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Tax tips all businesses can benefit from

Tax tips all businesses can benefit from

If there is one thing that all business owners cannot escape from, it is tax. While we all hate the fact that we feel like we have to give a massive chunk of our profits away, it is essential that we comply with all of the tax laws that are in place. However, this can often be a lot easier said than done, as there are so many different rules and regulations, making it rather confusing. With that being said, read on to discover some essential tax tips that all businesses can benefit from.

Set aside money so that you are never caught short – There is only one place to begin, and this is with setting aside money on a monthly basis so you can make sure you are never caught short. After all, you never know what could happen at your business in the run up to your tax payment and so the last thing you want to do is leave yourself needing to find a huge sum of money the month before. Instead, set up a direct debit and automatically move over money to your savings account every month for your tax bill.

Choose an accounting scheme with care – There are different accounting schemes to choose from. For example, if you have to pay VAT, you may find that it is better to go for the Flat Rate Scheme. With this option, you simply pay a fixed rate, which simplifies the process and can make it cheaper. However, it does depend on your business, so make sure you assess what is right for you.

Stay up-to-date with all of the latest news and laws – One of the most difficult aspects of tax management for businesses is staying up-to-date with all of the latest rules and regulations. For example, did you know that the tax allowance for dividends was reduced earlier this year? It can certainly be hard to keep up with everything that is going on, but it is essential that you do so. Otherwise, you could end up paying more tax than is needed or, even worse, you could end up on the wrong side of the law.

Consider hiring an accountant – A lot of business owners view accountants as an unnecessary expense. Nevertheless, an accountant can actually save you money in the long run, and so hiring one can be worth your while. Accountants today do not merely help you fill in your tax returns, but they look for ways that your business can save money and run more efficiently too.

So there you have it: some essential tax tips to help you ensure your business is running everything above the law and that you are complying with all of the rules and regulations regarding tax. From staying up-to-date with the latest news to setting aside money so you are never short, these suggestions require a bit of effort on your behalf but they will make your life easier overall.

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Christine Buske is a former academic who left science at the bench, and now considers herself a woman in tech. She is a frequently invited speaker, and enjoys talking about career transformation (particularly leaving academia for the business world), tech, issues around women in tech, product management, agile, and outreach. She is a proud Canadian resident, and qualifies as a "serial expat".

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