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If you have embarked upon a freelance writing career then you may be wondering whether there are any tax deductions that you can take advantage of. The following outlines various details relating to tax options, and how you can potentially ensure that you don’t miss out.
Perhaps the best piece of advice is to ensure that you have an accountant. In fact, in some countries, if you wish to be self-employed then having our accountant is mandatory. If you’re in a country where you have the choice of doing your own tax returns at the end of the year, then it may seem cheaper and more cost-effective not using an accountant; however, you may be unaware of any laws or ways in which you can use tax deductions to increase your take-home revenue. Equally, you could be at risk of large fines or other penalties should you make any mistakes; therefore, it is certainly advisable to hire an accountant to help you.
In order to ensure that you don’t come into financial difficulties at the end of the financial year, it is important that you separate any money that you need in order to pay your income tax. Whilst it may seem like you’re getting paid a large amount, it is important that you are aware that the taxman will need to take money from you. As long as you have the money saved up, you may get a nice surprise based on any tax deductions that you might be able to claim later on.
In order to ensure that you don’t leave yourself short changed, it is important that any rates you charge as a freelance writer take into account any tax payments that you may need to make. Just in case there are any problems when it comes to claiming tax deductions, ensure that you don’t lower your rates in the false expectation that will be able to make various tax deductions, as this can lead you to become out-of-pocket come the end of financial year.
In fact, whilst setting the rates that you charge, you should include any expenses you can think of. For example, you may need to buy a new laptop or other electronic devices in order to assist you with your work and, whilst you may be to claim tax deductions on these, you should at least account for the full cost of them when setting budgets and minimum rates that you can charge.
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