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Claiming your business independence

Posted on September 19, 2016 by admin

Entrepreneurs are particularly independent. No matter how risky starting a business seems, for entrepreneurs, it is the route to the pursuit of happiness.However, while some started their companies to be independent, many may have lost that freedom along the way. If you allowed yourself to become subject to the petty demands of your business, it is time to come up with your own Declaration of Independence.

Here are some things to include:

If you get most of your income from one or two major customers, they control your future, not you. They can dictate the amount of your income, the security of your business, indeed, the quality of your life. You don’t want to lose these customers, but make it a priority to expand your base.

Successful entrepreneurs start their businesses by concentrating on one channel to reach their potential customers. They may target one specific industry or sell exclusively through one distributor. However, as your business grows, it is vital to diversify, so that if something unexpected happens, you can still survive.

Likewise, if you depend on only one or two sources for your critical supplies, then you’re at their mercy. Find other sources, and give them at least some of your business. Even if you’ve been using one source for years, ask from time to time for bids from other vendors. Stay flexible.

If your employees come to you for every little decision, it’s time to give them their independence and free yourself at the same time. Create a working environment that gives them responsibility and authority, making certain that employees are also given the training and support to handle such authority.

Being in business is never completely secure, but once past the start-up years, you should be able to free yourself from constant worry. Build a base of continuing customers or product lines. Set aside a cash reserve. Diversify your personal assets so you have financial resources in addition to your business.

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When do you have to pay tax on shares?

Posted on February 20, 2020 by admin

Investing in shares is a popular method of growing your wealth, however, there are tax obligations you need to be aware of to get an accurate sense of how much you’ll need to put aside for your investments.

When you own shares, you need to declare all your dividend income on your tax return. It is possible to claim tax deductions for certain expenses you pay to receive income from your shares. The deductions you are eligible for will depend on if you are carrying on a business of share trading or if you are an individual share investor, but they can include:

Individual share investors cannot claim a deduction for the cost of acquiring shares, such as costs for brokerage and stamp duty, however, they can claim deductions on the prepayment of expenses related to the shares such as internet fees or seminars.

Buying and selling shares can involve capital gains tax (CGT), depending on whether you make a capital gain or a capital loss on your shares. Your capital gains or loss is the difference between the price you paid for the shares and the price you sell them for. If you end up selling your shares for more than you paid for them, then you make a capital gain which may be taxed.

How much CGT you need to pay varies depending on:

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