Did anyone else here go through the process earlier this week?
It seemed remarkably simple and there was no confirmation email/text that I received. Are we expecting a follow up to this? Surely that's not it right?
Jobkeeper - Sole Trader
mecusherb on 21/04/2020 - 11:05
Comments
Yeah fair enough.
I'll speak to my accountant when it comes around but I found a couple of days driving fruit and veg to get by which apparently won't effect it at all. So hopefully reporting is simply only via what you make with your ABN/Business. The FAQ section states this but I can never trust these schemes.
Yeah just be careful here, glad to hear you'll check with your accountant. You're allowed to earn an income but there are a few potential issues for a sole trader. Ie. using your ABN.
Yes but you only need to meet the test (i.e. 30% turnover) once
Does anyone know where to choose what turnover test to apply? I cant see a way to do this for the quarter, there wasnt any drop down or field to nominate this.
Reason being that my BAS is on a cash basis so I'd prefer to apply the quarterly turnover test - Im not making ANYTHING in April yet got paid last months invoice early April (when things were still good, and rougly equivalent to the previous year when I took 2 weeks off for Easter).
Havent seen anything either on nominating which test you want to select. I just put down April as the month revenue dropped and am hoping the May 4 reporting requirements will have something around the tests and what actually happened.
Maybe consider using Accruals basis for the tests; as that will only count invoices in April - not when money is paid.
Make sure you read the info carefully. If you are a sole trader and no other employees, you need to list it as 0 and 0 in the two fields
Almost certain I did this, there's no way to view your submitted form is there? The HUB is really shitty.
No way at all lol, I made that mistake. But I hear that when you report in monthly, you can change/update
Did anyone have any luck updating/ changes? I just submitted April and realised I entered incorrect April GST turnover and can't seem to make any changes.
I screwed up my figures too as I didn’t have them ready on hand and thought I might get timed out. But they’re not holding you to your input - I mean, how do you estimate total for May - who knows.
Presumably when you do your end of fin year BAS, they’ll compare to your chosen month/quarter.
My April was better than last year (ironically thanks to Covid related work) but I’m guessing May and especially June are going to be WAY down. And if not, I’ll happily pay back the Jobkeeper, but there’s no way it’s going to bounce back to 100%
Damn. I put in 1 and 1 in both fields. Its not really clear.
The rules are pretty simple.
- compare March 2019 to March 2020
- compare April 2019 to April 2020
- compare Apr-Jun 2019 to Apr-Jun 2020
Depending on how you do your BAS (Cash or Accrual) - if you use Cash, you can do the test on Cash or Accrual basis. If you use Accrual; the test must be done on Accrual basis.
You only need to qualify once.
The rules are simple but business is convoluted. I don't do GST for my business and income fluctuates throughout the year. So they've mentioned flexibility in testing but I'm sure this will only delay things.
Perfect example is a friend of mine probably earns 100k a year as a sole trader but had a baby in March last year. Made no income for many weeks, so there will have to be flexibility there.
Yes, for other scenarios; it would require asking for a ruling by the Tax Commissioner. For example, in the friend's scenario - maybe a Jan-Mar 2020 comparison with Apr - Jun 2020 may be more appropriate - but they will need to apply for that ruling.
Yeah, I'm in a similar scenario where i got a large contract paid around New Years last year so I didn't work that much through the next few months.
I'm sure it'll be fine but hopefully it's not a lot of hoop jumping, I gotta pay the RENT!
So can a husband and wife partnership in a business apply for this, no employees just us registered as business owners with abn.
Not sure about a partnership. For a non-employee business owner; only one person can apply for JobKeeper.
You can but only 1 person gets the payment.
^ This.
One applies for JobKeeper. The other needs to apply for JobSeeker.
Any Ozb accountants can comment - my wife started a business as a Sole Trader in Feb.
She has received payments from a provider based on a fortnightly basis can can show from the payments have dropped by at least 75% due to Covid-19.
Not registered for GST as it is under the threshold, and haven't lodged a BAS yet, as we were going to do it end of this FY.Based on the above will we have trouble proving turnover or eligibility?
https://www.ato.gov.au/General/JobKeeper-Payment/Sole-trader…I know when they first announced the program they said min of 12 months, but I believe they have since amended it for those who have in business less than 12 months - e.g.
https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/A…Hi, my wife in the same boat as yours. In this case they may ask non GST registered sole trader (hence no BAS) for proof of drop in income (e.g. invoice along with bank statement).
Thanks… let me know how you go, maybe we can compare notes. :)
You are out of luck unfortunately. Your wife would have had to lodge a 2019 income tax return showing the business income or BAS showing she made sales from 1 July 2018.
Source: https://www.ato.gov.au/general/jobkeeper-payment/sole-trader…
I’m hoping that second link in my post above is applicable to our situation:
https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/A…
Cases where an alternative turnover test may be appropriate include where the entity recently commenced a new business.
No this is in relation to calculating the decline in turnover test.
For a sole trader you would have to meet the above requirements.
@Westpac: Looks like they have expanded the rules - much more comprehensive now. Seems like the only requirement we haven't satisfied is the lodgement of a tax return or an activity statement on or before March 12 (she only business started in Feb).
One of the expanded rules is:
We have the discretion to give further time, but only in limited circumstances, including if you:
did not have a requirement to lodge your 2018-2019 return until after 12 March 2020Which I think might be applicable to us. Also under the alternative tests (section 6) there's a whole section on where a business commenced :
(b) if the entity started business before 1 March 2020, but on or after 1 February 2020, the entity’s current GST turnover before 1 March 2020, divided by the number of days the entity was in business and multiplied by 29.
Hopefully those provisions apply to us… do let me know if my understanding is incorrect.
Does anyone know if the Jobkeeper payment for Sole Traders will be included in taxable income at the end of the financial year? I'm not familiar with how government payments work
Jobkeeper payment is a taxable income
So i have set up the mygovID app and linked my business, what do i do now? Account wants $275 to do it.
I think that is literally it. This is why it seemed a litttttttle too easy.
Did you put in the details of which month your downturn started etc?
Linked your business ? Do you mean linked the ATO ?
Anyone else here lodged their return after 12 March? I use an accountant so was permitted to lodge up until May. I tried to enrol yesterday but couldn’t affirm the final declaration. Am absolutely eligible in every other way. Deadline is end of month for first payment with no way for me to submit the form?
Ask your accountant. He could enrol you also perhaps for a tax deductible fee.
Anyone got any money yet?
Still waiting here
I only did step 2 today, from reading seems a week from when you do that and get the 3 ticks.
Lodged (DIY) 11/05/2020 (Step Two) received into bank account 14/05/2020. (Partnership)
Yup, as simple as that.
On May 4; you need to update your Turnover numbers for April and every month after that