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Hi Jenny,
I run a contracting company.
When I only sell product to my clients and not materials and services. What should I expect to pay regards to tax?
My partner seems to think that I would be paying more tax overall when I offer just materials.
I am a sole trader under a trust.
Thanks
Col
Responses
Hi Col,
Firstly, what is your structure, as you cannot be a sole trader under a trust. You are either a sole trader, or a trust (and you receive distributions from that trust). If you are not sure, you can send across your ABN (the one on your invoices), and we can look it up for you.
The tax payable calculated on your net profit, and whether you sell products VS materials and services is irrelevant to the tax calculation.
It would be a good idea to:
1. See if you are in the right structure first
2. Discuss in more detail regarding your partner's comments, as on surface, it is incorrect.
If you would like to have a chat, please feel to contact me directly below.
Kind regards,
Jenny Thai
JTR & Associates
Email: jenny@jtrandassoc.com.au
Phone: 02 9144 3180
Website: www.jtrandassoc.com.au
Thanks jenny for your fast reply.
Sorry my question was a bit rushed.
I will think about your answer and follow up should I need further clarification.
Kind Regards,
Col
Hi Col
You are most welcome. I am happy to have a look at your structure at the very least, at no charge, just so that you know exactly what sort of structure you are in.
Your structure can help to determine if there are any tax planning options to you, to ensure you pay the least amount of tax possible (legitimately).
Kind regards,
Jenny Thai
JTR & ASSOCIATES