Tax Return Question - PSI as Sole Trader

LDeridas on 03/06/2015 - 23:57

Hi all,

With the end of financial year coming soon, I have a question which I can't seem to find the answer anywhere online (and my tax so far is simple enough without the need for an accountant).

I have a regular job paying PAYG tax, and this year in addition I have set up an ABN doing small jobs as a contractor (earning personal services income). I will be performing the work and invoicing some of my clients in June, but likely only paid in July.

The question is, do I include the income I make in this scenario in the '14/'15 tax return (given that the invoice was dated in June), or '15/'16 tax return (given that the money actually lands in my account in July)?

Thanks for your help.

Financial

Related Stores

Australian Taxation Office
Australian Taxation Office

Comments

  • jackofspade on 04/06/2015 - 00:34

    Next financial year 15/16.

  • scotty on 04/06/2015 - 10:45
    +5

    If you set up your business on cash rather than accrual basis, then it only counts as "income" when it appears in your bank (rather than when the invoice is issued). Therefore 15/16 financial year in your case. Check your BAS on how your business was set up, although with sole trader and most small business I suspect would be on cash basis.

  • Deridas on 04/06/2015 - 11:30

    Hi jackofspade and scotty,

    Thanks so much for your advice.
    It is a cash basis.

    Cheers~ :)

Login or Join to leave a comment
Login Join