The Successful Business Of Being A Tax Adviser
Everyone has to submit a tax return, but not everyone is familiar with how it should be done. There are of course professional accountants whose job it is to do this kind of thing, but they are quite expensive. To file taxes for other people as income can develop into a good part-time or even full-time career.
Of course you will first have to get yourself up to date with the latest tax laws and regulations. There are numerous books and courses about the subject. You have to know what type of income is taxable and what kinds of expenses can be deducted for tax purposes.
Then you've got to sit down with your client and get as much background information as possible. If his only source of income is a salary, and he has no out of the ordinary tax deductible expenses, filing the return will be a brief affair and an easy way to make money.
If your client earns a salary and he owns a part-time business as well, or even if he owns a full-time business, things get more complicated, especially if he runs his business from home. In this case certain expenses might be clearly private, while others might be clearly for the business. There will, however, always be a third category of "gray expenses" - which are partly private and party business related. Examples of these are when he uses the same cell phone and the same car for private and business purposes. You will sometimes have to apportion some of these expenses to business and private expenses in a way the tax office will agree with.
There might be other expenses which he can claim. If he has an office at home, he should be able to deduct all expenses related to that office from his income when compiling his tax return. This includes computers, printers, phone bills, electricity and related expenses.
Vehicle maintenance is another gray area. The regular service bills for the vehicle which he uses partly for private and partly for business trips, should be apportioned in a way which is acceptable to the tax office.
During the course of your new job, you will no doubt find that customers are prone to throw away cash slips which they should have kept for their tax records. This is an ongoing training process: you have to convince them how important it is to keep all those little slips!
Once you know the relevant regulations and you are familiar with the affairs of your clients, to file taxes for other people as income isn't rocket science: it simply takes an orderly approach and the ability to think logically.
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