Hi everyone. As the title suggests, need to get some insight on the benefit of creating a a current account or whether it’s necessary to do so considering my situation.
Just a little background, I’m currently freelancing full time. However, my “freelance” work may be slightly different to what most freelancers do, as I’m currently engaged with a US company on a contract basis and being paid a supposedly fixed amount each month.
The only variations each month is when I needed to include claims and also have to adjust the amount to vary so as not to flag on their side as a “salaried/employee” of X company. But eventually total amount received will be the agreed contract amount. I work from home full time, so in terms of “business” expenses, perhaps internet, phone, meetings and transport would be part of it?
I’ve consulted a few accountants and the feedback I got varies. Some said that current account is necessary to ensure proper records considering I’m a sole proprietor, however another said not necessary as I don’t exactly have any major expenditures and can just track through my savings account.
My concern is if in the future I want to take a loan, would it be an issue under savings account? Would servicing loans and having credit cards sufficient to show my credit score? I never missed payment, however I don’t self contribute for EPF etc, just set aside my money in ASB and unit trust.
And on the matter of filing, would it be borang BE or B? I have registered for SSM, however because I didn’t create the current account at the time under the sole proprietor, all payment have been TT directly to my personal savings account. And according to one accountant, since I don’t have operations’ expanses, and have monthly “income”, BE is enough? And because I was a salaried employee only till April this year, so can continue filing in BE for both situations?
I wonder if the text exemptions and tax amount would be significantly different if I were to file BE or B.
Thanks
Just a little background, I’m currently freelancing full time. However, my “freelance” work may be slightly different to what most freelancers do, as I’m currently engaged with a US company on a contract basis and being paid a supposedly fixed amount each month.
The only variations each month is when I needed to include claims and also have to adjust the amount to vary so as not to flag on their side as a “salaried/employee” of X company. But eventually total amount received will be the agreed contract amount. I work from home full time, so in terms of “business” expenses, perhaps internet, phone, meetings and transport would be part of it?
I’ve consulted a few accountants and the feedback I got varies. Some said that current account is necessary to ensure proper records considering I’m a sole proprietor, however another said not necessary as I don’t exactly have any major expenditures and can just track through my savings account.
My concern is if in the future I want to take a loan, would it be an issue under savings account? Would servicing loans and having credit cards sufficient to show my credit score? I never missed payment, however I don’t self contribute for EPF etc, just set aside my money in ASB and unit trust.
And on the matter of filing, would it be borang BE or B? I have registered for SSM, however because I didn’t create the current account at the time under the sole proprietor, all payment have been TT directly to my personal savings account. And according to one accountant, since I don’t have operations’ expanses, and have monthly “income”, BE is enough? And because I was a salaried employee only till April this year, so can continue filing in BE for both situations?
I wonder if the text exemptions and tax amount would be significantly different if I were to file BE or B.
Thanks