More tax questions?what is ABN?

Question

Ok, if you are employed you have a tax file number and your employer withholds the tax and sends it to the government now you are not employed and you have a buisness for example you sell books so you have an ABN number so how government can calculate how much you earn and how your tax gets to the government....you have a tax file number and you give it to your employer but if you have ABN how do that work?

Answer 1

Australian Business Number - if you're a registered business you must have an ABN

Answer 2

you give the taxation department 10% of what you make

JUST GO TO THE ATO web site is has all the answers for you

as what people tell you dont seem to sink in look here

http://www.ato.gov.au/default.asp?menu=5...

Answer 3

In a very basic answer, for a small business:

During the Year you calculate any GST payments to the Tax office "IF" you are registered for GST.  (With a turnover of under $75,000 per year you do NOT need to register for GST.)  The amount you pay is the total of GST that you have collected, less the GST you have paid to others.

At the end of the year, you then do your annual accounts, and work out how much Income tax you then have to pay.

It is often best to get a Tax Accountant to do this for you.

If you are an employee AND have a small business,(not PTY LTD) then everything has to be added together, at the end of the year in your tax return.