Planning

Plan for next year tax.

Tax Planning is an all year round process. By definition it should be proactive, not just reactive.

Know what you expect to earn:

Planning for tax must be future orientated rather than past reactive. If your income is escalating, then plan for it.

Know what you expect to pay:

The tax systems are a “PAYE” – Pay As You Earn. If you receive wages your employer withholds income tax from those wages. If you have any other kind of income from self-employment, dividends, interest, rents etc., then you may have to pay estimated taxes.

Project income and deductible expense:

Discipline is the key to all tax planning. To be successful, you must have the discipline to project your income and deductible expenses.

Prepare for an Audit:

Your business can get audited. No matter how careful one is, or conservative, your number just might have come up for the random selection. This audit can be tamed by planning ahead.

An audit is merely a substantiation process. Your enterprise may have to prove your deductions.