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Re: Sole Trader Zero Income - How to complete Tax Return

Newbie

Views 107

Replies 1

Hi ATO,

 

I signed up for an ABN earlier this year as a Sole Trader to setup a martial arts hall. Due to multiple factors such as COVID restrictions I have not made any revenue, only losses from setting up the business such as public liability insurance and some equipment. I can see based off previous questions that I still need to lodge a Tax Return since I had an ABN. However, I'm unsure how to answer the questions; is there a clear guide on how to answer questions as a Sole Trader if you made no revenue? 

 

For example the very first question "Did you receive any personal services income?" Technically the answer is no however that takes away my option to then fillout any other details regarding my business.

 

Another question is "Did you receive 80% or more of your PSI from one source?", again technically no because I made no PSI. 

 

Thanks and regards,

Mitch 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Mitchell1997,

 

When you lodge your tax return through myGov in myTax, at the start of the lodgement it asks you to personalise your tax return by ticking the boxes for the categories that apply to you.

 

For example under the "income section" you would not tick the box stating " Sole trader or business income" as, even though you had an ABN you had not made any income from it.

 

By doing this, you have met your obligation to lodge because you have an ABN and at the same told us that you have not had any business income.

 

You can carry forward any losses against your business income in future years without the need to report them in this tax return.

 

 

 

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Mitchell1997,

 

When you lodge your tax return through myGov in myTax, at the start of the lodgement it asks you to personalise your tax return by ticking the boxes for the categories that apply to you.

 

For example under the "income section" you would not tick the box stating " Sole trader or business income" as, even though you had an ABN you had not made any income from it.

 

By doing this, you have met your obligation to lodge because you have an ABN and at the same told us that you have not had any business income.

 

You can carry forward any losses against your business income in future years without the need to report them in this tax return.