An article by Ulrike Hudelmaier, Managing Director of TFU
It’s no coincidence that TFU has featured the goal of all our efforts in the header: the relaxed entrepreneur. But in order for you to develop creative ideas for your future with the same positive mindset, you’ll need to roll up your sleeves and get involved yourself. For example, by keeping your taxes under control.
The tax return was due on June 2 this year. If you haven’t finished it yet, nothing really bad will happen; if you seek advice from tax professionals, the filing deadline is still a ways off anyway.
Still, taxes aren’t half as complicated as they’re often made out to be, and it’s always worth staying on top of things yourself. Even tax advisors tend to put off clients who don’t show an interest themselves. If it ever gets to the point where the tax office has to estimate your tax liability, you’ve made some really silly mistakes that will cost you a lot of money.
So make sure you stay up to date. It’s not difficult at all:
- Organize Your Receipts
- Post regularly (at least once a month)
- Estimate Anticipated Tax Liabilities Early On
- Set aside money for taxes when you have it—that is, from every source of income
Tinkering with sales tax revenue is off-limits; “forgetting” about one’s own anticipated income tax liabilities isn’t particularly wise.
Motivate yourself by simply looking at things from a different perspective than most of our fellow citizens. Be PROUD that you are able to pay taxes. Anyone who pays taxes has earned money beforehand—and significantly more than what goes back in taxes. So, through your success, you’re contributing to the success of our community. If that isn’t a reason to be proud of yourself!
Of course, you don’t want to pay more than necessary. But don’t let your obsession with “saving on taxes” lead you to fall into the many traps that exist solely because it’s supposedly so cool not to give the government its share. Just try calculating how much energy, time, and often money it costs to explore every little loophole (which can often be quite legally questionable). Instead, invest that effort in your business and your self-employment—and relax: even if you happen to pay a few euros too much once in a while, so what?! When you weigh the costs in terms of time, energy, and money, the balance will almost certainly still tip in your favor.
So, don’t put off your taxes—just get them done. And then relax and get creative.
