax agent or accountant
- If you plan to provide benefits to your employess such as a car lease then you need to register for fringe benefits tax
- You may also need to register for fuel tax credits if vehicles are leased or owned by your business
- and are only required if you use applicable approved fuel in your business.
4. Registering (PAYG) pay as you go withholding tax
5. Fringe benefits tax registration
If you want the best tax outcome in managing business and personal tax, you can?t beat professional tax accounting advice from someone who knows your situation and your business completely.
This is the the number one reason for having a good accountant or tax agent Sydney who can take care of all your accounting, tax returns and compliance.
Disclaimer: The information on this site is general in nature and not financial advice. Visitors should consider obtaining independent advice before making any financial decisions.