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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15606
Experience:  15years with H & R Block. Divisional leader, Instructor
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I currently work a full time job in admin and I have

Customer Question

Hello I currently work a full time job in admin and I have just completed a nail course at TAFE and about to start a makeup course. I want to start a small side home business and was wondering if it was worth me getting an ABN? Was also wondering if I did get an ABN, would I be able to claim my TAFE courses?
Submitted: 2 years ago.
Category: Tax
Expert:  Robin D. replied 2 years ago.
Hello,You are not required to have an ABN yet, but having an ABN gives your business the ability to claim back goods and services tax. If your turnover is more than $75,000 a year (before GST), you are required to register for GST anyway, and to do that you need an ABN.Your current employment and the course you undertake must have sufficient connection for your self-education expenses to qualify as a work-related tax deduction. If a course of study is too general in terms of your current income-earning activities, the necessary connection between the self-education expense and your income-earning activity does not exist.Just having the ABN would not guarantee you the TAFE expense as a deduction. If you were active in your business then the makeup course may be a part of the home business (with or without the ABN) and that cost may be deductible.
Customer: replied 2 years ago.
i don't understand why I don't need an Abn yet? My courses will only relate to my home business so are you saying I can maybe claim them without an Abn?
Expert:  Robin D. replied 2 years ago.
You cannot claim them unless you are taking courses that relate directly to your present work. The ABN does not by itself show you are in the business that requires you have this nail course.If you were actively in business then the course would be something required. You cannot claim a course that is not something needed for what you are presently doing.
Customer: replied 2 years ago.
But I am already actively doing nails? As I am charging people for my services?
Expert:  Robin D. replied 2 years ago.
Then you do not have to have the ABN to claim the courses. From your post I was understanding that you were not yet doing this business ("I want to start a small side home business").You are not required to have the ABN but you may want to go ahead and get it so you can claim back GST. As GST is paid by the consumer, not businesses, you can claim back any GST you have paid for things that you have bought for your business.You can claim the courses because you are in that business and the course would be directly related.
Customer: replied 2 years ago.
so what you are saying is that I don't need an ABn to claim my courses but I need one to claim things that I have brought for the business. Is that correct?
Expert:  Robin D. replied 2 years ago.
Yes, that is correct
Expert:  Robin D. replied 2 years ago.

Wanted to touch base with you and make sure all worked out and to thank you in advance for your positive rating.