I've just spent the past few hours doing my accounts. :-( I’m self-employed and run a services business!
I don’t want to have to hire an accountant, as I’ve actually studied some accountancy before and have a good grasp of how to do a profit and loss account.
However, I do admit I’m a little rusty, so if any of you would be so kind as to answer to my questions or point me in the right direction of a paper or online resource that would be helpful to me. I’ve been bogged down in doing my job so well to win clients that I’ve kind of neglected the financial aspect of things. Now I’m eager to get back on track.
If I understand correctly in order to reduce my income tax burden, I should try to keep my profits down. One way of doing this is by deducting business expenses from my business income. (Are there other ways of reducing profits?) I will be paying income tax at the rate of 20%, as I am self-employed.
I’m not registered for VAT as I’m not in a position to charge higher rates and really don’t want more paperwork, not just yet anyhow.
These are some of the things I would like to write off as business expenditure but not sure if I can write them all off 100% (does it depend on the amount?) All of the following can be justified as being crucial in order to survive/keep up to date in my profession.
Mortgage on an apartment/office in a foreign country
Academic resources, such as books, audiovisual material
Language courses
Cultural visits (cinema, theatre)
Flights/transport to foreign countries to visit clients
Flights/transport to foreign countries for language stays
Further and ongoing education
When making my returns, would all of the receipts for the above have to be in my name for the Revenue or do I actually submit the receipts to the Revenue at all?
I also plan on doing an MBA in 2008 and was wondering if I can write all of this or just some of it off against taxes.
TIA!
I don’t want to have to hire an accountant, as I’ve actually studied some accountancy before and have a good grasp of how to do a profit and loss account.
However, I do admit I’m a little rusty, so if any of you would be so kind as to answer to my questions or point me in the right direction of a paper or online resource that would be helpful to me. I’ve been bogged down in doing my job so well to win clients that I’ve kind of neglected the financial aspect of things. Now I’m eager to get back on track.
If I understand correctly in order to reduce my income tax burden, I should try to keep my profits down. One way of doing this is by deducting business expenses from my business income. (Are there other ways of reducing profits?) I will be paying income tax at the rate of 20%, as I am self-employed.
I’m not registered for VAT as I’m not in a position to charge higher rates and really don’t want more paperwork, not just yet anyhow.
These are some of the things I would like to write off as business expenditure but not sure if I can write them all off 100% (does it depend on the amount?) All of the following can be justified as being crucial in order to survive/keep up to date in my profession.
Mortgage on an apartment/office in a foreign country
Academic resources, such as books, audiovisual material
Language courses
Cultural visits (cinema, theatre)
Flights/transport to foreign countries to visit clients
Flights/transport to foreign countries for language stays
Further and ongoing education
When making my returns, would all of the receipts for the above have to be in my name for the Revenue or do I actually submit the receipts to the Revenue at all?
I also plan on doing an MBA in 2008 and was wondering if I can write all of this or just some of it off against taxes.
TIA!