It’s always the first thing in business, whether you are a freelance sole trader or a huge business, it is always advisable to keep any receipts.
Most people are confused by what they can and can’t claim for in business, but the best thing to do is simply everything you pay for, especially when it comes to petrol, anything purchased specifically for the business.
Now, if you are completely confused, there are always sites which offer advice and you can sometimes have a free consultation with an accountant so you can see exactly what you need to do when it comes to doing your taxes.
When it comes to taxes, any expenses will be put against your tax. But there are some things that can and can’t be put against tax, but the reason we’re talking about this, is generally when you put money aside for tax (and you should be doing this, generally a quarter of any payments) you may find that when you have your accounts done and any tax returns, you may end up paying less than you expected.
This can be a bonus, but if you are not organised things may go the opposite end of the scale.
When it comes to tax, if you haven’t kep money aside (which really any business should) and you need some cash up front to pay for your taxes, you can always use any invoices you have to send out to clients and use the capital in those invoices to pay your taxes. This is called factoring, selective factoring and invoice discounting and it is the way things are moving when it comes to alternative funding.
Its quick, it’s simple and it is very cost-effective, you will have the money in your account within 24 hours and you can pay your bills pronto.
Just make sure you keep your receipts.