Tax Planning Services Scottsdale

Tax planning services in Scottsdale cover several aspects. These aspects include the timing of income, size, and timing of purchases, and planning for other expenditures. To create the best possible outcome, the types of retirement plans and the selection of investments must complement the tax filing status and deductions.

 

Tax Preparation Scottsdale

The process of preparing income tax returns, generally for a person mostly for compensation is known as tax preparation. With or without the help of tax preparation software and online services, tax preparation can be done by the taxpayer. Licensed professional such as an attorney certified public accountant or enrolled agent, or an unlicensed tax preparation business, can also do tax preparation.

 

Now coming to the tips, that can help you file your Self Assessment tax return

  1. File your return online, not by post

Also known as ROS (Revenue Online Service), Revenue’s online system is user-friendly. Depending on the information that is being inputted by you, it calculates your tax liability rather than you having to calculate it yourself.

And, in general, it’s much easier to use the online system rather than filling out a hard copy form and posting it. Revenue very much discourages postal returns anyway.

However, there is one cohort who have no option but to send in a hard copy return.

 

  1. Don’t throw out or delete your documentation

Though you’re not obliged to send in any documents, you must retain them.

The accountants of business owners are required to keep all the documentation related to the business in existence for at least six years, as Revenue may require the same if they carry out an audit.

 

  1. Be organized

OK, it might seem obvious, but as any accountant will attest, it needs to be said. Be organized and don’t leave it to the last minute to gather all the relevant documents and records.

“If this was done earlier in the year, it would facilitate the preparation of tax returns sooner and taxpayers could plan for the payment of their tax liability and for making pension contributions to reduce their tax bill.”

 

  1. Claim tax relief on your pension contributions

One way to reduce your tax bill is to make pension contributions and the government is very generous in terms of the tax relief it offers on such contributions.

You can claim 40% back on your pension contributions, up to a certain limit, only if you pay any income tax at the higher 40% band.

“The maximum amount of earnings taken into account for calculating tax relief is €115,000 per year.

  1. Be clear on what expenses you can claim

Expenses relating specifically to the business may be claimed as a deduction in your tax bill. Claimable expenses include:

Purchase of goods for resale

Wages

Rent, rates, repairs, lighting, and heating

Accountancy fees

Interest paid on any money borrowed to finance business expenses/items

Lease payments on vehicles or machinery that are being used in the business.

But be wary – expenses relating to personal items such as for your car or mobile phone may not necessarily be claimed in full. Only the usage that relates to the business can be claimed.

 

  1. Use a good accounting software package

Using a reputable accounting software package can help you to be prepared and organized.

Self-employed individuals should always use a good software accounting package to record business transactions on a daily basis.

If transactions are recorded regularly and with great accuracy, then it should expedite the preparation of the business accounts that are required to complete the tax return.

 

  1. Beware of the time limitation on claiming tax relief

It’s not just pension contributions that are eligible for tax relief. You can also, claim tax relief on your medical expenses and third-level tuition fees – both at 20%.

However, there is a time limitation.

“A claim must be made by 31 December 2019 for tax reliefs in respect of the year ended 31 December 2015.”

 

  1. Check your eligibility for claiming to Start your Business Relief

Another good tip is that, if you have been unemployed for more than a year, you can avail of a generous tax break.

“The first €40,000 of annual profits of the business is not subject to income tax for the first two years. However, PRSI [Pay Related Social Insurance] and USC [Universal Social Insurance] will always apply to the profits.

 

  1. A cloud-based accounting package can be of great use

In terms of time and cost, a cloud-based accountancy package is the only option to consider for a business. 

The overhead in maintaining financial compliance is potentially the biggest administration cost. A cloud-based accountancy package allows you to manage information across multiple locations.

Tax planning services Scottsdale also ensures that the accounting information is always up to date and that any of the team can have access to and can manage the systems from anywhere.

 

  1. File on time

Lastly, but maybe most importantly, don’t ever miss the deadline date. The D-day for filing and paying for online returns is November 30th, 2020.

Lastly

Time is running out, so don’t draw attention to yourself by being late with your self-assessment tax return. You will not only be charged for a financial penalty, but it could also trigger Revenue to carry out an audit on your financial affairs.

 

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