Sole Trader Tax Return Accountant

As a general guide, a sole trader can generally claim expenses that directly relate to earning their business income — things like materials, tools, software subscriptions, motor vehicle running costs for work travel, and a portion of home-running costs where part of the home is used for the business. Two conditions usually matter: the expense must relate to earning your assessable income rather than being private, and you generally need records to substantiate it. What is deductible, and to what extent, depends on your circumstances and the relevant rules, so we review each claim rather than applying a blanket assumption.

In general terms, GST registration becomes compulsory once your business turnover reaches the $75,000 threshold (measured over a rolling twelve-month period), and is otherwise optional below that level. Some industries have their own rules, and there can be reasons to register voluntarily before reaching the threshold. Whether and when you should register depends on your circumstances and the relevant rules, so we look at your turnover trajectory and the practical effect on your pricing and cashflow as part of the engagement.

Typically the engagement covers the business schedule within your individual income tax return — business income, the expenses and depreciation that relate to earning it — together with the rest of your individual return, so your salary, investment income and personal deductions are all reflected in one place. Where relevant we coordinate the GST/BAS position and any PAYG instalments, and we review superannuation for the self-employed. The exact scope depends on your situation, and a fixed fee covering that scope is confirmed in writing before work starts.

As a general matter, once a sole trader starts reporting business profit, the ATO can bring them into the PAYG instalments system — pre-paying tax on business income in quarterly (sometimes annual) instalments rather than in one lump sum after lodgement. The instalment amount is generally based on either the ATO-issued figure or a rate applied to your actual income, and it is credited against your final assessment. How the system applies to you, and which option suits your cashflow, depends on your circumstances and the relevant rules, so we walk through it rather than leaving the first notice as a surprise.

Our role here is the accounting: we prepare the sole trader returns and financials that self-employed borrowers are usually asked to provide, prepared accurately and on time, which is what lenders rely on. This is not a sales pitch and the two engagements are kept separate. If a self-employed home loan also happens to be on your agenda, the same practitioner can scope that conversation separately and on its own merits — see Self-employed home loans for how that works.

Fees depend on the condition of your records, whether you are GST-registered, the number of income streams and whether there are vehicle, home-office or depreciation claims to work through. We quote a fixed fee in writing, scoped to your situation, after a short scoping call. There is no standard dollar figure because every sole trader differs.

Not always. Where deductible business expenses exceed business income there is a loss, and in some cases that loss can be offset against your other income such as salary — but the non-commercial loss rules can defer the loss to a future year unless the business meets one of the relevant tests, or an exception applies. Whether a loss can be used this year, or is carried forward, depends on your circumstances and the rules for the relevant income year, so we test the position rather than assuming the loss is immediately deductible.