[OT] How to work with tax autorities (was: Thoughts about Whether to Become Independent)

Hello,

Since this is becoming a thread in itself, allow me, as a freelancer for 
something like six years, tell me what it means in terms of formalities.

As for issuing invoices and receipts: Forget about software. You go to 
Office Depot, pay some 200 NIS and get your personalized invoice and 
receipt books (preferably separate), and that's the end of story. When 
working with hitec companies, there are few invoices to issue, so there 
is zero reason to do anything else than what the tax authorities are 
best acquainted with.

As for the routine: Once a month (for some it's once in two months) you 
go to the post office and pay taxes according to a percentage of your 
total invoice sums for that period. It's very simple math, but it's 
important not to forget to do this in time.

The second piece of routine is to make an annual report, which, well, is 
done once a year. I let my accountant do it for me. It should cost 
something like 2000-3000 NIS per year, but in many cases it pays off, 
not to mention that you have someone to call up during the year to ask 
if there is something special you should do when buying a new cellphone 
(don't ask me, I forgot). And you would also like to have someone to ask 
why Bituach Leumi has suddenly decided that you owe them 30,000 NIS. And 
several other things that an accountant should teach you.

Aside from that, ladies and gentlemen, the burden depends on how much 
you want to save a shekel here or there by making your expenses 
recognized. And how much you want your money in the pocket NOW (as 
opposed to a tax refund a year later).

Well, not quite: You become responsible for your own pension fund, your 
desk, your computer, your everything. But that's a different story.

But let me emphasize it again: Do not even think about using your 
computer for issuing invoices and receipts. Unless you intend to open a 
supermarket.

     Eli

-- 
Web: http://www.billauer.co.il




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