Personal services business self assessment checklist

This checklist helps you work out whether you are a personal services business under the law relating to personal services income.

For more information, you should read Personal services income - basic information you need to know (NAT 72468).

There is legislation specifically about how personal services income is taxed. If you work as a contractor or consultant, you may be affected.

Personal services income is income earned mainly by your personal efforts and skills.

The legislation does not apply to you if you do not receive personal services income or if you are a personal services business.

If you are a personal services business, the general anti-avoidance provisions may apply to schemes to reduce income tax by income splitting. Our views are set out in General anti-avoidance rules and how they may apply to a personal services business (NAT 8028).

This checklist helps you work out whether you receive personal services income and, if you do, whether you are a personal services business.

Important Do not send the completed checklist to us. Sign and date it below, then keep it with your business tax records. If you channel your personal services income through a company, partnership or trust (personal services entity), the words 'you' and 'your' refer to that entity. If your personal services entity receives the personal services income of more than one individual, complete the checklist for each such individual.

This checklist relates to the income year ending

Name of individual who provides the personal services this self-assessment relates to

Name of personal services entity the personal services income is channelled through

Checklist

Sections within Checklist

• Step 1 - Personal services income
• Step 2 - Results test
• Step 3 - The 80% rule
• Step 4 - The other personal services business tests
• Step 5 - Personal services business determination
• Sign this checklist and keep it with your records