atw: Re: Umbrella companies - long - maybe OT for you
- From: Terry D <morgan4four@xxxxxxxxxxxx>
- To: austechwriter@xxxxxxxxxxxxx
- Date: Thu, 9 Jun 2005 14:35:09 +1000 (EST)
I love to say "I hate to disagree", but I'd be lying.
The only reason you should consider setting up a
company is if it gives you advantages in obtaining
work. Like the financial advisers say of real estate
investment, don't do it just for the tax breaks.
I think there are very few tax advantages to having a
company these day--and if you think there are, I'd say
you should be nervous if you get audited.
I have been working through my own company for 15
years and the paperwork effort, when compared to being
an employee, is quite onerous.
It can be simple things like getting a warning from
the tax office regarding group certificates. Certain
that I'd done nothing wrong, I spent around two hours
on the phone (because the first two times I had to
hang up after about 30 minutes in the queue!) to find
out it was a 'computer error'.
If you time your holidays poorly and miss a due date
for super or BAS, it hits the fan again. I missed a
super payment by two days. For that I had to pay a
penalty of a fixed fee plus 10% of the super bill for
the whole year for all staff.
I know there are plenty of people out there who claim
their travel from home (office) to workplace as one of
the main benefits. I believe the ATO frowns on this
and I never have. Possibly my loss, but there again, I
want good policing, education, roads...
But, yes, I do think having to pay close to $40k per
year in tax through the company is also wrong--on what
I get as a personal income.
FBT has captured most of the other previously
available benefits.
Apart from all that, I think it's stupid to pay ASIC
and your accountant $1500 to save $1500 tax. I'm sure
the government would provide better community services
with the money than your accountant does.
My $40k's worth,
Terry
Send instant messages to your online friends http://au.messenger.yahoo.com
**************************************************
To post a message to austechwriter, send the message to
austechwriter@xxxxxxxxxxxxxx
To subscribe to austechwriter, send a message to
austechwriter-request@xxxxxxxxxxxxx with "subscribe" in the Subject field.
To unsubscribe, send a message to austechwriter-request@xxxxxxxxxxxxx with
"unsubscribe" in the Subject field.
To search the austechwriter archives, go to
www.freelists.org/archives/austechwriter
To contact the list administrator, send a message to
austechwriter-admins@xxxxxxxxxxxxx
**************************************************
Other related posts:
