PPS Cognition 3 - Page 12

UNDERSTANDING TAX RETURNS TO HELP YOUR BUSINESS E very business, regardless of its size, location or type, must file a tax return. When I meet with a client who is opening their own business, one of the first things I determine is: what kind of legal structure is best suited to their needs and how it will impact their earnings. ORDINARY which is income received after expenses, also known as nett income. CAPITAL the earnings you receive from the sale of assets. Charitable gifts and donations PPS | COGNITION | EDITION 3 | MAXIMISING your finance for today Tax preparation fees Business travel expenses Y ou must keep receipts and proof of these expenses for a comprehensive tax assessment which could result in a tax refund. Also, make sure you file your tax returns on time to avoid charges and penalties. Even if your business is not generating profit in the first couple of years, you must file a return. Certain losses may be used to offset profits in future years. PASSIVE the income you receive from investments, e.g. interest, dividends, rental income, etc. As a business owner, it’s important that you understand the basics of tax planning. This includes how your income is taxed, and how you can best reduce your liabilities, particularly on three major categories of income: PREVIOUS Retirement annuity contributions As a practising professional who may be running your own business, remember to keep your eyes on strategy and the welfare of your customers and profit, while leaving day-to-day tax matters and tax priorities in the hands of a specialist. Tax can be complex and daunting, so why not have a qualified PPS tax practitioner take care of your tax, leaving you to simply enjoy the returns. Need assistance with your tax returns? Contact your qualified PPS tax practitioner Rate this Article 12 13 Yazeed Davids Tax Specialist, Support Services Support Services NEXT NEXT PPS | COGNITION | EDITION 3 | MAXIMISING your finance for today