TAX PLANNING WITH THE SELF-EMPLOYED OR BUSINESS OWNER
Filed Under Tax · Tagged: self employed, tax planning
Self-employed people or business owners have a great edge in tax planning over the employed. They get to deduct expenses from their income and pay less tax later, whereas the employed do not get to deduct expenses from their income and have to pay tax on every pay cheque.
Here are the many ways for the self-employed and business owner to save on tax:
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Structuring
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Deducting business expenses
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Use dividends
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Make spouses and dependents over 18 shareholders of the corporation
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Pay family members wages
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Utilize shareholder loans
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Utilize Private Health Service Plans (PHSPs)
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Always stay under the “Small Business Deduction Limit”
I’ll be writing more about these tax saving strategies for the self-employed and business owners in my next blogs. Check back here next week!
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