As soon as you start operating as a business, it is important to keep track of the business' income tax obligations.
- Once the first tax year is over (for most businesses this is 31 March), the business will need to file a tax return to declare all gross income the business received during that year.
- You may also be able to deduct business expenses from the business' income, provided those expenses meet specific criteria. You may have provisional tax obligations too, as income tax may be due in instalments throughout the tax year. For that reason, it’s a good idea to save part of your income for your tax. You will then have all the money ready when the tax bill arrives, and maybe even some left over.
- For more information on your business income tax obligations, please refer to Inland Revenue guidelines, and/or talk to your accountant or tax advisor