What you owe.
WHY IT MATTERS
Business owners frequently discover liabilities they did not provide for.
WHAT APPLIES DEPENDING ON STRUCTURE
Sole trader: business profits are taxed as your income
Company: salary is taxed as employment income, dividends separately
WHAT THAT MEANS PRACTICALLY
The structure changes what you owe and when.
WHAT TO ESTABLISH
Whether you must register and file personally When payments are due How they are calculated
WHAT TO DO ABOUT PROVISION
Set aside a proportion of every payment received.
HOW MUCH
Enough to cover the expected liability, with margin.
WHERE TO KEEP IT
A separate account you do not touch.
WHY SEPARATE
Tax money in a working account is spent.
WHAT PEOPLE COMMONLY GET WRONG
Treating gross receipts as income Forgetting that tax on this year's profit falls due later Spending money that is already owed
WHAT TAX CLEARANCE IS
Confirmation that your affairs are in order for a period.
WHY IT MATTERS PERSONALLY
It is required for various applications, including some visas and property transactions.
WHAT IT REQUIRES
Returns filed and liabilities settled.
WHAT TO DO
Keep filings current, so obtaining it is routine.
WHAT RECORDS TO KEEP
All income Evidence of allowable costs Evidence of tax paid
HOW LONG
Per the required retention period.
WHAT TO ARRANGE
An accountant, once income is regular.
