As the tax system is progressive, it does not matter when you make your money - just as we saw in the first tip regarding tax. sale of loss-making shares.
A low income for one year followed by a high income for another year thus potentially results in a much larger tax payment than if the two incomes were equal.
This is especially a disadvantage for individuals who run sole proprietorships, as profits as a self-employed person are often quite volatile.
If you have made a lot of money this year, and may not have the prospect of earning as much next year, you can therefore try to push some of the income until the new year. If you are self-employed, you may have to wait to complete some work by January. And if you are an employee, you can possibly wait to work overtime until the start of the new year. From the Chartered Accountant Watson you can find the best bets now.
Conversely, you can also look at your expenses and consider if there is something you should invest in and get a deduction for already this year.
Have service or crafts done at home
You can receive a craftsman's allowance (service allowance) of up to dollar 18,000 (incl. VAT) in 2018 for work pay for service and crafts services in your home or holiday home.
The deduction is for all members of the household who have reached the age of 18 by the end of the year at the latest. A married couple / cohabiting couple can thus receive a deduction of up to dollar 36,000.
You can get the craftsman's allowance in 2018 under the following conditions:
The work must be paid for digitally
If your parents are pensioners, they must receive up to dollar 11,000 tax-free in 2018 to look after children, arrange the garden or do cleaning. You can get a deduction for this payment as a craftsman's deduction if certain conditions are met and a declaration is completed.
Purchase of machinery and equipment
If you buy larger machinery and equipment for the business, you often cannot get the full deduction right away, as you will instead have to write off these assets over a number of years.
In order to write off machines and fixtures, they must be:
Check the advance statement for 2019
You should already now check your advance statement for 2019 to ensure that it reflects your expectations for the year. Otherwise, you end up losing a lot of liquidity to the tax - or get a residual tax with interest.
A low income for one year followed by a high income for another year thus potentially results in a much larger tax payment than if the two incomes were equal.
This is especially a disadvantage for individuals who run sole proprietorships, as profits as a self-employed person are often quite volatile.
If you have made a lot of money this year, and may not have the prospect of earning as much next year, you can therefore try to push some of the income until the new year. If you are self-employed, you may have to wait to complete some work by January. And if you are an employee, you can possibly wait to work overtime until the start of the new year. From the Chartered Accountant Watson you can find the best bets now.
Conversely, you can also look at your expenses and consider if there is something you should invest in and get a deduction for already this year.
Have service or crafts done at home
You can receive a craftsman's allowance (service allowance) of up to dollar 18,000 (incl. VAT) in 2018 for work pay for service and crafts services in your home or holiday home.
The deduction is for all members of the household who have reached the age of 18 by the end of the year at the latest. A married couple / cohabiting couple can thus receive a deduction of up to dollar 36,000.
You can get the craftsman's allowance in 2018 under the following conditions:
- The work was completed in 2018
- The bill has been paid no later than 28 February 2019
- Remember that you must be able to document the work with an invoice (from a company) or a written statement (from a private person)
The work must be paid for digitally
If your parents are pensioners, they must receive up to dollar 11,000 tax-free in 2018 to look after children, arrange the garden or do cleaning. You can get a deduction for this payment as a craftsman's deduction if certain conditions are met and a declaration is completed.
Purchase of machinery and equipment
If you buy larger machinery and equipment for the business, you often cannot get the full deduction right away, as you will instead have to write off these assets over a number of years.
In order to write off machines and fixtures, they must be:
- Delivered to an ongoing business
- Intended to be part of the company's operations
- Completed to such an extent that it can be included in the operation
Check the advance statement for 2019
You should already now check your advance statement for 2019 to ensure that it reflects your expectations for the year. Otherwise, you end up losing a lot of liquidity to the tax - or get a residual tax with interest.
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