Self Employed Registration – Tax Planning Tips for Self Employed People
When you are about to do the self employed registration for the first time, you must think about more than your salary and how well you can afford to pay the bills…
You need to consider income tax obligations and quarterly tax filings online.
You also have to consider filing paperwork for independent contractors and anyone that you might use to work for you other than yourself.
The thing is, working for yourself can be plenty of fun, even when you consider the fact that you need to pay all of your taxes and give a share to Uncle Sam…!
Paying your income tax when you are self employed is simple if you simply plan ahead.
In some areas you will pay quarterly, and you’ll need to estimate what your earnings will be for the upcoming quarter.
In the UK the new self employed tax system will also change to quarterly filings, which the government is setting up to be managed all online.
This is usually not that hard, you can use your tax documents from the last year, or you may overestimate what you’ve made in the previous quarter.
A great tip is to overestimate by a few hundred bucks. This will help to protect you from owing at the end of the year, and you might very well find a refund if you overpay.
Filing your quarterly online tax return is a really good idea because you will make shorter work for your self-employment tax work.
Online programs can walk you through all of the steps that you need to follow to be sure that you are entering accurate information that’s unlikely to be audited at the end of the year, which everybody wants to enjoy.
Creating a very organized system and paying quarterly for your self-owned company are the best tips that one can have.
Νо оnе wаnts tо bе hit with late penalties, 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 find it regrettable, because you will end up owing and you can be charged even if you did not make any income in that year.
The right organization will help keep you current and will help keep you on the good side of the IRS in the USA, or HMRC in the UK!
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 pay taxes and pay yourself at the same time.
Tax services can help keep you organized, too!
I invite you to start a conversation on our Live Chat to learn more about how we can get it done for you today. Or put your question in the comments below for short & snappy free tax advice.