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Essentials for Putting the Ground stone of Your Tax Office

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The advancement in information technology has expanded the corporate world to a great extent, opening a number of new opportunities and pathways to reach your target customers. Online business is one of the most widely used business forms of today, which has proved effective for almost all genres of industries and businesses. For this reason, today there are several more options to earn your living than there were some one decade back. A business that has emerged significantly over the last few years is of the tax preparation business. People are quite busy today and they do not find enough time to manage their office work, family and then the other works of tax preparation are just like way too much to manage. This is the gap that has given the opportunity for others to jump into as tax preparers, by starting their own tax business.

You would have noticed that a number of tax offices have been setup recently, and this depict the expanded scope and potential in the tax preparation industry. Many people are reluctant to start their own business and prefer working for others; however, this truth cannot be denied that owners and entrepreneurs earn more than the ordinary employees. There are though menaces of financial crisis and loses in starting a business; however, if you follow all the basic steps then you will be able to reduce the risks and menaces.

Basic Accounting Knowledge

The answer to the question of how to start a tax business starts with the bullet point 0f basic knowledge, education and understanding of the work you are up to start. No matter what kind of business you are planning to start, you will definitely need some amount of basic knowledge and understanding of the field and work nature. You should be accustomed and acquainted with basic accounting rules and principles, and also have basic knowledge of corporate and property tax laws. If you belong from an accounting and finance educational background, then you are good to starting a tax business. Otherwise, you should get some basic training or internship to learn the core tax business and its vicissitudes.

Understanding of Tax software

To further maximize your chances of success, you should have command over one or few of the tax preparation software commonly available in the market. It is though recommended that you use your manual calculations to prepare tax reports, but understanding of the software tools is a plus point. Let suppose that a client comes to you whose prior tax reports are prepared by using particular tax software, and he or she wants you to use those reports to prepare the new one. In such cases, you will have to go through the previous reports, and it can be intricate if you are oblivious of tax computation by software.

These are the basic essentials that you will need to need to start your own tax business. It is obvious that your business wills not prosper in a day, and you have to render unremitting efforts to make it a string source of income for you.

 

The author of this article is Mike Watson, he has been a popular author in various Finance related niches, including tax returns and financial management. He has been writing for various online blogs and magazines, which have helped him gain an enormous fan-base around the globe.

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What are some of the different forms of tax that people must pay in the UK?

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There are a number of different types of tax that people who are living in the UK must pay. Some of these forms of tax are based on a person’s employment status and how much they are making or have made in the last year, while others may be based on other things, such as the purchases that a person is making.

Every person must pay the correct amount of all of the different taxes that are relevant to them. Whereas the majority of tax most people pay will be calculated for them by the company that they are contracted to, those who work in a contract or freelance capacity do not have this benefit or service. Umbrella companies for contractors are a way for these individuals to basically become an employee of an umbrella company, and then the correct payments and contributions are worked out for them.

In this article, we are going to take a brief look at a few of the different types of tax that people who live in the UK must pay, and what each one of them is related to.

Income Tax

Income Tax is one of the biggest forms of tax in the UK, and makes up the majority of the government’s income. The income tax “pattern” is known for the way that it has changed in the UK over the years, although the basic premise of it is that anyone in employment must pay tax on what they have earned, over a certain amount. Another form of Income Tax is Capital Gains Tax. This is tax that is achieved by selling and exchanging capital assets, for example stocks and bonds, and can also be earned by the trading of real assets like property.

Value Added Tax (VAT)

Another major source of income for the UK government, Value Added Tax, or VAT as it is better known, is “applied on the trade of taxable services and products made in the country”. In simple terms, this basically means that people pay an additional amount in tax on top of whatever purchases they make. However, VAT is usually included in the overall price given or advertised when an item is for sale. VAT is applicable for all imported and exported products that come from or go outside the European Union, as well.

Corporation Tax

Corporation Tax is a tax that is levied on the profits that a company makes. It is applicable for any companies who are situated in the UK or whose management is controlled inside UK shores, as they are then treated as a UK resident. The rate of corporation tax can often vary depending on the size of a company and how much money they are making.

Inheritance Tax

Brought in to replace “Capital Transfer Tax” in 1986, Inheritance Tax is levied on property and money that a person acquires via a gift or via inheritance in the UK.

These are just four of the main forms of tax that may be applicable to different people in the UK.

Summary – This article takes a quick look at some of the main different forms of tax that different people in the UK are applicable to pay. Umbrella companies for contractors can help freelance and contract staff to make sure they are making the right contributions.

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What Are The Different Types Of Insurance?

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When it comes to living life in a brand new country and culture, things can be a little bit tricky at first. According to Telegraph journalist Elizabeth Roberts, there are now more than 50,000 British expats living in Thailand. There are a further 30,000 British expats currently living in Hong Kong. It seems like we’re drawn to Asia in our droves, in search of a better life. What is it that all of these people expected to find there? Did they manage to find it, or did Asia turn out to be something entirely different? Whilst this leafy, green paradise is the perfect place to let loose and enjoy life – there’s no such thing as a country devoid of danger.

This is precisely why it’s so important for expats and long term backpackers to arrange suitable forms of insurance. Here’s a guide to the various different types of insurance that they might need. Follow it closely and you’ll find affordable health, personal injury, contents and vehicle insurance in mainland Asia.

Health Insurance

If you’re considering a move to another country, it’s vital that you do some research on the region’s health care system. Whatever else you do, don’t make the mistake of thinking that Britain’s health care system is just like the rest of the world’s – it isn’t. In fact, it’s one of the best state funded care systems on the planet. Whilst you can find good state health care in various parts of Asia, it isn’t up to the same standard as ours and it doesn’t always come cheap. In most regions, expats are entitled to heavily subsidised medical treatment, so they do not have to purchase health insurance. It is, however, very much advised by medical experts – there are still fees in place and even though they are small, a health insurance policy would cover their costs. If you live in a densely populated area like Hong Kong, personal health insurance is even more essential, says Business Week expert Bruce Einhorn.

Home Insurance

If you’re an expat living somewhere like Thailand or Hong Kong, it is important that you know how to adapt to the risks associated with your new home. One again, you should never simply assume that life in Asia is going to make exactly the same demands as life in Britain. As far as geography goes, the two regions couldn’t be any further apart. This part of the world is no stranger to extreme weather or natural disasters, so you must take the relevant precautions. Do make sure that you insure your home for fire and water damage, say experts at the Economic Times. The cost of home insurance is surely negligible when you consider its potential benefits. If you get in touch with a quality insurer like Direct Asia, you’ll get tonnes of help and advice on which policy is the best for you.

Vehicle Insurance

For those eager to continue driving, this is the first thing that should be arranged on arrival in a new country. Fortunately, the insurance system in Asia isn’t all that complicated. There are two types of car insurance – third party cover and comprehensive cover. The only legal requirement is third party cover, say the experts at DirectAsia. If you don’t have third party cover to protect you from damage to another driver or car, you cannot legally be on the road. When it comes to comprehensive cover, things are a little different. It is an option – you do not legally have to be covered for damage to your own vehicle. These days, it is not unusual for mainstream insurance policies to be transferable. Read the small print on your contract, or ask your insurer for more information.

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Everything you wanted to know about binary options but were afraid to ask …

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Well, maybe not everything, but certainly enough to set you thinking in the right direction on your way to becoming part of the steadily increasing number of binary options traders worldwide.

The promise of incredibly high profits has put the wheel into motion and it’s moving really fast. In its wake binary options brokers have sprouted up like mushrooms after the rain. So the biggest problem a potential trader is likely to encounter is how to choose a broker. The actual execution of a binary options contract is not at all complicated. In fact it is the very simplicity of this kind of trading which accounts in a large part for its success.

Although it is easy to trade binary options and you do not need in-depth knowledge of the financial markets, it is not advisable to go into it haphazardly. Rather take some time to learn the basics. It has taken some time for binary options to gain acceptance on the financial markets, but as more and more stock exchanges acknowledge their viability, there appears to be no doubt that they are here to stay. The novice will be well advised to take advantage of the glut of information available on the web and learn about stocks, commodities, bullish and bearish markets, binary options strategies and the like before actually putting his hand in his pocket.

Now that you are a little more knowledgeable, the next step is to set out to find a reliable binary options broker. It’s time to check out the various brokers platforms. When considering which broker to choose, there are several things to take into consideration. Firstly, the percentage return offered to the trader. This is usually within the region of 70%-90%. Then check the platform for flexibility and for ease of operation. Is it user friendly? How much deposit does the broker require? A reasonable minimum deposit is $200. Regard a broker who does not require any deposit with suspicion. When you set out, you should be prepared with a decent sum of money, around $1000. A qualified, experienced broker is invaluable since his expertise will help you take out contracts. He can also help you choose your preferred asset.

Traders should also consider what bonuses and other extras are on offer. New clients are often offered a first time deposit bonus. Some sites offer free E-books and seminars on binary options trading. It’s worthwhile checking too whether the site offers a demo account. It is highly advisable to brush up your skills this way before embarking on the real thing. Find the right broker who can you maximize your profits and at the same time advising you on hedging strategies to enable you to limit your losses when your predictions do not succeed.

Once you have made your decision, the actual trading process is not at all complicated. No hassle, just choose your asset from the variety offered on the binary options platform and predict in which direction it will move within the specified time. If you predict correctly, you could turn your initial $200 investment into $350 in as little as 30 seconds.

When you’ve got the gist of it, learn new strategies try and gain confidence. Take things calmly and take the opportunity to rake in the money.

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Personal Finance Planning for Investment and Retirement

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Saving money in advance for your retirement is only the first step to ensure a financially secure future. At this juncture, all you need to consider is the best investment plan for your retirement.

Here are a few best ways that you can consider while planning for your investment and retirement:

If you are planning for a long-term investment then it will be best if can invest 12% from your gross income or just 10% is also sufficient as per your affordability criteria. However, you must have an additional retirement plan besides these savings. For instance, if planning for short-term saving, you can invest 4% of your gross income and if planning to save for kids then you can invest 2% of your gross savings.

Do not forget that you would require additional fund for miscellaneous and emergency things and situations. So, you can invest in emergency fund and ensure peace of mind.

When you will reach the age of retirement, you would require nearly 75% to 80% of your pre-retirement income to lead the same life as you were living before.

Here, the most preferred alternative is to 17% of your net income or only 12% of your gross income if that is suiting your requirements. However, if you are going closer to retirement then you may consider investing 20% to 30% of your gross income. You can also consider investing in stocks and mutual funds that can help you give good returns on your invested funds.

Always remember the thumb rules:

  • If your retirement is at 60 years, invest 10% of your income.

  • If your retirement age is early, invest 20% of your income.

  • If you are in your 30s, it is advisable to save 15% on your leisure and comfort activities, 20% for luxury and 10% for basics.

  • If you are more than 30 years of age, it is wise to invest 5% more in each of the above mentioned categories.

Today’s economy is such that it is now harder for people to think or plan for their retirement. However, taking out some funds in advance from your pocket on a regular basis is the easy way to save a good amount for your future.

You can look for a financial consultant to help you find the best investment and retirement plans for your life. Thus, you must make the most of your funds in the early stage so that you could reap the benefits in the later stage.

When you want to secure your future, planning for your financial expenses in advance is a smart way to lead a stress-free life till and Finafter your retirement.

So, what are waiting for? Remember the thumb rules and considering your gross income and future requirements, invest the most appropriate percentage of your financial income.

Saving your money today will enhance your ability to spend more even when you will not be working. Ensure your future independency right now and do not let the precious time pass by.

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What Is The Future Of Business In The UK?

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The UK is the finance capital of Europe and potentially the world and it is famous for big business and innovation. There are so many companies in the city and they all have their own global footprint, it is frightening how far business in the UK has come over the past 30 years and this rise doesn’t look like stopping.

One of the fundamental reasons for this is the adaptive nature of the country and business as a whole, the UK isn’t afraid to move with the times and adapt technologies and policy to move fluidly with the changing desires of its population.

There are many other factors as well that will be discussed in this article despite its main focus being on the future and where I see business in the UK heading.

We live in the internet age and thus this is going to be a major factor in the future shaping of business and what methods companies take in order to reach out to a wider client base.

Online

The majority of business in the UK is going to be online in the future that is the only way I can see things heading. The internet now has such a prominent role and this role is only going to increase as the years go on.

There are many companies out there offer online only services which is staggering considering what the business world was like 15 years ago. We live in an every changing world and business is just the latest passenger on this journey to efficiency.

Many businesses now internally run based on a cocktail of emails and software, just imagine what it is going to be like in 20 years, there will probably be robots doing the filing and fully voice automated computers.

Innovative Service

Companies are going to need to implement progressively innovative services if they are to keep up with the changes that are occurring. You will just not get the customers if your website isn’t up to scratch, it is essential that you invest early in your companies online profile if you are to be able to swiftly move with the times.

Check out the JaguarPC website to get a good idea of the cost of web domains and hosting as well as the potential addition of SEO services that can greatly increase the prominence of your company profile online. This is a service that is going to become increasingly important as the years go on and I think it should be taken very seriously as a concept.

Research has shown that the sites on the first or second page of a Google results page are more likely to receive hits than ones lower down.

Self Service

Business in the UK is just going to be come self-serviced, there will be no staff working at the tills and people will be able to purchase and collect their products (whatever they may be) on the same day within minutes.

It is the way things are now and if you don’t like it, I suggest you start liking it.

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Insurance For Small Businesses-Is It Necessary?

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Are you an entrepreneur running a small business? If so, then you need to purchase an insurance policy cover for your business. There is no need to be like any other entrepreneur who overlooks the need for an insurance cover since they tend to paint it as a ripe off and also as an impediment towards the realization of their business success. The reason is that there are always unprecedented risks in every business venture and purchasing an insurance policy is one way of planning to mitigate such risks otherwise when a disaster strikes your business will be grounded. Here is a look at some reasons why insurance policy for small businesses is a necessity.

Property insurance cover

Your small business property needs to be secured against losses from natural and man-made causes. This include the coverage of the building in which your small business is accommodated and all your assets in it such as furniture, inventory, supplies and office equipment. Therefore, if you decide to go for property insurance policies check their coverage. It is a wise choice to ensure you purchase such a policy for your business to help you in case there is a fire outbreak, embezzlement by employees or any other risk.

Life insurance policies

As it is important to secure your business property from damages, it is also essential to protect your interest and that of your family. You are the owner and as the man or woman in charge you don’t know what can happen to you in the future. This points out the necessity of a life insurance policy because in the event that you can no longer dispense your responsibilities well because of a misfortune your business interest will stay quite alive.

Liability coverage

This is another business insurance cover that is necessary for your small business. Disasters strike when you least expect them and it may harm or injure your customer or any other person that your business deals with. This insurance cover will help you mitigate such a risk by meeting the cost of damages, lawyer’s fee and any other costs involved.

Natural disasters

The location of your business might be a place that faces certain catastrophes at a certain time. For instance, it can be a place which is susceptible to fire outbreaks, floods, tornado, hurricane or any other disaster. Therefore, you need an insurance cover for your small business that will cater for damages as a result of such happenings so that you don’t regret when it dawns to you that your business was clearly destroyed by a natural disaster.

Protection of your business valuable records

Your small business must be having valuable business records that you don’t want to lose at all. However, with this technological world such a thing can happen probably when your computer malfunctions. Therefore, it is a necessity that you purchase valuable papers coverage to be at your rescue at all times. This insurance cover usually meets the cost of replacing all the important records to a certain limit.

Home-based business insurance cover

You might be running a small business online and the only place that you work from is your home. You should not be left out in purchasing an insurance cover for your home based business. This is because you are not exempted from facing risks that may threaten your business and this explains why you need an insurance cover.

Worker’s compensation insurance cover

Your small business might be having employees who assist you in day to day activities. Here, you won’t close them out of facing risks that may harm them when carrying out their responsibilities. For instance, your product delivery man might be bitten by a dog when delivering a certain product to a customer. You will have to pay for his medical needs if you are a caring employer. With a worker’s compensation insurance cover you don’t have to worry because all the medical expenses will be met by the insurance company. Additionally, this cover caters for lost wages for employees who are injured when dispensing duty.

Not unless you are among the ignorant small business entrepreneurs, an insurance cover for your small business is certainly indispensable. Essentially, all you need is to do go for the most suitable one for your small business. That way your business will run smoothly without fear of being closed down in case a disastrous event befalls.

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How To Reduce Your Property Tax Assessment

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These days, everyone is trying to save a couple of dollars wherever possible. Some people have sworn off movie theaters, saying they will only watch films on their screens at home. Other people have seriously cut down on the number of meals they eat at restaurants, recognizing that it is almost always cheaper (not to mention healthier!) to cook something at home. Buying in bulk has become standard for those who might not have even considered it ten years ago.

While these kinds of changes can help families and individuals pinch a few pennies here and there, they might only add up to a few hundred dollars saved over the whole year. What about those people who want bigger savings? Many of them are looking for ways to cut down major expenses like rent, insurance, and taxes. Reducing your property tax assessment is a great way to save money. Below are some tips to help you cut down your property tax assessment.

TAX ASSESSMENT TIP #1

Get a copy of your property tax card and take a good look at it. Many homeowners don’t even know that they can go down to their local town hall and request to see (or get a copy of) their property tax cards, which are usually held at the local assessor’s office. This card has information on it about the size of the property, the dimensions of the rooms, and the fixtures that are installed within the home. There may also be information about special features or improvements that were made over the years. Study the card and make a list of any and all discrepancies, then make an appointment with the tax assessor to go over them. You might be surprised how often mistakes occur and how easy it is to solve them and save money.

TAX ASSESSMENT TIP #2

Do some research on your neighbors. Besides finding information on your own home, you can usually also find information about your neighbors’ homes. Review the assessments done on your neighbor’s home and see if there is anything that would make a persuasive argument to lower your taxes. For example, does your neighbor have the same size home as you but pay lower taxes? Raise the issue with the assessor.

TAX ASSESSMENT TIP #3

Accompany the assessor when he/she walks through your home. It is a big mistake to let the tax assessor give himself the tour of your home instead of walking through with him. Some assessors will focus only on the homes’ strengths, like a newly installed sink or fireplace,  while ignoring the homes’ big problems, like a leaky roof or flood-prone basement. So walk through the home with the assessor and point these things out.

TAX ASSESSMENT TIP #4

Don’t enhance the outside of your home pre-assessment. This might seem obvious, but the nicer your home looks when the assessor walks up to the front door, the higher your taxes are going to be. Hold off on any property enhancements like paving the driveway or putting in a fancy new mailbox. These small changes can make a big impact on the tax assessor’s impression of the value of your home.

TAX ASSESSMENT TIP #5 

Always be polite, professional, and friendly. It can be easy to get yourself worked up over tax assessment issues. Statements like, “But my neighbor only pays half for the same size property” or “Our garage is 35 years old!” are frequently heard being yelled from inside the tax assessor’s office. But the people doing the yelling are not doing themselves any favors. Whether you’re sitting down with the assessor at his office or walking him through your house, always maintain a polite and professional tone. Don’t lose your temper. Offer him a beverage and a chance to sit down and discuss anything you disagree with instead of simply showing up at his/her office without an appointment and a with chip on your shoulder.

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Tips on Finding the Best Business Location

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Aside from an excellent marketing plan, your business location is one important aspect that you need to seriously consider for your new business venture. Your business location is where you conduct business most of the time, thus this should be the best and the right place to ensure success. Choosing a location for your business goes far beyond the aspect of price and space. There are number of things that you need to carefully look into.

Know the Need of Your Business

The needs of your business can easily be identified if you are already decided what particular products to offer. The following questions will help you come up with specific criteria:

  • How large is the place that I need? Do I need a room or a whole building or a building and an open space?
  • Are my clients coming over to visit the place?
  • How many anticipated walk-in clients will you have every day?
  • Does it need to be in the busy street or populous place or should be in a restricted area?
  • Will it be accessible to your stakeholders?

Identify Your Target Market

You need to know who will be your target market. Is your product viable to certain group of market? After you identify your possible clients, you need to consider the trend or the in-flock of the population around. Does the people around consist the greater majority of your possible customers? Maybe visiting a government agency that can provide you of the concrete and helpful demographic data will help you a lot. From there you will know if the people around will be your potential customers or potential workers. With this knowledge, you will know if your business is feasible or not as far as your target market is concern.

Accessibility of Your Business Place

Whatever your business is, this criterion is irreducible. Your business should be accessible to your customers and your stakeholders. This includes the traffic aspect, whether foot or automobile. If your business needs parking spaces for your client and customers then your location should include substantial parking area or at least a space near your location where the customers can park easily for free.

Conduct Feasibility Study

This will help you determine if your product or services being offered suit the need and the taste of the people around area. If it doesn’t, then maybe you are in the wrong place. It is important that your business should address the need of the community around. Your study should also cover the scope of business competition around the place. Will your business survive in the given competition?

Assess the Price

How much does this place cost you? Can the cost compensate with other advantages the location can give to your business? Remember, no matter how well and perfect the place or location is, if the price is very high then you might end up doing business for nothing. You will later realize that you do things not for your benefit but for the benefit of the place owner alone.

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Direct Marketing Company’s To Become Obsolete In 2014?

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Trouble is on the horizon for companies that rely on Direct Marketing practices, as a result of new regulations that are set to hit European countries in 2014. These new laws will affect direct marketing activities in which companies carry out on a daily basis and could result in many companies to fold.

New Direct Marketing Legislation

The UK’s Information Commissioner’s Office stated that changes to the way that direct marketing is carried out (B2C), must start immediately in order to be ready for when the regulations come into play. These new regulations include:

  • when consent is provided by the customer to receive direct marketing messages then further and separate opt-in will also be required in order to send any direct messages on any available marketing channel meaning consent for sending message directly to a person’s phone for example, will become much harder.
  • Companies and marketers will be required by law to obtain and keep a very detailed record of exactly when and how a customer’s consent was received. This is for the tight data collection measures coming into force.
  • Records of all consent gathered must further be available for on-the-spot inspections that can be carried out by the appropriate authorities at any given time. Regulators are not taking into account the cost surely to be endured for businesses to comply with these changes.
  • Marketers and/or marketing companies will not be allowed to use any type of incentive in order to get customers to opt-in for receiving information on services and products. Additionally, marketers will not be able to make statements such as, “by signing up you agree to…” and any opt-in option will be accompanied by a prominent opt-out box.
  • Also, any opt-in consent by consumers will only enable third parties to keep records for a maximum six-month period, which will inevitably result in any investment for compiling commercial data assets, very uneconomical.
  • If a brand owns or is part of a group of companies, each sub-company must obtain information separately; every company owned by one brand must receive the consent of customers to send direct marketing messages on an individual basis.
  • All list brokers and owners must by law, comply and deal with a much higher level of evidence that consent was received in correspondence with the regulations from each and every person on the list they have in their possession

These new rules and regulations for direct marketing could pretty much be too much for some companies involved with direct marketing.

Possible Data Protection Legislation

If these new rules and regulations weren’t bad enough for companies to adhere to, further restrictive rules and regulations are threatening to come into force, including:

  • If and when 5,000 or more consent records a year are processed and/or the records obtained are part of a more ‘sensitive’ nature, then the appointing of a Data Protection Officer will perhaps be required.
  • Risk analysis and Privacy Impact Assessments will more than likely to become mandatory
  • Companies will furthermore, be required to publish in much greater detail what the exact security measures have been enforced in order to protect customer data.
  • Satisfactory levels of insurance cover will also be needed to be taken out by companies, in order to protect Data Processors due to being likely to become jointly liable if and when a breach in data protection occurs.
  • Consumers will more than likely to have the right to erase their personal data from a company’s records whether third party or not, which will make copying consumer lists much harder for companies and marketers.

The EU legislators have been lobbied against by The Direct Marketing Association (DMA) in regards to the new legislation laws threatening companies involved in direct marketing practices. The DMA have demonstrated their concerns over the possible new, further legislation who claim that the EU legislators and the Information Commissioner’s Office are completely ignorant of the steep costs that these changes will incur in order to comply. Jobs and businesses will very much be at risk due to these potential changes.