1. Keep Good RecordsThis is essential for accurate tax reporting and minimising your tax liability. In Ireland, you need to keep records for 6 years, including:
- Sales invoices
- Expense and purchase receipts
- Accounting books
2. Claim all your deductionsYour Accountant will help ensure that you are claiming all of your deductions, such as rent, utilities, advertising costs, capital allowances or start-up reliefs if applicable.
3. Stay up-to-date on the latest tax lawsThe tax code is constantly changing, so it’s important to stay informed. At Nexus Accounting, we proactively keep our clients informed, but we also regularly publish news on our blog, which is available to everyone. Look out for our Quarterly Newsletter, which includes sections for Tax Briefs and Legal Briefs.
4. Hire a qualified accountant
An accountant can help you with your taxes and ensure that you’re compliant with the law.
5. Use tax planning strategies
There are a number of tax planning strategies that can help you save money. Perhaps most importantly, choosing the right business structure can have a significant impact on your tax liability. If you are a sole trader, you will be taxed on your personal income, while if you are a limited company, your company will be taxed separately. Read our separate guide Sole Trader vs Ltd Company for more information.
6. Put tax aside
If you are self-employed, it’s a good idea to set tax aside throughout the year (including VAT, if applicable). This avoids the shock of the cost when due.
7. File your taxes on time
Filing your taxes late can result in penalties and interest. Your Accountant will help you adhere to these deadlines, but ultimately, you are responsible, so it is a good idea to keep a calendar of key dates. We publish key dates in our annual tax booklet and quarterly newsletters, which are available on our news page.
8. Don’t be afraid to ask for help
If you’re not sure about something, don’t be afraid to ask your accountant or Revenue for help.
9. Stay organised
The more organised you are, the easier it will be to file your taxes and stay compliant. Simple tips and best practices include:
- Saving all receipts electronically as soon as you receive them, organised by date (remember to save a backup if you are storing on your home computer)
- If you aren’t yet using accounting software, a spreadsheet to log all sales and purchases is a good starting point
- Save the key accounting dates to your calendar
- Add reminders to your calendar for regular events such as filing VAT returns
- Set time aside in your calendar for accounting activities
10. Don’t panic
Tax can be complicated, but it’s important to stay calm and organised. If you find tax overwhelming or you are simply too busy running your business, consider working with an accountant that can help ease the burden.
By following these top 10 tax tips, you can save money and stay compliant with the law. So don't wait, start following these tips today!
If you need help with your taxes, contact our office today. We’ll be happy to help you save money and stay compliant.