complikated28

Im a Sales Coach employed by various companies throughout the year. I issue Tax Invoices to my clients. I have just the one bank account. As well as business expenses I pay my living expenses from this account and also take out cash for myself although I don't pay myself a wage as such. Does this money become my taxable income at the end of the year? Or am I supposed to have an Installment Rate and not pay Income Tax? Should I pay PAYG on this money instead??? ...I do a lot of preparation in my home office but teach the classes at the clients location. Where do i post my rent? Is a portion of it a bus expense? And my car? ......Hopelessly confused. Thanks..

missschlonky

Too many questions! You need a LOT of help with this. You have no choice but to consult with a tax accountant to have all your questions aswered in accordance with your individual circumstances. You might also need an experienced bookkeeper to put all your figures correctly into MYOB or Quickbooks.Your net income from business (that you are assessed to pay income tax on) will just be calculated as per your accounting records of business income received less business expenses paid during the tax year (if using the cash basis tax accounting method - which is usually done by small business and is a good idea if you can claim the Entrepeneur's Tax Offset).Note - a sole trader cannot be an employee of themselves. So you do not do PAYG withholding on your personal drawings from your bank account. What you withdraw from the bank is never wages, just drawings of your own money. Ask your tax accountant about PAYG instalment obligations which will arise after you lodge your first tax return with a business profit. In the meantime, set aside at least 25% of your income for Notice of Assessment tax payable after you lodge the tax return.Good luck