The subject of tax is vast and often confusing for most. Here are a few tax tips that will help you, not just this year, but in the future as well.
1. DON’T BELIEVE EVERYTHING YOU HEAR
Don’t follow “urban tax legends” but rely on an accredited source. Going to a professional who knows what they are doing isn’t just referring to finding a good hairdresser. Someone who knows the taxation laws and regulations can save you more money in the end.
2. FILE ON TIME
Why pay MORE money, in the form of interest and penalties, if you don’t have to? Or alternatively, if you are entitled to a REFUND, why are you letting the government use the money when you could be spending it or earning interest?
As everyone knows, the personal tax filing deadline is the 30th of April. Unless you are a sole proprietor, then your tax filing deadline is June 15. However, did you know that your taxes are still due on April 30th?
3. TAKE ADVANTAGE OF AVAILABLE TAX CREDITS
There are many tax credits available to the average person or family. Although you may not be a business owner, or have varied investments, there are still many credits that you may be able to claim.
This is an acronym to help my clients remember the key to a stress-free tax season. Keep it SIMPLE, keep it ORGANIZED, keep it SEPARATE.
Keep your bookkeeping/accounting records separate throughout the year – business and personal. Invoices, receipts, tax slips, etc…ensuring that everything is organized is half the battle.
5. REGISTER FOR HST
A business is required to register for HST if earnings are more than $30,000 in a single calendar quarter or over the past four consecutive calendar quarters. But what if you don’t make more than $30,000? You might want to consider registering anyways. Start-up costs and operating expenses can be quite high. You may be paying more in HST than you collect. If you were registered for HST you would be eligible for a refund!
Sharon Perry CA is a successful small business accountant. Passionate about helping women through the world of taxes and loving her time spent balancing her home based business and her 4 children!