Winner of Notebook &Invoicing for musicians

 Winner of the Notebook

Congratulations to Mark Panetta who has won the notebook worth $400 (or gift vouchers to the same effect).

But there are still benefits to signing up to the no money newsletter – I’m going to link to download my HELP-HECS calculator soon.

I used a random number generator after putting all my old and new newsletter subscribers into Excel.

Now Mark actually plays in my band (although I didn’t think that was good enough reason to deny him the prize).

now might be a good time to write about a problem I had with the band actually….

Invoicing for Musicians (and other people too!)

Our band played a gig 2 weeks ago. The guitarist has asked me to write an invoice to the pub (we have been told by the lady who organised the event that is how they pay).

So I realised this might be a useful article – Invoices! My previous article Tax obligations working for yourself/starting a business didn’t mention about invoices.

Just to recap If you are in business – you need an ABN (Australian Business Number).   If you give your invoice without an ABN to a business - they might withhold 46.5% tax from your payment (which you could only get back when you lodged your tax return).

However – our band doesn’t have an ABN (I have been too busy/lazy to  go to www.abr.gov.au and spend 10 minutes completeing the ABN form online)

The result – I prepared an invoice using my ABN.

Invoices

There are ATO rules as to what consitutes a valid invoice. http://www.ato.gov.au/businesses/content.asp?doc=/content/48360.htm - shows some standard invoice examples. Also see my example  Invoice

Why it is important to have a correct invoice – is that the ATO w can disallow Input Tax Credits (where you have claimed GST paid ) or disallow a tax deduction.

Here is the ATO page with link to PDF showing valid invoice requirements. Although it is pretty common sense, your ABN, GST charged, Total Cost, etc.

If it is over $1,000 description of goods and the purchasers name (and maybe address)… which I think covers all the main items.

Good luck with the invoicing!

Posted in Business, Website Updates
  • http://rockstarhookups.com.au Steve

    Hey dude,
    Couldn’t you just say you’re doing it as a hobby on the invoice so that you don’t need an ABN?

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