Cross the T's and dot the I's
I use to avoid the taxman like the plague...actually, I use to avoid the whole system if I could...I just could not bother with thier B.S. Having 'Big Brother' hovering over me with a magnifying glass just isn't my thing....so it's quite ironic really that here I was EAGERLY walking through the taxman's doors with a grin on my face...why?....because I am planning on my financial future in business The Right Way!.
Whatever you are planning to venture in online, if you are intending to make a considerable amount of money in it...it is classed a business no matter what you say....and when it comes to making money, guess who wants a piece of it....that's right.... The IRD...
Now every country has thier own tax laws that you will need to enquire about. You need to be aware of your obligations because no matter how you try to avoid it...with this day and age of digital technology, the taxman will eventually find that paper trail and bite you hard if you leave it too late and play ignorance
Time and time again I have heard of celebrities and wealthy businessman being stung hard because of tax evasion...and this is something that I don't want or need to be in...it just isn't worth it!
So where ever you are on this beautiful planet...if you are planning to make your venture online a long term, successful business....then cross the T's and dot the I's right from the start. Enquire about the tax laws in your country and how you can use these laws and manipulate them to your favour so you're not paying more tax than you should. This is where a good accountant comes in, but if you can do the hard yards, and research alot of it yourself...you're saving money!
Hit your local library for local resources.....knowledge is Power!
Good business is Smart business....start things right and you'll be on your way to success!
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Yes, nobody needs that stress. Just take all the deductions you can. The right accountant can save you a bundle.
Yup for sure...it will also pay to ask each potential accountant beforehand what style or system of book keeping they prefer thier clients to use.....this will save the accountant time and save you money from being charged extra for the account to redo the book keeping, etc...but overall, a necessity to get this side of business right from the get go!
Thanks Shawn...it's so easy to not bother about it because we're only small fish in a big pond...but as you and I know....in the internet world, small fish can get mighty big very fast!. A prime example is Nick D’Aloisio, the 17 yr old who sold his mobile app to Yahoo for $30,000,000USD....now I'm pretty sure mr taxman will be knocking on his door...
You're very welcome Patricia.....starting with a solid foundation is the key to building success in the long run!
Hey, thanks Makaveli - you are at such a cool age to get into business, the last thing you want to do is to start off on the wrong foot...set yourself up in business properly, and look at the IRD just like figuring out the internet..."how to make it work for you and your business so you can be a success!"
Great post to make others aware.There are also free tax and revenue course running. I have been on a couple and they were great. I can file my returns no problem now. routine book keeping helps too!
Cheers art. It's an eye opener and definitely worth every minute learning about. Making money online can be a successful venture if you play it smart!
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Yeah, I always learn the hard way. I do my taxes online to save money, then the IRS comes back over something stupid, that they say is income, I disagree, anyway, so here they come, three years later, wanting their money, PLUS interest! I use to love tax time when I was in the military, since so much of our pay was tax free, and I always got money back, so I about fell off my chair when I retired, and OWED $2,000. It really irritates me, they even tax the couple bucks you make at craft fairs and flea markets, give me a break. Now I find out that the little bit I made at this Antique Mall, anything over $600, is taxable. I put it as income, but then I find out that I have to treat it like a real business, what a pain, it's just a hobby. Anyway, this is good to know, in case I ever do make some money here.
I don't know about the tax policies over there, but if they are stating it as a business, you can claim on alot of your home expenses because you run it mostly at home....like storage space for instance...you have stuff all over your place just like me!
Your phone, travelling, internet meals, clothing, stationary and materials you buy for your work. All these and more you can have a percentage claim if not a 100% claim on.
Pity about the $2,00 you owed...you might need to look more into it...be nice if they owed you $2,000!
Thanks a lot. I knew there were things you could claim, I didn't realize all that though, I never kept track of anything, since I didn't think I'd make that much anyway. I guess I need to, since I pay $100 each month just to rent the two spaces, plus all the stuff I buy to sell there, and supplies for the items I make. I saw a Senior Tax Advisory person the other day, and I guess they can do your taxes for only $99, I guess there's some benefits of getting old. Anyway, I'll do that this year, and keep track of everything. I didn't even think about the storage issues, I have crap everywhere! Have a good one.
hahaha I know exactly what you mean Cindi by having crap everywhere...and what a better way than to have IRD pay you for having it everywhere!. It's all about using the system to work for you, which is why the wealthy stay wealthy.....they'd claim for toothpicks they use to pick the caviar between their teeth during a business lunch! lol
If you're going to use a Senior Tax Advisor to do your tax, ask what kind of book keeping system they like to use. Many accountants have different ways in book keeping, and if you can attain and your bills and receipts, etc in the same way it will save them time in doing your tax and will save you money when you get your bill!. But I still think your'e a spring chicken! :)
A Spring Chicken? Well, that sure made my day, good thing we're online......yeah, I'm a spring chicken, and I'm tall, blonde, and gorgeous!!! Anyway, back to reality. You're right about the wealthy though, some of them are so cheap, I even heard of this one famous guy, can't remember who (spring chicken, old brain), but this guy bagged his lunch every day, and drove this beat up old car, and he was a millionaire or something. Don't guess I'll ever get rich like that, I like shopping too much. Anyway, I'll do as you said, maybe call this Tax advisory and see how they recommend I do this. I also heard that you have to file a partial in the middle of the year. She didn't mention that though, but then that's probably for those who are actually making some money. Well, I'm busy cleaning (ULK!) so better get back to it. You have a great day, I won't forget this spring chicken comment, guess it's all in your mind, right. Later.......