Small Business Tax: What to Expect and How to Pay
Dealing with personal taxes can be annoying for anyone. Unfortunately, if you are running a small business, you will also have to deal with business taxes as well. Knowing that these types of taxes fall into various categories, ensuring you keep up with your tax obligations can be exceptionally challenging.
That said, if you want to know more about what kind of small business taxes you apply to you and how you can ensure you satisfy all your obligations, keep on reading.
Small business tax obligations
As an Australian small business owner, there are many types of tax to consider.
The first would be the tax rates that adapt according to your business's turnover threshold. If your turnover goes over $10 million, you can expect to pay the full rate of about 30 per cent. On the other hand, if your turnover is less than $10 million, you will only have to pay approximately 27.5 per cent.
The second tax rate to consider is the assessable income tax. This income considers all the money you have made around the world, and they are all taken into account.
The third tax to remember is the goods and services tax (GST). This type of tax applies to the price of the products and services you offer. However, this tax is paid by the customer, as they pay a flat 10 per cent increase.
Note that there are some cases where you will not have to deal with GST. For example, a company that sells healthcare products does not have to pay such taxes, while a regular business that has a turnover amount of $75,000 and more within twelve months will have to. As such, do a little research to find out if you need to apply for GST.
There are many other taxes that you also need to think about, such as employee benefits tax, payroll tax, and more.
Paying for your tax obligations
If you know all your tax obligations, then paying for them is relatively easy. All that you need to do is save for them. How much you will have to save will depend on various factors, such as the size of your business and what taxes you will face.
As a general rule a thumb, approximately thirty per cent of your quarterly income should suffice in covering for all your taxes. If you want something more accurate, you can work with a tax return service provider. They will help you calculate exactly what you need, allowing you to plan your budget and ensure all your obligations are covered.
Taxes are a hassle, but you have to do them. Fortunately, once you are well aware of your tax obligations and have set plans to afford them, covering your taxes should not be too much trouble.
If you are facing some issues, then do not hesitate to reach out to accounting services providers! They will assist you in all things financial, from creating the necessary documents to calculating your taxes. They will ensure that you maintain control over your finances, that all your tax obligations are paid for to keep you away from legal trouble.
We provide end-to-end accounting and bookkeeping services to help small businesses scale up and grow. If you are looking for small business accountants in Gold Coast, contact us today!