Death and taxes

by Martin Reed on 15 March 2007 in Snippets

There are three things that are certain in this world – death, taxes and the fact you CAN build a successful online community if you work hard ;)

I have been reading a few blogs of late which talk about tax. Unfortunately if you are making money online, the government will no doubt want a slice of it. Tyler Cruz recently got a shock when he found out his tax bill will come to around CDN$30,000 (that’s around £13,000) due to the fact he not only has to pay his outstanding liability for the past tax year, but he also needs to pay additional tax ‘on account’ for the next tax year.

Fortunately Tyler regularly pays a proportion of his online earnings into a ‘tax account’ – something which I also do and strongly recommend everyone else does too. Every month I work out my total income, then immediately put a minimum of 25% away into a savings account ready for when the tax man comes calling.

Not only does the money in the account earn me interest, it also softens the blow when it comes to coughing up my heard earned money! Tax time is always a headache – by preparing for it in advance, you make things easier for yourself and also earn a nice little slice of interest in the process too. If only I could be more organised with my monthly invoices and receipts!

In conclusion; get working, get earning, get saving … oh, and try to have some fun when doing it!

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Tom August 11, 2009 at 11:20 pm

Like hell if New Labour is going to get any of my money!

I’m going to become a tax exile in Switzerland.