This will help the soloist grasp the fundamentals so that reducing your tax is possible! The first thing to know is:
What is a Tax Deduction?
The ATO criteria and definition of a tax deduction is:
It must be spent.
It must be necessarily incurred in earning your income.
A definition we use is:
A tax deduction is an expense that is related to your income.
The formula…

While a potential difficult area for the non accountant capital allowances reduce the net tax payable. The difficulty in this section of the tax return form is that it is an area which many start up businesses may not have come across before. It is an area which affects not just the calculation of the tax allowances and knowledge of the tax rates but also how an item becomes considered…

What is Self Assessment?
Self assessment enables an individual to prepare details of their incomes and relief’s for HMRC. HMRC will then calculate the tax liability based on these figures. These figures will not be checked until later in the tax year.  However tax law is vast and confusing so it is always best to instruct an accountant to prepare this on your behalf to ensure you don’t end up…

HM Revenue & Customs (HMRC) was formed on the 18 April 2005 to ensure that every person paid his or her tax on time. This department completely responsible for providing an effective and fair tax service to all UK citizens and businesses. Self Assessment (SA) involves completing an online or paper tax return in order to provide proper information to HMRC department about your income and capital gains or to…

For the past two or three decades, determining the role of the government in business cycle has perhaps been the central political and economic issue in industrial democracies. Although the number of nationalized industries is steadily declining in most parts of the world, people with left-wing views still generally believe that the government has an essential role to play in providing the economic infrastructure (public transport, telecommunications, and so on)…

If you are the owner of a C Corp and are planning on selling your company, you must understand the ramifications of the stock sale versus the asset sale. Here is what happens when there is an asset sale of a C Corp. The assets that are sold are compared to their depreciated basis and the difference is treated as ordinary income to the C Corp. Any good will is…

Selling a privately held business is often romanticized as face-to-face negotiations over business valuations and purchase price.  Whether small or large, these transactions can be extremely complex and require a great deal of work behind the scenes.  As the size and/or complexity of a transaction increases, the need for innovative structuring options also increases.  For asset sale transactions, the ‘allocation of purchase price’ can become another area of negotiation after the…

Payroll tax problems can close a business overnight and lead to criminal sanctions including prison time. As the IRS grows increasingly aggressive in their collection attempts for past due payroll taxes, struggling business owners with delinquent payroll taxes need to know how to protect the future of their businesses. Don’t let the IRS levy your funds and take control of your cash flow – find out how you can resolve payroll…

What’s the most tax advantaged group in the tax code?  The answer may surprise you, especially if you’re a business owner.  But the answer is simple – you, the business owner are POTENTIALLY the most tax advantaged group in the tax code.  Believe it or not, business owners get all the breaks.  And no, the tax breaks are not just for the Fortune 500 companies, but the middle market, small business,…

It’s no secret that the Internal Revenue Service is making a huge effort to collect every last cent of unpaid employment taxes or unpaid payroll taxes the government is owed. In that spirit, the IRS is cracking down on small businesses with unpaid payroll taxes and past due employment taxes, which until recently have largely flown under the radar. Any company with unpaid employment taxes or delinquent payroll taxes has committed…