On Thu, 21 Sep 2006 18:25:10 +1000
DaZZa <[EMAIL PROTECTED]> wrote:
> On 9/21/06, Rev Simon Rumble <[EMAIL PROTECTED]> wrote:
> > Hi folks.
> >
> > I'm about to start contracting and it seems it's a lot more
> > efficient to have things wrapped into a company. I've been looking
> > around and seeing stuff about the "80/20 rule" and the like, which
> > determines whether you can apply company tax instead of personal
> > income tax, and other stuff.
> >
> > So does anyone out there have any (IANAA) advice on such things?
> > Any recommendations of accountants to get advice from? Ideally
> > accountants who can deal with free-software ledger systems...
>
> IANAA, but I've been there.
>
<SNIP>
>
> There are advantages - you can buy a lot of "business related" stuff
> and pay for it pre-tax - saving you loads in tax - but you have to be
> careful that the stuff is related to the industry you're in, or
> genuinely necessary for your business. Again - talk to an accountant
> about stuff you can do - for example, if you work from home, determine
> a percentage of your rent/mortgage that is used by your business
> {space, time, electricity etc} and pay for that from the business,
> pre-tax.
Caution on claiming the home office - It may mean that a part of your
home will be subject to capital gains when you decide to sell.
Talk to an accountant :-)
>
> Did I mention you should talk to an accountant? :-)
>
> OK, enough off-topic wafle. Talk to an accountant, OK?
>
> DaZZa
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