Choose the Perfect options for the taxes Now
What a huge roller coaster it is, where we are on. The world is turned upside down by corona and the lives of almost all people are drastically different than usual. Work from home while you normally go to the office. Do your schoolwork at home instead of in class with boyfriends and girlfriends.
Children over the floor instead of going to school or daycare
Parents who normally work from home during those hours get nothing done. There are tough times when you work in healthcare. No more visitors if you live in a nursing home. No more income if you are self-employed with a profession that requires people to come together. Theaters, gyms, clubs, museums, schools, restaurants and cafes all closed. If you earn your income as a freelancer in that sector, it will be lost immediately. It’s all pretty dramatic but unfortunately necessary. The estimate business taxes are perfect there.
At the same time you see the most ingenious solutions passing by. Restaurants that did not do takeout or delivery quickly started doing so. Teachers in music, sports, dance, and creative subjects are popping lessons online via YouTube or Facebook Live. Not that they earn money with it, but they do continue to bind their students. And engage. A few have a platform with which they can generate some income through online lessons, but that is rare. There are museums that can be visited virtually. There are cinemas opening online movie theaters. Creativity is rampant in the country, we think that’s great to see. And at least I have something to fill the Go-Kids agenda with now that outings aren’t an option.
Income supplement urgently needed immediately
The first group is the people for whom the scheme is intended. So they are in a worrying situation. Apparently they don’t have any buffer, no reserves to sing along with for a while when income is lost. While that is extremely important for everyone but certainly if you are independent, now it is about loss of income due to a global health crisis, but it can always happen for other causes. That you just get seriously ill at any time and cannot work for a while a large client is dropped. Now there is support, then of course not.
Income supplement required immediately
Buffer for freelancers
So that buffer, an amount of savings to fall back on, is extremely important, especially for freelancers. You just have to take care of that. Of course it is easy to say that – not every self-employed person has a profession where high hourly rates can be charged. Or a revenue model that gives you good money. Then I may reason hard, but that is your choice. You choose to earn your money with certain activities. There are activities for which you can charge insane hourly rates and there are activities for which you hardly have anything to spare and everything in between. You choose what you do and with which revenue model. Of course it depends on what you can and what you like, but that is the trade-off. A self-employed person ‘existence where you earn just enough to pay the monthly costs without a partner or ability to relapse. what can I say, that’s less sensible. After all, you cannot build up a buffer and you see how quickly you get into trouble.