How to estimate your tax bill

Straight Up Small Business

Do you approach tax time dreading being in the dark about how much tax you might have to pay? Fear not, today’s short and sharp episode will help you estimate your own tax payable come tax time without having to rely on your bookkeeper or tax accountant to help you do that.

This is an estimation, as there will always be adjustments that get made when submitting your tax return (which I run through as well). But there is no reason for you to be in the dark about much tax you have to pay if you know these tips.

There are different considerations according to whether you’re an employee, sole trader, in a partnership or have a company business structure. I take you through each of these considerations as well as a run-through of the ATO’s individual income tax rates.

I give an overview on:

• The reasons why you should have minimal tax payable if you’re an employee
• How you are taxed as a sole trader
• Why having your bookkeeping up to date is important in order to estimate your tax payable as a business
• How to calculate your tax payable based on the five ATO tax brackets.
• How tax is calculated for partnership businesses
• The company tax rate and how to calculate the tax payable if own a business that’s a company

Good tax accountants are worth their weight in gold when they do your tax return and get you a great outcome. But there is no reason to go through your business life clueless about your taxes. Armed with knowledge of the personal and company tax rates, I encourage you to have a go at doing this in your own business or life this year.

LINKS:

Bookkeeping It Real Mentoring Program - waitlist
ATO - Individual income tax rates
Register your interest in the Bookkeeping it Real Mentoring Program here.
Check out my course Bookkeeping it Real here!

Where to Find Bec:

• Website:https://straightupbookkeeping.com.au/
• Instagram: @straightup_bookkeeping
• Facebook: @straightupbookkeeping
• LinkedIn: @straight-up-bookkeeping