How to calculate your self-employed taxes.
If you are a blogger that means you are self-employed. You need to calculate your own taxes and everything you do in your daily life can be regarded as tax deductible action. There are different ways to get tax relief and you would be foolish not to consider them.
This is why it is necessary to have the right information when starting a business. Every little bit counts and getting as much money as possible may be crucial for sustaining your company.
Here are all the things that needs to be considered impact the total tax you need to pay.
- Consider using CIS tax return calculator
Before I talk about anything else, it is necessary to mention tax refund calculators. As you can presume, there are some pretty cool tools on the market that can help you out calculate your total taxes. You need to claim your money whenever you can. It is rather easy to use. You have several fields including your employment type, gross income, tax deducted, work related expenditures, other relevant costs and work related miles. By entering numbers in these fields, you will quickly find the right amount of refund you will get.
- Everything can be used for tax relief
What do I mean by this? Basically, almost everything that you use on a daily basis is subject to tax relief for self-employed. Have in mind that most self-employed individuals are actually working from their home. In that regard, home can be seen as an office where everything is expenditure including energy bills and food. If you order food from a restaurant, this can be something that can be reduced. Same goes for using water in your bathroom.
- Play by the rules
There are numerous things you need to consider when calculating your taxes. Frist of all, it is necessary to record all your business transactions. The list includes previously mentioned “office expenses” as well as gas that you use for your car. Without receipts, there is no way you can get refund. Everything needs to be submitted on time. In case you haven’t managed to submit your papers, you will be subject to penalties. In other words, until October 31st if you’re submitting in paper or January 31st if submitted electronically. Make sure to keep your records as well. They are not important for tax refunds but they still need to be considered. In other words, you need to keep records of a fiscal year for at least 6 years afterwards.
- How to do accountancy
Besides using uniform tax rebate calculator, you will also have to do accountancy. Have in mind that accounting services are susceptible to tax relief. In other words, if you can do accountancy for your company, it is possible to save some additional money along the way. HMRC constantly changes rules. This is why you will have to keep in the loop as you go. Nevertheless, if you do decide to employ services of an outside party, have in mind to use services of a person you know or trust. For new entrepreneurs it is very important to have a direct channel of communication with their accountant. Oftentimes, you won’t even realize that something is subject to tax relief until you talk with your accountant.
A lot of money can be made through tax reliefs. This is especially crucial for self-employed.
Another reason why you need to pay attention to this is because it can affect your insurance.
By using HMRC tax rebate calculator, it is easy to save a lot of money, money that can be used for growth of your business. But do not forget to read about the futa tax. It’ll be a great help in case your company grows.