When it comes to filing your business’s taxes as a freelancer, it can be quite stressful. Whether you have financial knowledge or not, it can be quite a lot to take on while juggling your other business tasks.
Here are some tips to take on board for those self-employed people among us that want to master their tax returns every year.
Get an online accountant
Most freelancers will depend on online services and support to guide them through their work life. Hence, they might avoid getting financial support when sorting their taxes as they simply do not want to have physical in-person help.
Therefore, getting assistance from Cloudbook Online Accountants can help you with your self-assessment tax return as well as other things, which will help you to pay minimum tax while paying less for financial support.
Stay on top of your earnings
It is common for freelancers to earn varying amounts each month. Therefore, each year’s tax return can look different.
It is a good idea to stay on top of earnings so that you can ensure you save enough to pay off your taxes. You might earn more than the previous year. Hence, the amount that you owe will be different.
You can stay on top of your earnings through personal tracking. Or, your online accountant can help.
Save each month
When it comes to saving for paying your self-assessment tax return, you won’t want to leave it until the last minute. The more often you save, the more comfortable the payment will feel.
Hence, it can be a wise and savvy idea to save a set amount each month. Should you earn different amounts each month, then it can help to save 20% of whatever you earn. Doing so will ensure that you have enough saved when you need to pay your taxes.
Keep your receipts
As a freelancer, you will need to report your outgoings as well as your incomings. To do so, it will help if you keep every receipt. You can expense all kinds of things from your phone bill to your meals out with clients. Keeping receipts will help you to keep tabs on your expenses, which you can claim back.
This will reduce the amount that you owe and ensure that you pay taxes fairly.
Know what you can claim
Speaking of claiming back expenses, it will help if you know what you can claim back for. For instance, a great tax tip for freelancers is to claim back for rent and other household expenses if you work from home.
You can claim back portions of your rent bills, Wi-Fi, and much more. Hence, you can dramatically reduce the amount you owe back in tax.
Other things that you can claim back include technology and other equipment that you buy for work, as well as fuel for your car to get to and from meetings.
Being savvy will help you stay organized and also save money on your taxes.
Image Credits: Steve Buissinne