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Tuesday, March 5, 2024

Pay heavy taxes? Here’s what you can do to save on taxes in the new year |

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save on taxes in the new year

No one likes paying taxes, but it is unavoidable and you should make your payments on time to avoid penalties. However, it’s important to remember that there are some important ways you can reduce your tax liability. There are plenty of options and tax planning strategies available to help you do this.

Today we’re going to take a look at some of the best and ultimately give you all the information you need when it comes to lowering and slimming down your taxes and making the most of the options available to you.

Pay the bill on time

One of the most common reasons why people and businesses pay more money on their tax bills is simply because they don’t get their returns in on time, and this causes them to be charged interest and/or fees. If you want to pay the lump sum, make sure you always pay your tax return before the deadline to avoid complications.

Invest in a plan

There are plenty of plans and schemes you can join to help reduce the amount of tax you pay, but this will depend on the country you are in and what you have available to you. For example, if you live in the UK, you can invest your money in a tax-free ISA plan. If you are in India, you can invest your money in a ULIP plan. ULIP plans can differ depending on what they have to offer, so make sure you do your research to see which one suits you best.

Make sure you are Pay the correct amount of estimated taxes

When you pay taxes, you are in a certain tax code that determines your 2022 tax bracket and therefore how much you have to pay. It’s always worth it checking this tax code every year and every time you make a payment, to make sure you pay the right amount, not too little and certainly not too much.

Claim all business expenses and deductions

You might be surprised at what you can actually do declare as operating expenses, which is then tax deductible, ultimately lowering your tax bill. Everything from real estate costs, stationery and even fuel for your company cars can fall under this category. That’s why it’s so important to examine every aspect of your business to get the most out of it. You also don’t want to pay tax where you don’t need to.

Claim back your overpaid taxes

Sure, you’ve probably been paying taxes for a while, but how do you know that the tax you’ve already paid has been the right amount? In some cases you may have paid too much tax, and it’s always worth checking whether you’re chasing this money and getting it back into your account.

Obviously this won’t reduce your current tax bill, but if you do get a refund, at least you know you’re paying the right amount and getting back what you owe to help pay for this.

Resume

As you can see, there are a few ways you can be proactive when it comes to saving money on your tax bill, but this depends solely on your business and what options are available to you. Be open and intentional about the decisions you make, and you will definitely save a lot of money in the long run.


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