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24 June
2016
ATO NEWS AND UPDATES FREQUENTLY ASKED QUESTIONS SMALL BUSINESS TOPICS
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Has my Hobby, become a Business?

A hobby is an outside interest that you pursue for fun in your spare time.

Hobbies are fantastic to have because they give you an outlet to do something of interest, outside of your regular occupation and may even be relaxing.  Like anything in our lives, when we enjoy the activity and are passionate about it, they can often turn into a successful business.

 

Ask yourself these questions to decide if your hobby has morphed into a business.

  • Do you have a reputation? People in your industry or region may be taking notice of the product or service you are selling
  • Are you getting more orders than I can fill? If you are receiving more orders/service requests than you can fulfill in your down time.
  • You are making a profit or do you expect to make one in the future?
  • Are you organised?
  • Are you thinking beyond individual sales and are considering renting a shop?

How do I know if I am in business and should be taxed?

The following are some factors that can show if your activity is a business (for tax purposes):

  • Your activity is organised & commercial in nature
  • You are engaging in business activities and events.
  • You have the purpose and a prospect of profit.
  • Your activity is repetitious and regular.
  • Is you bank account steadily growing and earning more each month?

Once you have established the answers from the above….

CLICK ON this ATO link HERE

 

 

WHAT NOW?

Ensure from now on that you :

  • File all your receipts
  • Use software or “app” to record your earnings
  • Keep an eye on your turnover
  • See your accountant if $75000 or more

 

How do I register the business?

  • You will need to file for a Tax File Number (TFN)
  • You will need to apply for a Australian Business Number (ABN)
  • If you earn over $75,000 or more you will need to register for Goods and Services Tax (GST)

 

 

Please join our FREE newletter subscription for practical bookkeeping tips, links, ATO news and FREE webinars!

Sign up at http://eepurl.com/wUPpP

 

Amanda Hoffmann is a registered BAS Agent No.18613005, Associate of Finance, Xero Certified, Myob Essentials and Quickbooks partner.

She says she is more than just a bookkeeper with experience in real estate investing, social media, podcasting and blogging.

Amanda loves to teach smart, easy online cloud solutions and can show you how much fun bookkeeping can be. Follow her on social media and say “Hi”



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