Tax Tips for the Self-Employed

These tax tips for the self employed grew out of the fact that a full-time career can now be made for many self-employed businesses but with this comes concerns on taxes. These may be specific to people who are self-employed but there are a number of different methods and tips to stop the taxman taking all of your hard-earned money.

The following are the most useful tax tips for the self employed
1. Preserve well-organized records: Unlike a big corporation in which someone is hired to maintain records of all income and expenses, it is up to you to keep very good records, save all receipts and be able to support your deductions. Include all business expenses from postage and shipping, to computer software.

2. Office space: Whether you have a separate office facility or are using a portion of your home, deductions for what your business uses may be taken into account. E.g. office space, separate phone lines etc.

3. Think of family expenses: There are suitable deductions for daycare, nanny care, babysitting and any other type of childcare provided while you are working. Medical expenses may also be accounted for your entire family by employing them legally.

4. Set up a retirement plan: You should consider setting up a self employed qualified retirement plan not only for tax purposes but for the sake of saving money for your retirement years.

5. Defer income if necessary: Being self-employed, you can alter your billing slightly to defer income if you see yourself heading into a higher tax bracket. You can also increase your expenses near the end of the year.

6. Get money back: Being self-employed, you should pay a lower rate of National Insurance – One tax tips is to make sure you are not paying over the odds!

Finally – ask your accountant, they will have a welth of helpful and legal tax saving tips to pass onto you