Be sure that you deduct the agency fee as an expense against your freelancing income, as well as the other business related expenses.
Tax Thread for Influencers/Freelancers - Managing Finances:
Open a separate bank account, where all your freelance/bus income gets paid to and where you pay business transactions from.
This not only makes accounting easier, but shows the monthly profit you're making.
Be sure that you deduct the agency fee as an expense against your freelancing income, as well as the other business related expenses.
When you have lots of motor vehicle expenses, the logbook will allow you to claim a % of that expense.
Tax is always a % of an expense. See example in note 5
Person A
Income: 100k
Expense: 100k
Profit: 0
Tax: 0
Person B
Income: 100k
Expense: 50k
Profit: 50k
Tax: 15k
Better to get a 50k profit and pay 15k in tax than earn no profit and pay no tax.
Person B has a 35k better cash flow than Person A
A self employed person can claim business expenses just like a PTY can.
Should you which to get more specific advice, you should reach out to a consultant.
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I’m torn on how to approach the idea of luck. I’m the first to admit that I am one of the luckiest people on the planet. To be born into a prosperous American family in 1960 with smart parents is to start life on third base. The odds against my very existence are astronomical.
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
Ironies of Luck https://t.co/5BPWGbAxFi
— Morgan Housel (@morganhousel) March 14, 2018
"Luck is the flip side of risk. They are mirrored cousins, driven by the same thing: You are one person in a 7 billion player game, and the accidental impact of other people\u2019s actions can be more consequential than your own."
I’ve always felt that the luckiest people I know had a talent for recognizing circumstances, not of their own making, that were conducive to a favorable outcome and their ability to quickly take advantage of them.
In other words, dumb luck was just that, it required no awareness on the person’s part, whereas “smart” luck involved awareness followed by action before the circumstances changed.
So, was I “lucky” to be born when I was—nothing I had any control over—and that I came of age just as huge databases and computers were advancing to the point where I could use those tools to write “What Works on Wall Street?” Absolutely.
Was I lucky to start my stock market investments near the peak of interest rates which allowed me to spend the majority of my adult life in a falling rate environment? Yup.
