It is indeed proud to feel self – employed and not attached with corporate strings makes it feel liberated. And with some tax saving tips the self – employed people will can save some more. Although when talking about filing for taxes, it is indeed not an easy way job done.
Working as freelancers
In case of working as a freelancer, it is vital to keep complete and up to date track of your income. You should keep record of your relevantdocuments and other essential documents needed. In case your amount does not matches with the taxes paid, all your details and income sources and other relevant matters will be audited by the government. This could lead you into a big trouble. So always make sure to check for complete record filings and also that you do not miss up on any form.
Office at your home
If you are working from home and you are to confirm by the guidelines for office space, then there would not be much of a problem. In this case, you can deduct any kind of expense which is in use for your business use. Even in cases of papers, always show that you are using a particular part of your home as business use. You also need to mention as exact percentage of your house you are utilizing for business needs.Some of the expenses you can deduct by showing the above are insurances, some other utilities or repair etc.
Deductions for travel
Travel expenses are usually deductible. Showing that your vehicle is only being used for travel is totally out of the question, as that is merely next to impossible. But if you are saving in all the travel related expenses, you can get deductibles. This should show your office to home and vice versa receipts. Even if you have got a temporary task and have to go for somewhere for it for a specified time period, that also accounts. Such travel receipts are also accounted for deductibles. Travel expenses which are related to meals and hotel bookings can also be utilized.
Depreciation of your utilities
If there are assets at your office whose value is depreciating with each passing year, you can always put them down. In offices many of the items such as printing machine, the photo copier, fax machine, other big utilities etc. can be noted down for. There are particular guidelines under the IRB on calculation of the depreciating value of such items. Plus you can also get to know which all items can be included in the above.
Tax preparation is also accountable
Yes! This is also deductible. Different types of books on tax preparation, any type of material to acquire the knowledge of tax deductibles is also deductible. If you are utilizing any kind of software as well for the same is also deductible. If you are taking help of professionals such as chartered accountants or legal experts are also deductible. The fees of their payments or any other form are deductible as well. The professionals will provide you complete help for all tax related issues.