Being self-employed can have its challenges, but it’s the freedom that it gives you that’s incredible to have. Paying your taxes though is one thing that you need to keep on top of.
When working for a company, these are usually sorted by the accounts team. But, as you’re now the accounts team, amongst other roles, here are some tips on paying taxes when self-employed.
Simple Budget Planner
Sign up and get instant access to our FREE Simple Monthly Budget Planner!
Save Your Receipts
The first thing you want to do when it comes to paying your own taxes is to save all of your receipts. Anything that can be claimed back to your business is going to help reduce the amount of taxes you pay. It’s all dependant on your business, but things like your gas or the equipment you buy to do your work could all be claimed as company expenses. Keep these receipts save and have them put into a filing system that keeps them from getting damaged. Ideally, you want to digitally upload them because that way, if they got damaged in any way, you could recover them your computer.
Related: Apply These 12 Secret Techniques To Drastically Reduce Your Financial Stress
Get Professional Help
When doing your taxes, it can feel like quite a complicated process, and sometimes, it might just be worth getting in some professional help so that you don’t find a fraud lawyer in Durham, knocking on your doorstep for misclaimed taxes. You want to ensure that you get it right, and someone who has experiences with self-employment and tax returns will be able to do a better job.
Start Inputting Your Income Now
A lot of those who work for themselves will leave their taxes until the last minute. That can make for a stressful few days, especially if you’re cutting it fine for the deadline of when it needs to be done. So with that in mind, you should start inputting your income in right now. That way, you can continue to stay on top of it and to ensure that you’ve inputted in all the relevant information. That way, the majority of the work is done by the time you come to do the actual processing. And when your self-employed, time is a precious thing and if there’s a way of saving you some time, then it’s definitely worth doing.
Related: How to Pay Down Your Debt Faster With The Debt Snowball Method
Set Aside The Usual Taxable Amount
It can be a wonderful feeling to see money coming into your account, the full amount, and not something that’s been taxed yet. However, that fantasy must soon fade, and it’s important that you’re setting aside the usual taxable amount as it comes in. Stick this in a separate bank account that you can’t touch. That way, when it comes around to you paying for it, you’ve got it readily available to go at a moment’s notice. If it’s sitting in with your other money, then it’s likely to get mistaken and spent. A big tax fee and no money to pay for it is not going to bode well for your next financial year.
Do your taxes and ask for help if you need it.