You may have been doing your own taxes for years but have decided that it’s time to outsource the work to someone else. A tax professional can find tax breaks that you may not be able to spot on your own. They are also aware of subtle changes to the law that might otherwise take you by surprise. Some people are deterred by the fees charged by tax experts, but you can deduct the cost of paying someone to do your taxes for you. Before you decide on someone to do your taxes, take the following into consideration.
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We would all love to save on our tax bill. For one thing, no one likes forking out twenty per cent of their wage even if it is the law. But, more importantly, the money we spend on taxes is our largest outgoing. If we could cut that, we cut save ourselves a fortune. How do you do it without ending up in a jail cell? Just follow these simple tricks.
Top up your Pension
The amount you pay into your pension is taken from your yearly earnings, and that figure is then taxed. What’s the result? You pay far less tax than you would do without paying into your pension. For example, say you earn $40,000 a year and pay 20% in tax, you will pay around $6,000. But, if you pay $1,000 into your pension and then get taxed on $39,000, you will only pay $5,712 in tax and save around $300.
$300 a year is a lot of money that you could spend on a holiday. So, instead of paying tax, spend two weeks of the winter in sunnier climates.
If you are – or were – an expat living in a foreign country, it’s not uncommon for you to feel overwhelmed by an entirely new tax system. Many expats who have lived and worked in the UK don’t know that they could be due a tax refund, let alone how to claim it. Here we explain the two ways to claim back your UK tax refund.
What is a tax refund?
A tax refund is a repayment of PAYE tax that you have overpaid during the tax year. You might be eligible for a tax refund if:
- You’ve only worked for part of a tax year
- You’ve worked for more than one employer in a tax year
- You’ve had two or more jobs at the same time
- You’ve been taxed on a basic rate tax code
- You’ve left the UK before the end of the tax year (6 April – 5 April the following year)
- You’ve been on an incorrect tax code at any point in the last five years
In order to get your tax refund, you need to claim through an agency or take the solo route by claiming through HM Revenue & Customs (HMRC). The route you choose to claim your refund depends completely on your personal preference and what works best for you.
The people of America have felt the full impact of the financial crisis. Many have had trouble finding money to cover the bills and luxuries to which they’d previously been accustomed. There has also been an increase in the number of redundancies as companies have attempted to keep their costs to a minimum. The government has added to the pressure by making cutbacks and demanding the payment of taxes. However, the Internal Revenue Service (IRS) has played a key part in enabling people to pay their taxes. They are hoping that the American citizens will take the opportunity to manage their outgoings.
It is now possible to pay taxes in regular installments meaning that people don’t have the worry of having to recover from a huge splurge. They can pay an agreed amount each month however, it is worth bearing in mind that individuals who are unable to keep up with regular payments may not be granted tax relief. They are likely to accrue sizable debts, which must be repaid in the long term.
Details of the IRS Agreement
As previously specified, the IRS agreement details the payment of taxes over a defined period. It is a means of clarification for individuals who may be unsure of their financial responsibilities. A payment schedule is included in the main document for reference by the tax payer. There are also details of the actions which will be taken if payments aren’t made on time. In certain circumstances it may be possible to obtain an offer in compromise. This means that IRS will demand a reduced amount. However, the tax payer must prove that they meet strict criteria if such an agreement is to be made.
When it’s time to move to another house or even another area of the country, although the transition of entering into a new season of life can definitely be exciting, if there’s one thing that no one really looks forward to (and may not have created a budget for either), it would have to be incurring additional moving expenses. Although it is one more expenses that can be quite a bit of a pain, you can save a substantial amount of money by simply being prepared.
Below are some tips on how you can make moving much less stressful by making it as inexpensive and as smooth a process as possible:
Learn about your local moving companies. Whether you’re moving to Spain and need to research removals to Spain, or even if you’re moving a short distance, you may end up paying more than you had to if you would have simply done a Google search and looked up the moving companies in your area. So, spend some time looking at their hourly rates and mileage rates and comparing them with other companies. That’s a better way to get a good price. Also, it’s good to know ahead of time that movers tend to charge more money during the summer, on the weekends and during the holiday season. So, if there’s any way that you can move around those dates, you’ll be glad that you did. If you’re not moving far, don’t be afraid to simply ask friends and family members to help you move. They will likely be glad to help you out and this route will save you a lot of money.