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B's Withholdings

February 18th, 2015 at 12:29 am

My husband B is self-employed so it is important to keep up to date with his tax Withholdings in order to avoid being in a world of financial pain when it's time to lodge the tax return!

We had money problems while he was off work but now he is back working and we are recovering, he has a lot of work at the moment.

Now that we have money again a friend has offered to sell him a camper trailer for $2000 which is in pretty good condition and would be a valuable purchase for us, we would get a lot of use out of it. I told him I would let him know this week if we are able to get it.

The Australian tax year starts on July 1 and ends June 30. The way I look at his tax is to pay instalments towards his tax as the government advises for the first half of the year, and then between months 6 & 8 start looking at his profit & loss to see have we paid enough tax? If not, we have a few months to get things back in order by year end. (If he was making way more money than usual I would be checking earlier).

So I had the family banker hat on this week and have found that he is doing ok. He hasn't earned much this year ($27000 so far), tax payable is $1300, tax we have paid is $1700. So it works out I have over saved for tax so we can use that money to buy the camper trailer. It's nice to know that we're on track and won't get any nasty surprises in the form of big tax bills. Really hoping B will make a taxable income of over $40000 by year end (which will be an improvement on the $37000 he earned the year before).

Oh, and once I start checking at months 6-8, I continually check at the end of each month to keep a clear picture of where he's at. (As a salaried employee I don't need to do this for myself, there's not a lot to report and tax is withheld at the right level).

3 Responses to “B's Withholdings”

  1. snafu Says:

    I've no idea about DH's self employment but I wonder if he can use the camper in any way that relates to his work for any period of time. If he carries supplies or uses it as a portable office to meet clients on site the portion of time including transportation becomes eligible for a tax deduction. That includes a percentage of registration, licensing, maintenance, parking etc. It certainly helps with tax deductions against earned employment income and the business pays a realistic percentage of the cost of the camper.

    It might not be a substantial sum but I see it as every little bit helps.

  2. creditcardfree Says:

    I'm about to check on my husband's withholding. With a raise, I'm pretty sure we need to adjust.

  3. VS_ozgirl Says:

    He generally works for new homes construction companies within a 30km radius so probably would not apply. Thanks for your advice though

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