Tax Tips For Self Employed Gardeners

Tax Tips For Self Employed Gardeners

Now that the sun is shining, you’re probably going to be a bit busier, so it’s important to keep control of your earnings and understand the tax side of things if you’re a self employed gardener.

As a self-employed gardener, there are several ways to trim down the amount of tax you pay every year. It is just a matter of knowing where tax deductions apply.

Tax Deductibles for Self Employed Gardeners

From Business tax

You can take business deductions for everything ordinary and necessary in running your business. From gardening tools to employee wages, you are eligible for tax deductions. Capital purchases, such as buildings, machinery and vehicles, are also tax deductible. You can spread the deduction of a capital purchase, according to the number of years a particular item is expected to last.

From vehicle tax

You can take tax deductions for vehicles used for business. However, if the same transportation is used for personal use, deductions only apply to the miles you drive for business. It is important to keep clear records of all tax deductions, whether small or large, especially with vehicle use tax deductions, since you need to establish miles driven for business and personal needs. Without clear records, you could lose a chance to trim down tax payments. All business-related costs must have receipts as well.

Business income reporting and tax payment

You are considered a self-employed gardener if you are in business for yourself as a gardener. This means you need to report your income to HMRC. It is important that you file your quarterly estimated tax payments according to the schedule set by the tax people. In addition to the business income tax, you also need to pay self-employment tax that includes Social Security and Medicare.

Think you may be due a tax refund? Apply here to get your tax back.

Photo by Boris Debusscher on Unsplash

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