Company help with tax

[Dolby]

First off, I'm not too clued up on tax.

But I buy / sell lots of equipment someone said that opening a company may work out for me and using as my 'trade platform'? Claim a percentage of the house, ADSL etc ?

That's right ?

 

[RanzB]

First off, I'm not too clued up on tax.

But I buy / sell lots of equipment someone said that opening a company may work out for me and using as my 'trade platform'? Claim a percentage of the house, ADSL etc ?

That's right ?

You could still claim a lot of those as expenses if you're a Sole Prop, afaik.

 

[bigboy529]

In which area are you, I can give you the details of an accountant who can help you with your tax things, his rates is very reasonable.

 

[airborne]

You could still claim a lot of those as expenses if you're a Sole Prop, afaik.

This is true, expenses are expenses, Pty is more in terms of liability and the way profits are paid out and subsequently taxed.

 

[Cpt.Underpants]

Opening a company is usually a lot better for tax purposes depending on the taxable income of the business. As a sole proprietor the income is included in your personal tax which increases significantly.

You can claim a percentage of your house expenses for business based on usage for business or floor area as a sole proprietor, not just as a company.

Just note that if you use a company, it will be taxed at 28% and when you wish to distribute profits, there is another 20% dividends tax on the distribution. The benefit for a small business would be the small business corporation tax rates, which is a sliding scale that depends on your taxable income (usually similar to your profits).