The Small Business Tax Help Blog

Archive for August, 2007

Question: Remember when Obama said this? #5: “…give small businesses a tax credit for every new hire over 2 years?

This is part #1 of Obama’s 30-minute infomercial. Fast forward to about 5.07:

http://www.youtube.com/watch?v=dCx8oeg3nTo

What credit is he talking about, and when did it happen?

Answer: After 9/11 Bush said; “We will get the people responsible” yet invaded Iraq and let the war in Afghanistan go to poppy seed.

What was your "question"?

Edit:

Opps. my bad, It looked more like a rant to me.
No.. I don't remember #5

Obama awards $2.3 billion clean energy tax credits

WASHINGTON (Reuters) - U.S. President Barack Obama unveiled a $2.3 billion tax credit on Friday to boost jobs by promoting clean energy, as new data showed the country's unemployment rate remained stuck in the double digits.

Real Tax Cuts Making a Real Difference

Question: Help with starting up as a Sole Trader?

Hi people

About to start my own business, design work on my home computer in the evenings whilst continuing with the day job just to earn some extra beer tokens.

I have been to businesslink.co.uk and see that my best solution is a Sole Trader. So will fill in form and register.

What happens next. Do I just start? Not registereing for VAT – dont and wont earn 64k. But how do I invoice? Does my invoice to the client just say :
To prepare company stationery: £so many pounds.
And leave it at that? No VAT mentioned whatsoever?

Also say I earned £100 on a job. Do I then put 25% of this away for end of the year when the tax man comes a knocking?

This is my first night looking through this, just need a few tips please. I am constantly searching the web but a few friendly (or fiendly considering tomorrows halloween!) would be great.

Many thanks
Tony

Answer: Go to:

http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml

and you'll a lot of very helpful information which should answer many of your queries.

My accountant recommends that small businesses put away 20% of net income in readiness to meet tax bills.

It may be worth registering voluntarily for VAT. Please have a look at something called the Flat Rate Scheme (details on HMRC website) to find out more. Record keeping is very simple indeed and it could work in your favour depending on how much VAT-able stuff you buy and how much VAT your charge to customers.

If you decide not to register for VAT, you simply don't mention it on your invoices. If this is queried, just tell the customer the truth: that you are currently below the level for VAT registration.

Good luck!

Small Business Owners Protest Tax

PLYMOUTH, N.H. -- A big turnout at a hearing in Plymouth to discuss the controversial LLC tax. Fifty small business owners boarded a bus in Bedford in order to drive to the hearing together.

Home Business & NetworkMarketing Tax Tips

Question: Can a UK company get a US tax ID or EIN number from the IRS?

It’s okay, Ive sorted it, I got one.
Don’t think I was clear enough with the question but the answer is ‘YES’ a UK company can get a US tax ID or EIN number. To the people who answered my question. There are many, many reasons why a UK company might wish to get their own US tax ID. My reason is because I get my stock from the US and 90% of my customers are in the US% and my fullfilment company is in the US.

Answer: If you are a UK company and do not presence is the U.S., then you do not file the US taxes, so you do not need tax ID or EIN.
You will not get it.

PayPal Asks Sellers to Provide Tax ID Numbers

PayPal asked sellers to add their tax ID numbers to their accounts if they fall under the requirements of a new IRS reporting rule.

Utah County Tax ID (APN) Number Search

Question: Small Business Tax Deductions forwarded to 2010?

If i open a business today and inccure $10,000 in cost to deveolp my software concept and file it on a 2009 tax report and have no income, can i forward those losses and deduct them on 2010 taxes. I am filing for an LLC in florida

Answer: first of all you are not established enough for an LLC to be of much value to you except cost money

if your business has not had any income, all your expenses prior to actually opening the business are preopening expenses and will be amortized over a 5 yr period when you do file
go to www.irs.gov and request a Publication 34 for small businesses

Nurse Outduels IRS Over M.B.A. Tuition

A Maryland nurse defended herself against the IRS's lawyers and won -- getting a ruling to deduct the cost of an M.B.A. degree.

Tax Time