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Sole Trader working with ABN
Good Day Ladies and Gentlemen!
I’ve got a quick question for anyone who could shed some light on, or give me some confirmation in regards to working as a sole trader with a non registered trust – as below –
I’m working for a single company (under an ABN as a contracting sole trader) performing long term work, invoicing every week. Currently i’m invoicing the company and being paid into my personal account, but have previously signed a “terms of engagement agreement” on behalf of myself as the sole trader with the trustee of the non-registered trust to perform work on behalf of the trust and as a result the trust will invoice me weekly for their “management” fee (for planning and sourcing the weekly work etc). I am currently registered for and charging GST to the client, doing everything required as a normal sole trader making above $75,000 P.A but – most of the “income” will end up as expenses at tax time resulting in a negligible tax liability to me personally as 2/3 is paid into the trust, leaving only an amount required to pay for operational costs etc…
My question is – Does anyone have an easier way? The company requires me to have an ABN so i have considered this process to be the best for my situation. The process i’m using obviously starts in the Public which is something i would rather avoid to basically avoid the explanation that i’m sure will arise eventually. I’m sure there are other people out there considering or doing something similar to me and i would love to have a discussion about results. Can you nominate payments to go straight into the trust account instead on your original invoice to said client? or is it likely this will be flagged as the client your working for will be claiming GST on their end and there will be some sort of unbalance that will set eyes on you?. The company has advised that they are open to working with me irrespective of if i charge GST or not, though the ABN will still be necessary, is there a process in which i could work on behalf of the trust and the invoice could reflect that instead of double handling it? I haven’t quite found the answer scowering through some of the Q and A’s so i thought i’d create a discussion here and see if anyone has been through this process as well.
Any information would be greatly appreciated.
Thanks brothers and sisters!
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This discussion was modified 2 years, 3 months ago by
BearishDiv.
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This discussion was modified 2 years, 3 months ago by
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6 Replies
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I should probably revise that to long question.
😊
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Hi Morag.
Can you please tell me when you get all the documentation that you share?
Is it all contained in the website?
Thanks
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Most of it is contained within solutions empowerment. I have been on here for three years gathering information. I also do my own research. SE has changed it’s website a couple of times since I joined and so some of the material I have is no longer available. I have spent three years listening to webinars, buying modules and resources, transcribing webinars and Q and As and copying and pasting members comments. If you study on here you will learn everything that you need to and if you gather data you too will have a reservoir of information. I never share the material from the modules as they need to be paid for but I do tell members what they can expect to find in a module if they need to know. I share what I see in the webinars and other members comments and information I have found in my own research effort. I put the material from all of that in the appropriate folders in my records.
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OK thank you for that information.
I’also a member of knowyourrightsgroup.im looking at setting up a foundation for tax purposes.is that something that s.e. also offers and would you recommend that for a sole trader such as myself.
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Hi there is a guy who does that who Mark recommends and he has been setting up foundations for years and his foundations have stood the test of time. Here’s the webinar that deals with that subject and has Peter Duff (the creator of the foundations) as the guest speaker https://solutionsempowerment.org/webinar-guest-speaker-peter-duff-foundations/
solutionsempowerment.org
Access Restricted (Not an Active Member) – SolutionsEmpowerment.org
Access Restricted (Not an Active Member) – SolutionsEmpowerment.org
