Sole Trader Tax

What is a Sole Trader?

A sole trader is an individual running a business. It is the simplest and cheapest business structure. If you operate your business as a sole trader, you are the only owner and you control and manage the business. You are legally responsible for all aspects of the business. Debts and losses can’t be shared with other individuals. You can employ workers in your business, but you can’t employ yourself. As a sole trader, you are responsible for paying your worker’s super. You’re also responsible for your own super and may choose to pay it into a fund for yourself to help save for your retirement.

Sole Traders do not need to lodge a dedicated seperate tax return each year. Instead, a business schedule must be included within the personal tax return. This aspect is a common source of confusion among new sole traders. Your sole trader business schedule is essentially a list of your total business income for the financial year along with your expenses by category.

How we can help

Freshwater Taxation assist hundreds of sole traders each year. Regardless of if you are just starting out or have been established for many years, we guarantee to provide you with an extremely thorough service. We make your business our business! If you are starting out as a sole trader and unsure of the next steps, head over to our business setups page and download our free step-by-step guide.

When we prepare the personal tax return for a sole trader each year, we do so much more than just “crunch the numbers.” We also conduct a thorough review to ensure that you are running in the most suitable business structure to suit your overall circumstances.