How can I best plan my taxes as a self-employed individual?
March 21, 2022 | 50,00 EUR | answered by Robert Lehmann
Dear tax lawyer,
my name is Renate Hofstetter and I am a self-employed entrepreneur in the healthcare industry. In recent years, I have been doing my tax returns myself, but I realize that I am losing track and unsure if I am doing everything correctly. I have heard that there are different ways to plan and optimize taxes as a self-employed person, but I don't know where to start.
Currently, I pay my income tax quarterly and keep records of my income and expenses. I have also registered a business and I am subject to VAT. In recent years, I have made profits, but I want to make sure that I am not paying more taxes than necessary and secure my financial situation in the long term.
My concerns are that due to ignorance, I may overlook tax benefits or opportunities for tax optimization and thus unnecessarily give away money. I would like to know what steps I can take to optimally plan my taxes as a self-employed person and what mistakes I should avoid. Are there specific forms of accounting or tax returns that are particularly beneficial for self-employed individuals? How can I structure my income and expenses in a way that puts me in a better financial position and reduces my tax burden?
I look forward to your expertise and recommendations to efficiently plan my taxes as a self-employed person and improve my financial situation.
Thank you in advance.
Sincerely,
Renate Hofstetter
Dear Mrs. Hofstetter,
Thank you for your inquiry regarding the optimization of your tax situation as a self-employed entrepreneur in the healthcare industry. It is understandable that you are considering whether you are utilizing all possible tax options and planning your taxes efficiently. As a tax attorney, I am happy to assist you and provide you with some recommendations on how to optimize your tax situation.
First of all, it is positive to hear that you pay your income tax quarterly and keep track of your income and expenses. These are important steps to fulfill your tax obligations as a self-employed individual. However, there are additional measures you can take to reduce your tax burden and improve your financial situation in the long term.
One way to optimize your taxes is to take advantage of tax depreciation opportunities. As an entrepreneur in the healthcare industry, you could benefit from depreciating medical equipment or practice furnishings, for example. By utilizing these depreciation opportunities, you can lower your tax burden.
Furthermore, I recommend that you inform yourself about possible tax benefits and incentives for self-employed individuals. There are various tax benefits that can benefit self-employed individuals, such as the investment deduction for planned investments or the profit exemption for small businesses.
Regarding bookkeeping, I recommend maintaining proper and structured bookkeeping. This not only facilitates the fulfillment of your tax obligations but also helps you keep a better overview of your financial situation. Good bookkeeping can help you avoid potential tax pitfalls and plan your taxes efficiently.
In addition, I recommend working regularly with a tax advisor. An experienced tax advisor can provide you with individual recommendations on how to optimize your tax situation and what tax planning options are available to you as a self-employed individual.
Overall, it is important that you actively engage with your tax situation and regularly inform yourself about possible tax optimizations. Through structured bookkeeping, the use of tax depreciation opportunities, and collaboration with a tax advisor, you can reduce your tax burden and improve your financial situation in the long term.
I hope these recommendations are helpful to you and I am available for further questions.
Best regards,
Robert Lehmann
Tax Attorney
