SELF-EMPLOYED

If you are an entrepreneur running a small business, you don’t necessarily have time to be thinking about tax planning year-round.

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However, letting details like these slip through the cracks can lead to a massive headache at tax filing time (which is June 15 for self-employed individuals). You may be scrambling to organize receipts and find other deductions a few days before the deadline, causing considerable stress on top of your usual daily challenges.

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A common pitfall for self-employed people is not putting away sufficient money throughout the year to cover tax owing. When you’re employed by a business, you typically have an adequate amount of tax deducted from each paycheque, and you may even end up with a tax return. However, as an entrepreneur, it’s up to you to make sure you are putting enough money aside as you earn revenue. You’re probably also charging HST as a business owner, so remember that you have to remit that money as well.

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To deal with this particular challenge, you could automatically have a set percentage of your earnings go into a savings account to at least earn some interest towards helping pay down your tax bill.

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To find out more about what the tax experts at EcoTax offer, including payroll services and the preparation of financial statements, call 905-544-4888. The office offers free parking and is located at 2191 King Street East in Hamilton.