Working From Home: Handling Your Tax

Working From Home: Handling Your Tax
Working from home can seem glamorous at times to some people with not having to leave home and working the hours that you choose, however there's one important factor that many people fail to consider when it comes to starting an Internet-based work from home job: Their tax.

In just about every nation on Earth (save for a few special instances like the tiny tax-free nation of Brunei), you're going to have to inform the government about your earnings in order for them to tax you.

When running an online based operation, it's very easy for the authorities to lose track of your earnings and in most cases they'll never pick up on them unless your tax organisation decides to run an audit on you.

In the 7+ years I've been working online, I've met literally dozens of people who have admitted to me they love doing things like affiliate marketing because it's very easy to get around the necessary evil of paying tax. This may sound all well and good, however this practice can be dangerous.

If caught for tax evasion, many governments impose hefty penalties including large fines to even imprisonment for up to 25 years or more in some nations.

When running or operating a home based business, you must ensure that declaring and paying tax is on your list of priorities. In some countries tax can be as high as 60% or more, though I'd still rather pay this much than spend time in prison.

Without doing anything illegal, there are alwasy ways to reduce your tax whether it be claiming reductions, hiring a great accountant or even moving country to pay a lower rate of tax. While you will still have to pay something, I'd still recommend you do this than avoid paying it at all.

In the end the choice is yours, however if you are caught for tax evasion when running your own home-based operation, don't say I didn't warn you!