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PAYG & contracting, 2 jobs.
Hi everyone
I just want some advice on what to do with 2 types of work for the last financial year. I had a PAYG income for the first half of the financial year, then got mandated, then became a sole trader.
Im thinking I need to do a PAYG, then do an individual tax form separately for the contracting job?
Or
Could I possibly only do the PAYG and select “no” to a future return. Could it be that because I’m filling out the form this way and would have submitted something then I may not need to add the individual one? Or will that be considered non compliance as well?
as crazy as it sounds, I thought it was worth asking.
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This discussion was modified 2 years, 2 months ago by
Laura Adams.
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This discussion was modified 2 years, 2 months ago by
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17 Replies
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Are you working in the private as a sole trader or do you advertise publicly?
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Sorry in advance, I’m still learning. Well I don’t advertise because I just do home care and contract to a home care provider company so I don’t need to advertise, and my invoices say productivity of labour, but I’m charging a company that receives their funds from government funded home care packages.
haven’t done all the transaction processes or got a private trust yet though.
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This might help you.
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Thanks for your help Morag-Janet-of-the-hill-family 😊
I can still see a couple of scenarios:
- Don’t incriminate myself by adding my new contracting business to the tax return as I’ve never paid tax on it to start with, and have never done a return on it before because I started in Feb. I’ll be selecting no future return with my payg tax return anyway.
- Or if I leave it out, it may come under non-compliance? So in that case I add it as say $100 and keep the amount for both jobs under $18,200. Working the Payg down with receipts and costs.
I attached my contractor invoice. I If the layout is even relevant.
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Here’s some information from the Trust Q and A that might help
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Thank you.
these have been really helpful.
from what I have gathered so far, I have not yet got an unregistered trust, so I think I still have compliance obligations to the public realm especially since I have not selected the box to not lodge a future tax return. So, for this year I will need to add the productivity of my labor from my contracting job, along with the PAYG income I received.If I get an un-registered trust created now I can get paid directly into it from now on and just pay the contacting business accounts just to cover costs for bills etc, and I will have selected no future return now, so they won’t need to balance any amount to a future return.
The business account is all they will see making money and that will be well below the threshold anyway. happy days… if I’m making sense and I have that right? hahaOne more thing though. Do I fill in a PAYG tax return form, and Also an Individual tax return form. Then send them in together? I can’t put a PAYG and Individual earning together on the same form being different types of earnings?
Again, Thank you!!! I do really appreciate the help 🙂
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If you are declaring to the tax department, don’t refer to it as the productivity of your labour, instead you list expenses and this makes them non taxable. You call it productivity of your labour if they find money in your account and ask why it wasn’t declared as income. You refer to it as productivity of labour if the council ask questions as well. The tax department only have jurisdiction over income so you are either declaring income and/or expenses to them, expenses reduce the amount of tax you pay.
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Oh of course, that makes sense. I just watched the trust webinar and he did mention something like this too. So it only really if they ask. I just put it down as an expense when I do the PAYG form.
Thank you so much, I really appreciate this Morag-Janet-of-the-hill-family 😊
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Hi again. I’m back 😂
I have frozen my tfn. The company I work for just had a change in business structure and now wants us all to become employees instead of contact to him.
Just wondering how to go about this now I have set myself up not to do another return.
I remember Mark mentioning I can ask my boss if I can do my own tax but would I still need to lodge something next year. Just unsure how to go about this.
Someone I spoke to said I can just give him my frozen tfn. But that doesn’t make sense to me at all.
So frustrating haha
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I would notify them that you will take responsibility for your own finances and that you wish them to give you your pay in its entirety as you wish to handle your own financial affairs. Here’s some more info about the tax office. The taxpayers charter page 23 point 6 shows tax is voluntary. We have a wages Protection Act in NZ maybe you have something similar in Australia. I’ll share the NZ one here
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I take that section 6 page 23 as the cooperation is voluntary, not the tax obligation, maybe I am wrong but I have seen this mentioned a few times but I am not actually seeing anywhere it says that tax itself is voluntary. I think the wording is dubious.
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This reply was modified 2 years, 1 month ago by blarks.
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What is the difference between co-operating and paying tax?
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Yeah I see your point Morag, I still think the wording is dubious. The whole context of the paragraph is. I would be interested to hear what someone from the ATO would say when questioned about the meaning of that particular part. I mean surely you can just say to the ATO that I choose not to voluntarily pay tax, as it says right there that it is voluntary.
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They use words that seem ambiguous to confuse people and it works, it’s very hard to unwind their documents sometimes, I rely on Mark a lot because he has tried and tested his interpretations and methods.
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This reply was modified 2 years, 1 month ago by
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Honestly you have been amazing through this process. Thank you so much for this 😄
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Tax related question.
can you help answer this one at all?
My accountant froze my TFN and selected no return but sent it through online. I have to do an amended return to add the signature, all rights reserved, to the best of my knowledge. Mark mentioned the reason could be something like ” I did not fully agree with the accountants return” . Would it be a good idea to also add a cost so they don’t reject it? Say $20 more laundry. So its not just the signature added?
Do I need to bother putting all remuneration to agent if they already gave all my tax back? or just the signature details added.?
