Income Tax Advice

Income tax is levied on taxable income. Taxable income is calculated by using the following formula; assessable income less any allowable deductions. Deductions include such things as wages, the cost of stock, rent, bad debts, and previous year losses.

Sole traders are not required to complete a separate return for their business – they use their personal income tax return to report their business income and deductions.

Partnerships complete a partnership tax return to show the partnership’s income and deductions, and how the profit or loss was shared among the partners.

Companies complete a company tax return to calculate the income tax the company should pay.

Sole Traders
Partnerships
Companies