The Boring Legal Stuff That All Work-From-Home Moms Need to Know About
There are many money making side gigs for stay-at-home moms. They can create and sell products such as handicrafts. They can blog. They child mind. They can dog walk. They can do just about anything they want to. So, if you’re a stay-at-home mom, and you’d like to make a bit of extra income during your daily free time, then go ahead and do it! But just be warned, by doing so and by setting up your own training business, you will be faced by a number of legal and financial matters that simply must be dealt with. Read on to see some of these matters.
Simply, your self-employed business, no matter how big it is, must be registered to the proper authorities. If you make any money for a business or if you trade under a business umbrella, the authorities must know. So, you must register your business with them. In the UK, for instance, this authority is known as the HMRC and every business — big or small — started up on the British Isles must make themselves known to them.
Pay your taxes
Everybody in employment must pay tax (unless you live in a country known as tax haven, such as Monaco), even those in self employment. Even if you’re a solo contractor or freelancer, if you provide and supply a service of any kind, you must be taxed for it. So, get yourself declared when it comes to your tax!
But if you’re dead set on being taxed less, then fear not as there are ways to cut down on your taxes legally. Some of these ways include: properly managing all of your deductible expenditures, paying off any mortgages that you have looming over you (in and out of business), making sound investments that pay you back consistently, staying atop of your bookkeeping, claiming for everything that you are entitled to claim for and having as much help provided to you as possible by tax advisors and specialists.
Keep a record of everything
So as to ensure nobody can claim any wrongdoing on your part in regards to paying taxes and other expenditure, make sure you keep a record of everything that you do. This could mean printing off any and all invoices you send off to those you are contracted to work for or those that are contracted to work for you. Or it could mean using a check stub generator in order to create for yourself the part of a check designed for record keeping purposes. By doing this you ensure you keep all the vital information that comes with payroll checks, latest pay checks and any other payments made to date.
Working from home is not all sunshines and rainbows. It’s not all about settling down to work in the comfort of your own home once the kids are at school and the other half at work. It’s not all about doing your work, in your time. No, self-employment and contracting work brings with it a rather tedious but very necessary legal side. And if you want to continue trading as a self-employed individual, you simply have to comply with this legal side of things — no matter how boring they may be!
How do you keep track of your income for tax purposes?