Sole Merchant Income Tax Return

A sole merchant is a personal running a business. It’s the only and most cost-effective business structure. You the sole owner and you management and manage the business. You’re wrongfully to blame for all aspects of the business. Debts and losses can’t be shared with different people.

As a sole merchant, you have got the subsequent rights and obligations:

  • use your individual tax file variety once lodging your revenue enhancement come
  • report all of your financial gain in your individual income tax return, victimisation the section for business things to point out your business financial gain and expenses (there isn't any separate business income tax return for sole traders)
  • apply for Associate in Nursing ABN and use your ABN for all of your business dealings
  • register for product and Services Tax (GST) if your annual GST turnover is $75,000 or a lot of
  • pay tax at constant revenue enhancement rates as individual taxpayers and you'll be eligible for the little business tax offset
  • forgot cash to pay your revenue enhancement at the tip of the year - sometimes, you'll do that by paying quarterly Pay As You Go (PAYG) instalments
  • claim a deduction for any personal super contributions you create when notifying your fund.

As a sole merchant you can’t claim deductions for cash ‘drawn’ from the business. Amounts taken from the business don’t seem to be wages for tax functions, notwithstanding you think that of them as wages.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au