How To File Tax Return – 10 Tax Tips for Your Online Business and Self Employed Entrepreneurs
Eek! How to file a tax return is definitely the area that needs to become more fun in business, would you agree?
Well, it’s tax time again…
For a number people, tax time is a whole nightmare.
Remember though, there are some people who actually love tax season when they receive a big tax refund each year but, if you own your own business, it does not work out that way.
To maintain what we pay in taxes down as low as possible, we will need to know what we can deduct and what we cannot.
For a good deal of us, it’s better to go to a professional who can help with how to file tax return and make sure we get the most deductions possible.
If you are among the many that choose to do your taxes this year, here are a few pointers that will help you minimize your taxes.
1. Keep Organized –
Always keep receipts and records of all your purchases, expenses, and income.
This includes internet, computer, payment merchant fees and online costs that are becoming more popular nowadays.
Keep рареrs саtеgоrіzеd аnd fіlеd. Тhіs wіll sаvе уоu а lоt оf hеаdасhеs whеn tах tіmе аrrіvеs.
A good deal of records can be stored and organized electronically as well.
2. Home Office Deduction –
If you’ve got a room in your home that can be used only for your business you can deduct a portion of your home’s expenses.
Additionally, it has to be the primary place of business, which means that you don’t rent office space or run business elsewhere.
Having a home office, you can deduct a portion of your mortgage, utilities, and home repairs.
3. Donate to Charity –
You can deduct cash and property contributions, but you must keep impeccable records on all items.
For example: if you contribute over £5000.00 in a non-profit cause, you must get recorded in writing for your accountant. You also must be able to itemize every item donated.
4. Mileage Log –
If you use your vehicle to see clients, or for other business functions, be certain to keep a mileage log.
Document the date, the destination, the purpose of the trip, the mileage from your odometer at the start and finish of the trip. You cannot simply write down what you drove 50 miles. HMRC will expect much more detailed information.
5. Hire Your Kids – If your children are teenagers, you can hire them part-time to help you with your home business. This is good experience for the children because it will increase their knowledge and self-esteem, as well as helping with your taxes.
6. Telephone Deduction –
If you have just one phone in your home, you can deduct part of it as a business expense, because it’s used for your organization.
You mау dеduсt lоng dіstаnсе сhаrgеs thаt аrе mаdе fоr уоur organization, but you might want to consider getting a second line used just for your business. This way the cost can be deducted.
7. Training and Information –
If you take classes, attend networking, seminars or further your education that will help you with your organization, those expenses can be deducted. You can even deduct business-related books, papers, and other publications.
8. Mailing Expenses –
If you send greeting cards for your clients and prospects, they can be deducted as a business expense.
You can also deduct the postage. If you bought email addresses or mailing lists for your organization, they could be deducted as well.
9. Online Costs –
Web hosting, domain name, and software are all deductible expenses.
If you paid someone to design your website, don’t forget that on your business expenses. However, be clear about specific rules on website design prices.
10. Health Expenses –
There are some life insurance and medical costs that can be used as a tax deduction. Including insurance premiums, co-pays, and other health-related expenses. This can be dependable on the nature of your work and health.
The information provided in this guide relies on general research so make certain to check out all new tax laws in your country or consult a professional tax expert.
Tax time does not have to be a stressful, or uncomfortable, experience.
Keep all your documents organized, keep abreast of the tax laws and know what you can and cannot deduct.
If needed, make certain to go with a professional to make certain you get the all the deductions you deserve!
Start a conversation on the Live Chat on this website for help with how to file tax return and a member of our team will be excited to speak with you today.