The Small Business Tax Help Blog

Posts Tagged ‘startup’

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Question: Does anyone know what import tax I’ll have to pay when buying small amount of jewellrey off ebay?

I’m buying from the USA, only cheap (about $5 each), but I’m buying about 10 at a time. I’m in the UK.

Does anyone know what import tax I’ll have to pay, and if there is a minimum weight or cost that will help me avoid paying tax? I’m not a business, just addicted to gemstone jewellrey!

Answer: Import Duty and Excise Duty

All goods, new or used, imported into the EU from outside the EU are subject to Customs Duty (Import Duty or Import Tax) and VAT (Value Added Tax) according to their value and import tax classification. All goods imported into the UK from outside the EU must be declared to HM Customs & Excise and in most cases this includes goods bought over the Internet.
» HMRC Customs Procedures

Business : Cutting UK company tax costs 3.5 bln sterling

BRIGHTON, England - Cutting British taxes on company profits would cost 3.5 billion pounds ($5.3 billion) each year, but it can be paid for by scrapping some Business Tax reliefs, the opposition Conservatives said on Sunday.

Colin: A new kind of Superhero

Question: Do I need a New EIN (Employee Identification Number)?

I’ve looked on irs.gov and can’t seem to find the answer. I don’t need a New EIN if I have multiple businesses but what if one of the businesses has a totally different name and line of work ex. Networking to Lawn Maintenance?

Answer: Yes, if you are going to do your accounting separately and file separate tax returns on each business, you need separate EINs. If all the companies are going to operate under the umbrella of one parent company - you can use one EIN. I think it can go either way - it is up to you how you do your accounting. I think it might be easier to have separate numbers.

Tax tips new business owners

Here are six tax tips the IRS wants new business owners to know:

Question: Any suggestions on this tax situation involving a small business? Details below?

The small business here is operating at a loss. The expenses exceed the income and the business is being propped up by loans from the owner’s savings. There are deductions for business expenses, but the business runs into the alternative minimum tax and not all of the tax Deductible Expenses can be deducted. Refunds (partial refunds) are frequently given to customers because they pay a deposit. The entire deposit is deposited when paid and is considered income. Though the partial refunds are “tax deductible” I am concerned because of the low income and high expenses making it impossible to get the full deduction for expenses. Any suggestions for making the best of this situation? Essentially, we sometimes pay tax on money that ends up being refunded to the customer. Thanks.

Answer: well, i know a guy who was audited for tax evasion, but ultimately was given a break.

He sells insurance as a broker and his broker fee is not fully earned until the whole insured period has passed. in some cases his clients cancel their policy before the say 12 months are up.

here is what he does and it was accepted by the auditor.

he puts all of his funds into his business account and transfers them out one month at a time into his personal account. anything transferred has been fully earned and thus taxable income.

if a customer cancels a 12 month policy say 6 months into the policy he will refund half of his broker fee (don't ask me why on this one...my agent only refunds unused months, but not any part of the broker fee).

he says those funds in his Business account are not his until he earns them so they cant be taxed as income. He holds them there and if a client cancels they can get their money back. it was never his.

well, he argued this case when he got audited and the auditor agreed!!!

this may be a way of accounting that can help you not get caught by the AMT net.

DuPont announces fourth quarter 2009 earnings

DuPont's fourth-quarter 2009 earnings were $.48 per share, compared to a fourth-quarter 2008 loss of $.70 per share. Excluding significant items, fourth-quarter 2009 earnings were $.44 per share versus a $.28 per share loss in the prior year (see Schedule B.).

Insurance Tips for 2009

Question: Do I need a EIN # to do my deceased mothers taxes?

I am getting together my mothers paperwork for taxes and I know they will need a death certificate to do her taxes for me, she died on Dec 29 2008, do I also need a EIN number from the IRS or anything else?

Answer: Income up through the date of death goes on the 1040.

Income AFTER the date of death goes on the 1041. If you have $600 or more of income (or it looks like it), you will need to file the 1041 and that needs an EIN. The 1041 is either calendar year (2 days in 2008 shouldn't create a filing requirement for 2008) or fiscal year.

You may need the EIN for the estate to transfer title of assets. (Unless, of course, her estate was worth more than $2million.)

See the 1040 instructions for special notations you put on the tax return. If there is a refund and no spouse, include form 1310.

Household-help tax deadline Feb. 1

Did you hire someone to help around the house? Then you could have some tax housekeeping to do by Feb. 1.

Amerika's Freiheit zum Faschismus (America's Freedom to Fascism) by Aaron Russo 9/11- Deutsch

Do you need tax help? Do you need help with the IRS or state and need someone to save you? Or is tax season coming around and you didn’t like the job your last tax preparer did? Maybe you just don’t have time to do it yourself anymore, or this is your first time? How would you go about to find the perfect tax professional?

First we must consider what the “perfect tax preparer” is. What do you want? Everybody wants at least three things from a tax professional:

Of course, in this economy, most people don’t have money to spare! That means that most likely, you want a fourth thing from that tax professional. But of course, you want your dealing with that professional to be pleasant–as unpleasant as taxes are. I know. When I got that first paycheck…”WHAT??? I lost 10% of my paycheck in withholdings to the IRS?” So lets add to our list:

How do you find that “perfect tax professional”-The Perfect Tax Professional is honest and fits the guidelines above. Here are some tips.

Now that you know what you want, its time to search, It’s well worth it to get a trustworthy tax professional that you can use for years to come. You must decide whether you want to use a big tax company, or a small one. Small tax companies can; but not always are; more personal and less expensive. They may not be as reliable or quick as a larger entity however. If you happen to have tax professionals available locally, check them out first. There is nothing quite like that same-town feel.

Since you want your tax problems solved right, quickly and confidentially, you need to find an experienced and trustworthy profession or firm. Because you want a pleasant and personal, after you find several professionals with good client testimonials and 10+ years of experience: visit or call them up and inquire about their services. If they or their staff seems friendly and knowledgeable, mark them as your potential preparer. Talk to their clients, if possible, and see what sources recommend them.

If you’re looking for someone online, look at their web page. If it has blatant advertisements, or exaggerated self-promotion, move on. If the tax professional has a video they did themselves, watch it so you can get an idea who is behind the email or phone. It’s common sense! Ask yourself “Does this company look like one I want to deal with, one who may fit the bill above?”. Of course you probably want to check out their prices as well. If the prices aren’t listed contact them and ask.

You can also use free tools like Macafee site advisor (check site report) to check what the web page is linked to. If the web page is directly linked to all kinds of other tax sites, one company or person probably owns them all. Move on. Don’t trust companies that link to bad or dishonest sites either.

I commend you on your wise decision to help yourself and save yourself trial and hardship in the future.

Recent Tax News

County reopens its grant program to help small businesses

location Miami-Dade CountydnewsNORTH MIAMI-DADE It’s that time again to apply for the Mom and Pop Small-Business Grant Program, which assists small ventures with less than seven employees by giving them up to $5,000.

Ranking Member Sam Graves (R-MO) speaks on House Floor about the estate tax and small business