If you’re self-employed you probably have a lot of questions regarding tax and tax refund. This whole area can be quite intimidating for newbies as there are numerous rules and regulations.
Luckily for us, there are always institutions which we can contact in time of need. There are even some handy tools on the market such as CIS tax refund calculator but more on that later on.
Anyway, preparation is the key. You need to know your right and obligations so you can make the most of it and not pay money if you don’t have to!
Here are five amazing tips for self-employed.
- Your home is your office
The thing that most people tend to neglect is that your home is actually your work space. In that regard, all the resources that you use (whether we talk about energy or food) can be shown as company costs. By compiling them, you are able to get a lot of tax relief during a year. Have in mind that everything used in your home is an expense. Your electricity and water can also be included in that. Although this seems a bit farfetched, it is much better to include all these bills and get a return instead of not claiming it.
- Check your gas
Whenever you travel, you need to keep the gas receipt. This gas can only be included in your tax return. This is a common practice. Also if you previously didn’t have a car, you can get a company car. That way, it can also be mentioned as one of the company’s assets and tax will be calculated for it. However, have in mind that this is still an asset. In case of a bankruptcy you will have to pay all your debts with your assets. This means that your car may also be on the line in case something unfortunate occurs.
- CIS tax return calculator
As previously mentioned, there is a tax return calculator that can help you with all these costs and getting the most return possible. The tax return calculator can help you out in following cases:
- If you’re self-employed
- If you’re employed under PAYE
- It can be used for construction workers (including CIS)
- For uniform rebates
This tool is amazing in case you overpaid something. By calculating every cost you’ve made it is easy to realize what you did wrong and get your money back.
- Get a proficient accountant
Even though you can use a tax return calculator such as the one from Quick Rebates, nothing beats having a reliable accountant. You have to find a person that is reliable and with whom you can have open discussion. Sometimes, you might be doing things wrong without even realizing. There are numerous ways to save your money on taxes. In other cases, you might have to pay taxes for certain things and you do not even realize it. Of course, by not paying taxes, this means that you can be legally pursued. You need to talk with your accountant about everything and ask him for smaller points. You must be very careful and cover all the angels.
- Keep your records
Again, this is something most people forget to do. Even if you’ve closed your store, you’re still legally obliged to keep the company’s records. HMRC may ask for them at any time. You need to keep your records for the next 6 years after that fiscal year has passed. Information can be stored electronically. Nevertheless, it is still better if you have a backup. Have in mind that every information needs to be included!