Personal services income and capex

Hi all

I do a little bookkeeping a couple of days a month from home and I was wondering firstly if it is PSI or I am personal services business= the ato site is a little confusing but seems to suggest I am a personal services business...

I work for one client(only) 2 days a month
I provide my own tools(use of home as office and laptop/software etc)
I have to correct any defective work
I deliver a set objective every month(ie monthly reports)


My question is how does being a PSB differ from PSI and secondly i am considering a very expensive office chair purchase will I be able to claim the capital allowances/depreciation and also the investment tax credit for this (if enshrined in law)? I work from my spare bedroom which is a unused bedroom/home office I also use the office to work from home occasionally.

Are there any other costs I should be claiming?

Any help is greatly appreciated.

Thanks

R.

 

It really doesn't matter.

The net income from the business will be taxed in your name if you are registered as a sole trader - PSI or no PSI.

Seek specific tax advice or call the ATO for confirmation.

 

thanks superman

I find it difficult to get time to call the ato with my day job..

My understanding is that there is a difference between psi and psb with the items you can deduct...can anyone clarify please?

Thanks

R.

 

Basically, if you derive PSI then you are treated as an "employee" from a deductions viewpoint - very restrictive.

Too big & messy to try to explain in detail, many catches & exceptions depending on circumstances.

Better to trawl through the ATO website.

Cheers,

Rob

 

a very belated thanks Rob

Cheers

R.