In this article we put the spotlight on some key tips that you need to know before it is too late.
And best of all we do it in a simple and clear style to help you take the best action.
When you are self employed, you start to think about more than your salary and how well you can afford to pay the bills.
You need to consider income distribution and quarterly tax filings…
Fun times I hear you say!
You also have to consider filing paperwork for being HMRC self employed in the UK.
This means independent contractors, freelancers, landlords, sole traders and anyone that might be starting their own online business.
The thing is, even if you have a lot of responsibilities tax-wise, working for yourself can be plenty of fun especially when you consider that you will be moving towards more freedom and you have permission now to be yourself and focus more on the work you actually enjoy.
Paying your income tax when you are self employed is simple if you simply plan.
If you pay some money aside every month into a separate savings account it will be easier later to estimate your tax bill and pay it off.
This is usually not all that hard, you can use your tax documents from the last year, or you may estimate based on the sales invoices you have sent out to customers.
A great tip is to overestimate by a few hundred bucks.
This will help to protect you from owing anyone at the end of the year.
You might very well find a refund if you overpay.
Updating your bookkeeping at least quarterly for your online tax return is a really good idea, because you will make the work shorter for yourself and avoid long nights before the tax deadline.
Online tax software programs can walk you through all of the steps that you need to follow to be sure that you are entering accurate information.
Creating a very organized system and getting tax advice from a tax expert are the best tips that one can have.
Νо оnе wаnts tо bе аudіtеd оr tо pay more than they have to, and when you are organized, you can avoid extra fees.
If you don’t pay your taxes on time, you will come to regret it, because you will end up owing and you can be charged extra interest filing the tax return late.
The process of taking care of the tax part of your business early on will help keep you current with your finances and will help keep you to fulfil your HMRC self employed commitments!
If you keep an open mind and a positive attitude about your self employment, you’ll discover that it doesn’t need to be hard and can be a very positive way to grow your income and achieve the lifestyle that you truly desire
To learn more about how to file taxes start a conversation on the Live Chat now and a member of our team will be happy to assist you. Or complete the form below for a free callback today.