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Category: Tax
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My husband was self-employed as a handyman and we ran our business

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My husband was self-employed as a handyman and we ran our business as a partnership (he did the manual work I ran the office) for 30 years. We closed the business 5 years ago and he worked for a firm. Since July, he has recommenced his self employment and he started doing it as a sole trader. We now find out that he cannot pay me a wage for doing office work for him. Should we go back into a partnership as we did previously? The ATO are no help at all.Are we able to go back to a partnership situation.
Submitted: 5 years ago.
Category: Tax
Expert:  cliffdweller15 replied 5 years ago.

cliffdweller15 : Practical answers from a 40 year experienced qualified Professional with former tax officer knowledge.In practice this is the easiest way to skin the cat. Just go and rEactivate your old abn you can search for this on the net under the ABR australian business register site and then start up using it. You will need to use your old tfn as well. In this way you go back to where you were. Remember to get your stationery right showing you both and bank monies into a joint account. For the time he worked as a sole trader you will need to lodge a bas and in future periods for 2012 just nil return. If not lodging and paying gst then no problem
cliffdweller15 : Any other queries get back to me

Thanks, XXXXX XXXXX what I thought and it would definitely be less hassle. Yes our partnership name is XXXXX XXXXX the site. We changed because people have told us that you can no longer have a husband, wife partnership - Do you know of any reason why the Tax Department would not approve it?

cliffdweller15 :

You must always be wary of what people say I have been doing this for 40 years and am still amazed at the so called experts out there who read something in the paper and think its gospel - if you are doing the books and are registered as an owner and doing the running around and helping out - you are entitled to be in partnership. You just need to be careful about how you set yourself up keep a diary of the time you spend doing the books picking up supplies doing the banking etc for 12 weeks while you do your vehicle logbook. I have always found it harder to justify being employed in your situation. Any problems going forward you know where i am and don't hesitate to come back to me

cliffdweller15 :

Don't forget to accept my answer so it clears my online file. You can always request me if you need further help


Thankyou so much, I will definitely contact you if I need more advise

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