Archive for January, 2008
Top 10 Tax Tips for the Self Employed
The ease of communication permitted by modern technology including the Internet, teleconferencing, and mobile communication has led many professionals to begin working for themselves. Among these empowered self-employed professions are an increasing number of coaches, consultants, contractors, and traditionally agent managed freelance occupations. What may have been independently solicited work to supplement a main income, has now become the main full-time job for many. While this allows workers to set their own hours and be their own boss, it also means the self-employed must address their own unique tax requirements. Below you can find 10 ways to maximize the money you keep and reduce your taxes.
1. The most important tax tip is to maintain detailed records. Not having big business resources to hire someone to track your records, it is up to you to keep receipts of deductions and to maintain thorough records.
2. Space used for business can be counted as a deduction: If there is some part of your home that you only use for business purposes, for example, a basement office or an extra room being used as an office, you my deduct this percentage of the total space. You may claim this deduction as a percent of your bills such as rent or utility payments. You may also deduct business expenses from a phone bill, if you are using the phone for business calls.
3. Don’t overlook business expenses: Office supplies, shipping fees and postage, newspaper and magazine subscription costs, professional membership dues, and other business related items including computer upgrades and software should be thoroughly maintained. Any expenses accrued while traveling for business would also be included. Be sure to keep all receipts.
4. Childcare Deductions: Deductions are allowed, by the IRS, for all kinds of daycare provided during business hours. Don’t overlook these important deductions as they can save you a lot of money.
5. Retirement plan creation: Develop a self-employed retirement plan (that is, a SEP IRA) not only for tax purposes, but also for the purpose of creating a corpus that would serve your retirement. One can start with as low as $100, however if one has $2000 or more, one should try the Keogh plan option, which allows one to invest his money in savings for the purposes of retirement and also get the deferred tax option.
6. Hire within the family: If a family member is an official employee, medical expenses for the entire family can be subtracted.
7. If you must, defer earnings: When you are self-employed, you are permitted to slightly change your billing so that you can postpone income if you discover you are in a higher tax bracket.
8. Get your FICA refunded: The self-employed in effect are making both the employers and employee’?s contribution to the FICA taxes every time they write their own payroll check. The tax code recognizes this so you are permitted to deduct 50% of the payments on the 1040 form.
9. Before the end of the tax year on December 31st you may need to increase your business expenses to offset your tax deductions. Buy a few business items that you know you will need for the months to come. This is a good option if you find your income has advanced you to the next tax bracket. This is one of ways to lower your tax burden for the year.
10. Get Tax Help: Seek tax help from a person who is very well-versed on self employment issues to get the correct needs.
By: Ron Finkelstein
About the Author:
1. The most important tax tip is to maintain detailed records. Not having big business resources to hire someone to track your records, it is up to you to keep receipts of deductions and to maintain thorough records.
2. Space used for business can be counted as a deduction: If there is some part of your home that you only use for business purposes, for example, a basement office or an extra room being used as an office, you my deduct this percentage of the total space. You may claim this deduction as a percent of your bills such as rent or utility payments. You may also deduct business expenses from a phone bill, if you are using the phone for business calls.
3. Don’t overlook business expenses: Office supplies, shipping fees and postage, newspaper and magazine subscription costs, professional membership dues, and other business related items including computer upgrades and software should be thoroughly maintained. Any expenses accrued while traveling for business would also be included. Be sure to keep all receipts.
4. Childcare Deductions: Deductions are allowed, by the IRS, for all kinds of daycare provided during business hours. Don’t overlook these important deductions as they can save you a lot of money.
5. Retirement plan creation: Develop a self-employed retirement plan (that is, a SEP IRA) not only for tax purposes, but also for the purpose of creating a corpus that would serve your retirement. One can start with as low as $100, however if one has $2000 or more, one should try the Keogh plan option, which allows one to invest his money in savings for the purposes of retirement and also get the deferred tax option.
6. Hire within the family: If a family member is an official employee, medical expenses for the entire family can be subtracted.
7. If you must, defer earnings: When you are self-employed, you are permitted to slightly change your billing so that you can postpone income if you discover you are in a higher tax bracket.
8. Get your FICA refunded: The self-employed in effect are making both the employers and employee’?s contribution to the FICA taxes every time they write their own payroll check. The tax code recognizes this so you are permitted to deduct 50% of the payments on the 1040 form.
9. Before the end of the tax year on December 31st you may need to increase your business expenses to offset your tax deductions. Buy a few business items that you know you will need for the months to come. This is a good option if you find your income has advanced you to the next tax bracket. This is one of ways to lower your tax burden for the year.
10. Get Tax Help: Seek tax help from a person who is very well-versed on self employment issues to get the correct needs.
By: Ron Finkelstein
About the Author:
Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has paid a lot of money over the years to learn these Self Employment Tax Tips. Check out these other 5 Small Business Tax Deductions You Don’t Want To Miss and more Consulting Articles
Practical Self Employed Tax Tips to Save you Money
Directors of companies are not self employed but employees of that company. In essence anyone who is in business either as a sole trader or part of a partnership and receives income that is not taxed under the PAYE system is effectively self-employed. Occasional miscellaneous receipts would not be regarded as self employment and should be entered on the tax return as all other income.
A regular source of receipts would be regarded as self employment income. Everyone considering themselves self employed should register with the Inland Revenue within 3 months of starting trading or risk a penalty fine of 100 pounds.
Keep a record of all transactions.
Sales turnover is the amount the business earns before deducting business expenses including receipts of any kind for goods sold or work done such as commission, tips, payments in kind, fees and insurance proceeds. Sales of fixed assets are excluded from sales turnover as are Business Start up grants which are entered in a different section of the self assessment tax return.
Excel spreadsheets make a good solution to record the sales income and bank receipts as part of the small business accounting software. Check the amounts deposited do not exceed the declared turnover which would indicate that you have understated your sales and your tax liability would at the least be increased unless you could provide a solid reason for the anomaly.
Ensure financial, purchase and sales records are compatible.
Compatibility will vary from business to business. Examples if you post 100 EBay items your records should show 100 items of income and 100 items of postage. Buy food for a restaurant for resale at four times cost, some wastage is inevitable but the underlying compatibility between sales generated and purchases should be reasonable.
The average number of meals sold from a take-away shop should be compatible with the number of take-away cartons purchased. A taxi driver should not claim fuel receipts during his holiday period and the fuel bills should be compatible with the fares obtained. Unusual and incompatible expenditure declared on the self assessment tax return can and do trigger Inland Revenue enquiries.
Many Inland Revenue enquiries result in a higher tax liability due to the scrupulous professional way in which compliance investigations are carried out.
Obtain receipts for everything.
Tax payers lose millions each year by not obtaining or retaining receipts for expenses. If you are claiming fuel costs for a business trip and fill up with 50 pounds of petrol get a receipt. The tax saved by including that receipt in your accounts is 11 pounds at basic tax rates and 20 pounds at higher tax rates.
If your business turnover is over the vat threshold of 64,000 pounds p.a. for 2007-08 the receipt is worth even more. 16.81 pounds vat and income tax at basic tax rate and 24.47 pounds at the higher income tax rate. The same is true for all other business receipts.
Obtain a receipt for everything.
If you lose a receipt then still include that expenditure in your accounting records but if your tax return is enquired into by the Inland Revenue that expenditure may be disallowed unless you can argue and sometimes prove the expense was in fact incurred. May help to note in your records – receipt lost.
Do not mix business and personal.
The general rule is that items solely for business use can be claimed for tax purposes and the business proportion of personal expenditure may be allowed although the rules are applied quite strictly. If you purchase both business and personal items from a supplier the business expenses only can be claimed but if you obtained all the items on a single receipt you would be disallowed the cost of that journey as it was not solely for business purposes.
Claim business expenses incurred prior to trading.
Business expenses incurred up to seven years prior to trading actually commencing can be deducted from business turnover if these expenses were solely for the future business purposes. Enter such expenses in your accounting records as if they had been incurred on the first day of trading but show the actual purchase date.
Claim home costs if you work from home.
If part of your home is identifiable as solely for business purposes then home costs can be claimed. The cost allowed is the proportion of the total area of the home the business area occupies. For example, excluding shared facilities of kitchen and toilet if the home has three bedrooms, living and dining room and one bedroom is used solely as an office then 1/5 of home costs could be claimed. The home costs to claim would be heat and light, insurance, general and water rates and mortgage interest excluding repayment amounts.
Where mortgage interest is claimed the revenue might also claim as a capital gain the increase in value of that proportion of the home, such Capital Gains Tax being subject to tapering relief over time. It may be safer not to claim mortgage interest as part of the home costs.
Take care if claiming the wages of a partner against profits.
Partner wages can be deducted as a business expense although there are rules which would be applied in such circumstances to ensure the amount paid is both real and reasonable. The business would need to operate a PAYE scheme for the partner wages, deducting income tax and national insurance, and produce all the statutory requirements.
The work carried out must be real not invented and the rate paid reasonable for the nature of the work and the time spent. Evidence may also be required that the partner wages were actually physically paid to that partner, for example in the form of a cheque.
Claim vehicle costs or mileage allowances.
Vehicle running costs and expenses such as fuel, excise duty, insurance, repairs and breakdown membership may be claimed as business expenses if the vehicle is used solely for business purposes. Travel from home to work is not business use and disallowed. The proportion of vehicle running costs and capital allowances which are claimable are dependent upon the proportion the vehicle is used for business and personal use.
Parking fees for business purposes may be claimed. Parking fines and penalties for motoring expenses are not claimable as business expenses for tax purposes. An alternative to claiming vehicle running costs and vehicle capital allowances would be to claim mileage allowances which at the time of writing are 40p for the first 10,000 miles and 25p per mile thereafter.
Write off expenditure against taxable profit unless the item is a fixed asset.
Depreciation is not allowed and replaced by Capital allowances for the purposes of calculating the tax payable. Capital allowances are designed to write off the cost of purchasing a fixed asset over the life of the asset rather than in the financial year in which it was purchased thereby spreading the tax relief on the asset over those years.
Many assets purchased by small businesses fall into a grey area as whether they are fixed assets or normal business expenses. Generally a fixed asset would be defined as an item that would be used by the business over several years and usually of significant value. 100% tax relief is obtained on items purchased which are not fixed assets and automatically claimed whatever the small business accounting software.
Avoid fines and penalties by submitting tax returns on time.
Accounting records and Self assessment tax returns should be prepared well in before the first submission date of 30th September to enable the information to be checked and verified before submission to ensure all possible claimable expenses have been included. The final deadline for submission is 31st January with late returns and payments being subject to penalty fines and interest payments which should be avoided.
By: Terry Cartwright
About the Author:
A regular source of receipts would be regarded as self employment income. Everyone considering themselves self employed should register with the Inland Revenue within 3 months of starting trading or risk a penalty fine of 100 pounds.
Keep a record of all transactions.
Sales turnover is the amount the business earns before deducting business expenses including receipts of any kind for goods sold or work done such as commission, tips, payments in kind, fees and insurance proceeds. Sales of fixed assets are excluded from sales turnover as are Business Start up grants which are entered in a different section of the self assessment tax return.
Excel spreadsheets make a good solution to record the sales income and bank receipts as part of the small business accounting software. Check the amounts deposited do not exceed the declared turnover which would indicate that you have understated your sales and your tax liability would at the least be increased unless you could provide a solid reason for the anomaly.
Ensure financial, purchase and sales records are compatible.
Compatibility will vary from business to business. Examples if you post 100 EBay items your records should show 100 items of income and 100 items of postage. Buy food for a restaurant for resale at four times cost, some wastage is inevitable but the underlying compatibility between sales generated and purchases should be reasonable.
The average number of meals sold from a take-away shop should be compatible with the number of take-away cartons purchased. A taxi driver should not claim fuel receipts during his holiday period and the fuel bills should be compatible with the fares obtained. Unusual and incompatible expenditure declared on the self assessment tax return can and do trigger Inland Revenue enquiries.
Many Inland Revenue enquiries result in a higher tax liability due to the scrupulous professional way in which compliance investigations are carried out.
Obtain receipts for everything.
Tax payers lose millions each year by not obtaining or retaining receipts for expenses. If you are claiming fuel costs for a business trip and fill up with 50 pounds of petrol get a receipt. The tax saved by including that receipt in your accounts is 11 pounds at basic tax rates and 20 pounds at higher tax rates.
If your business turnover is over the vat threshold of 64,000 pounds p.a. for 2007-08 the receipt is worth even more. 16.81 pounds vat and income tax at basic tax rate and 24.47 pounds at the higher income tax rate. The same is true for all other business receipts.
Obtain a receipt for everything.
If you lose a receipt then still include that expenditure in your accounting records but if your tax return is enquired into by the Inland Revenue that expenditure may be disallowed unless you can argue and sometimes prove the expense was in fact incurred. May help to note in your records – receipt lost.
Do not mix business and personal.
The general rule is that items solely for business use can be claimed for tax purposes and the business proportion of personal expenditure may be allowed although the rules are applied quite strictly. If you purchase both business and personal items from a supplier the business expenses only can be claimed but if you obtained all the items on a single receipt you would be disallowed the cost of that journey as it was not solely for business purposes.
Claim business expenses incurred prior to trading.
Business expenses incurred up to seven years prior to trading actually commencing can be deducted from business turnover if these expenses were solely for the future business purposes. Enter such expenses in your accounting records as if they had been incurred on the first day of trading but show the actual purchase date.
Claim home costs if you work from home.
If part of your home is identifiable as solely for business purposes then home costs can be claimed. The cost allowed is the proportion of the total area of the home the business area occupies. For example, excluding shared facilities of kitchen and toilet if the home has three bedrooms, living and dining room and one bedroom is used solely as an office then 1/5 of home costs could be claimed. The home costs to claim would be heat and light, insurance, general and water rates and mortgage interest excluding repayment amounts.
Where mortgage interest is claimed the revenue might also claim as a capital gain the increase in value of that proportion of the home, such Capital Gains Tax being subject to tapering relief over time. It may be safer not to claim mortgage interest as part of the home costs.
Take care if claiming the wages of a partner against profits.
Partner wages can be deducted as a business expense although there are rules which would be applied in such circumstances to ensure the amount paid is both real and reasonable. The business would need to operate a PAYE scheme for the partner wages, deducting income tax and national insurance, and produce all the statutory requirements.
The work carried out must be real not invented and the rate paid reasonable for the nature of the work and the time spent. Evidence may also be required that the partner wages were actually physically paid to that partner, for example in the form of a cheque.
Claim vehicle costs or mileage allowances.
Vehicle running costs and expenses such as fuel, excise duty, insurance, repairs and breakdown membership may be claimed as business expenses if the vehicle is used solely for business purposes. Travel from home to work is not business use and disallowed. The proportion of vehicle running costs and capital allowances which are claimable are dependent upon the proportion the vehicle is used for business and personal use.
Parking fees for business purposes may be claimed. Parking fines and penalties for motoring expenses are not claimable as business expenses for tax purposes. An alternative to claiming vehicle running costs and vehicle capital allowances would be to claim mileage allowances which at the time of writing are 40p for the first 10,000 miles and 25p per mile thereafter.
Write off expenditure against taxable profit unless the item is a fixed asset.
Depreciation is not allowed and replaced by Capital allowances for the purposes of calculating the tax payable. Capital allowances are designed to write off the cost of purchasing a fixed asset over the life of the asset rather than in the financial year in which it was purchased thereby spreading the tax relief on the asset over those years.
Many assets purchased by small businesses fall into a grey area as whether they are fixed assets or normal business expenses. Generally a fixed asset would be defined as an item that would be used by the business over several years and usually of significant value. 100% tax relief is obtained on items purchased which are not fixed assets and automatically claimed whatever the small business accounting software.
Avoid fines and penalties by submitting tax returns on time.
Accounting records and Self assessment tax returns should be prepared well in before the first submission date of 30th September to enable the information to be checked and verified before submission to ensure all possible claimable expenses have been included. The final deadline for submission is 31st January with late returns and payments being subject to penalty fines and interest payments which should be avoided.
By: Terry Cartwright
About the Author:
Terry Cartwright, qualified accountant, designs Accounting Software that automates the self assessment tax return for self employed as an essential part of Small Business Accounting Software and Payroll Software that automates the revenue payroll tax returns
Resume Mistake – it May be Costing You Employment
Employers know what they are looking for in a resume. If they see a resume mistake in any one of the resumes they are reviewing for a position, that resume will likely get filed in the “do not follow up” pile. If you want to be noticed, you need to make sure that your resume does not contain any errors that will irritate employers.
One thing that stands out is gaps in employment history. If you do not show why there is a gap between employment entries, it looks like you’re trying to hide something. Often, all that is needed is a simple explanation. If you were attending school or having a baby, state so. This doesn’t always have to be stated on the resume. You can include this information in your cover letter.
Another thing that turns employers off is typos and grammatical errors. Always spell check your resume. Have someone else look over it. You may not see a resume mistake, but someone else may be able to spot it quickly.
Avoid including too much information about what you do with your free time. Clubs and organizations are fine to include as long as they relate to the type of job you are applying for. If the information does not relate to the position, leave it out. An employer does not care what you do in your personal life.
Photos and personal profiles should not be used unless you’re an actor or model. Most managers do not want to know what potential candidates look like. They only want to know the facts. Discrimination complaints are rampant, and employers do not want to be accused of choosing an applicant based on their looks, gender or race.
Complicated and elaborate fonts do not make your resume stand out positively. Artsy resumes often get thrown in the trash. They are a nuisance to read and they are distracting. They also give the impression that you are not professional. Always stick to standard text and resume paper.
Another resume mistake that job candidates make is to not update their resume before they forward it. School activities may be important when you graduate from high school, but they look ridiculous on your resume when you are 35. Technology and skill sets change as well. Do not include skills that are not needed in today’s workplace. For example: Word processors have been replaced by computers and software.
By: CK Tan
About the Author:
One thing that stands out is gaps in employment history. If you do not show why there is a gap between employment entries, it looks like you’re trying to hide something. Often, all that is needed is a simple explanation. If you were attending school or having a baby, state so. This doesn’t always have to be stated on the resume. You can include this information in your cover letter.
Another thing that turns employers off is typos and grammatical errors. Always spell check your resume. Have someone else look over it. You may not see a resume mistake, but someone else may be able to spot it quickly.
Avoid including too much information about what you do with your free time. Clubs and organizations are fine to include as long as they relate to the type of job you are applying for. If the information does not relate to the position, leave it out. An employer does not care what you do in your personal life.
Photos and personal profiles should not be used unless you’re an actor or model. Most managers do not want to know what potential candidates look like. They only want to know the facts. Discrimination complaints are rampant, and employers do not want to be accused of choosing an applicant based on their looks, gender or race.
Complicated and elaborate fonts do not make your resume stand out positively. Artsy resumes often get thrown in the trash. They are a nuisance to read and they are distracting. They also give the impression that you are not professional. Always stick to standard text and resume paper.
Another resume mistake that job candidates make is to not update their resume before they forward it. School activities may be important when you graduate from high school, but they look ridiculous on your resume when you are 35. Technology and skill sets change as well. Do not include skills that are not needed in today’s workplace. For example: Word processors have been replaced by computers and software.
By: CK Tan
About the Author:
CK Tan is the owner of JobAsiaSearch.com, a web site dedicated to assisting job seekers secure a job in Asia. If you need help in your Asia job search or looking for a job opening in Asia, visit http://www.jobasiasearch.com
Top 5 Tips for Improving your Cv
Your CV is an invaluable mechanism for creating a positive impression to organisations that you are interested in working for: it is the foundation on which their perceptions will be based, so it is important to take the time to make sure your CV contains everything that is needed in order for the recipient to decide that they would like to invite you for an interview.
Your CV serves as a special kind of autobiography, offering a short written account of your achievements and experience. To make it as effective as possible, imagine yourself in your potential manager’s place and think about the skills and qualities they may wish to invest in and why. You can then organise and present the information in your CV in a way that is most likely to interest potential employers.
Easily avoidable errors are common among the CVs put forward by engineering personnel, according to the results of a recent survey by specialist technical and engineering recruitment firm, NES. The company, which places technical, engineering and IT personnel, has issued five top tips for maximising the impact of a CV, based on the errors identified:
Pay attention to the layout of your CV:
The way in which you present your CV requires careful consideration. Over 70% of the recruitment consultants questioned in the survey by NES cited a poor layout as one of the most commonly occurring errors made by candidates when composing their CVs.
Uniformity, clarity and flow of information are particularly important when you bear in mind that an employer only needs to look at a CV for a few seconds before deciding whether or not to continue reading it.
Information should be presented under clearly labelled sections, with education and employment history documented in reverse chronological order – with the most recent position first. Contact details should always be clearly visible at the top of the CV. The most effective way to present your CV is with bullet points, bold headings and underlining. These simple methods can achieve a clear and structured style.
Check (and double-check!) for spelling and grammatical errors:
The importance of checking over your CV for spelling and grammatical errors cannot be stressed enough. Despite wide agreement that spelling, punctuation and grammar must be perfect when writing a CV, almost half of the survey respondents regularly encounter this type of error.
This suggests that applicants are either over-familiar with their own CVs having spent a lot of time compiling them, or are over-reliant on spell-checkers. The simplest way to avoid submitting a CV containing these types of mistakes is to ask someone else to read over it.
Tailor your CV to a specific role:
Tailoring your CV to a particular role will generate a much more positive response from employers than mass-mailing a standard CV to a large volume of recipients, according to NES recruitment consultants. In the survey, 50% of consultants cited failure to tailor a CV to a specific role as something they most frequently came across. While this relates primarily to permanent or long-term expatriate positions, contractors should tailor their CVs according to the specialist area of the organisation for which they would like to work.
Explain gaps in work history:
According to the same survey by NES, large gaps in work history were also cited as frequently encountered among technical and engineering CVs. Almost half of NES recruitment consultants said that this acted as a deterrent to hiring managers.
People who leave gaps in their work history leave employers with no alternative but to question why they have done so. By explaining that you spent time travelling or had a career break, you will eliminate the need for this: seemingly fragmented careers are unlikely to create a positive impression; although with contract roles, greater potential for career gaps means that it is only necessary to explain significant breaks in continuity.
Document the responsibilities of previous positions:
The fifth most frequently encountered CV error, according to over a third of respondents, was failure to list the responsibilities of a role. NES advises candidates to be specific and, wherever possible, tie in responsibilities to achievements. The company insists that, when composing your CV, there is no time for modesty: self-promotion is imperative.
To ensure that you secure interviews, read over the above tips and apply them to your own CV. Is it the CV of the perfect candidate? Give yourself a head start by paying attention to detail at this crucial stage of your job search.
www.nes.co.uk
By: NES Group
About the Author:
Your CV serves as a special kind of autobiography, offering a short written account of your achievements and experience. To make it as effective as possible, imagine yourself in your potential manager’s place and think about the skills and qualities they may wish to invest in and why. You can then organise and present the information in your CV in a way that is most likely to interest potential employers.
Easily avoidable errors are common among the CVs put forward by engineering personnel, according to the results of a recent survey by specialist technical and engineering recruitment firm, NES. The company, which places technical, engineering and IT personnel, has issued five top tips for maximising the impact of a CV, based on the errors identified:
Pay attention to the layout of your CV:
The way in which you present your CV requires careful consideration. Over 70% of the recruitment consultants questioned in the survey by NES cited a poor layout as one of the most commonly occurring errors made by candidates when composing their CVs.
Uniformity, clarity and flow of information are particularly important when you bear in mind that an employer only needs to look at a CV for a few seconds before deciding whether or not to continue reading it.
Information should be presented under clearly labelled sections, with education and employment history documented in reverse chronological order – with the most recent position first. Contact details should always be clearly visible at the top of the CV. The most effective way to present your CV is with bullet points, bold headings and underlining. These simple methods can achieve a clear and structured style.
Check (and double-check!) for spelling and grammatical errors:
The importance of checking over your CV for spelling and grammatical errors cannot be stressed enough. Despite wide agreement that spelling, punctuation and grammar must be perfect when writing a CV, almost half of the survey respondents regularly encounter this type of error.
This suggests that applicants are either over-familiar with their own CVs having spent a lot of time compiling them, or are over-reliant on spell-checkers. The simplest way to avoid submitting a CV containing these types of mistakes is to ask someone else to read over it.
Tailor your CV to a specific role:
Tailoring your CV to a particular role will generate a much more positive response from employers than mass-mailing a standard CV to a large volume of recipients, according to NES recruitment consultants. In the survey, 50% of consultants cited failure to tailor a CV to a specific role as something they most frequently came across. While this relates primarily to permanent or long-term expatriate positions, contractors should tailor their CVs according to the specialist area of the organisation for which they would like to work.
Explain gaps in work history:
According to the same survey by NES, large gaps in work history were also cited as frequently encountered among technical and engineering CVs. Almost half of NES recruitment consultants said that this acted as a deterrent to hiring managers.
People who leave gaps in their work history leave employers with no alternative but to question why they have done so. By explaining that you spent time travelling or had a career break, you will eliminate the need for this: seemingly fragmented careers are unlikely to create a positive impression; although with contract roles, greater potential for career gaps means that it is only necessary to explain significant breaks in continuity.
Document the responsibilities of previous positions:
The fifth most frequently encountered CV error, according to over a third of respondents, was failure to list the responsibilities of a role. NES advises candidates to be specific and, wherever possible, tie in responsibilities to achievements. The company insists that, when composing your CV, there is no time for modesty: self-promotion is imperative.
To ensure that you secure interviews, read over the above tips and apply them to your own CV. Is it the CV of the perfect candidate? Give yourself a head start by paying attention to detail at this crucial stage of your job search.
www.nes.co.uk
By: NES Group
About the Author:
NES is a leading global technical recruitment business providing professionally qualified contract staff to blue chip clients across the world in the oil and gas, infrastructure, rail, power and IT sectors. Founded in 1978, a committed workforce has facilitated the company’s success and continues to ensure that NES experiences ongoing growth in terms of customers, geography and sector.
Job Hunting Tips — What Employers Look For
What Employers Want
Awareness of employer’s expectations is essential to finding a job. Older job-hunting techniques focused on “you”, the person. It laid emphasis on your work history, accomplishments, academic background and other credentials. It focused on your qualifications and objectives as well. But that has changed and today, employers expect you to know what their needs are and tell them how you can complement the organization.
Energy
Displaying the right energy and initiative is very important. Energetic people are credited with enthusiasm, vigor and drive and that is exactly what employers want. Most jobs require you to be proactive. Employers can easily evaluate this ability, almost as soon as the candidate enters the room. If you are not an energetic person, you should practice ways to look and act accordingly, in order to make a good first impression. It can make a huge difference; most of the time, job opportunities are won or lost on approach and preparation.
Specific Skills
Every job involves a set of specific skills and education or training, with the required background and experience. Most often, these skill sets are mentioned in the advertisement. If, however, they are not mentioned specifically, find out about the company and its hierarchical structure. This will help you to prepare to present specific abilities and initiative, creating a positive impact on the employer. Your primary concern, once you have the list of required skills, should be to present evidence that you have those skills.
This could involve your academic qualifications, projects and achievements. In addition, you need to project the capability to meet job responsibilities, work experience, voluntary activities and tasks in personnel management. The key is to try to match your skills and capability to the specific requirement of the employer. Highlight the relevant areas, since recruiters usually do not have a lot of time on hand and have to deal with a number of applications. They show interest only in particular skill sets that are required by the organizations that they represent. Make these skill sets noticeable. Precision and brevity are important too, but it is also important to highlight the skills you possess and how you can be an asset to the firm.
Transferable Skills
There are particular skills that most employers look for that have nothing to do with the competencies required for the particular job. These skills indicate the development potential and not the knowledge level. These so-called transferable skills include communication, teamwork, leadership, initiative, problem solving, adaptability, motivation and numerical skills. In addition to this, private sector companies prefer the candidate to have some idea of how the firm operates, current business news and trends and their impact on the organization. The courses completed, work experience and hobbies are of value as well. Be ready to answer clearly if asked at the interview as to how your education has prepared you for a specific job. You should be prepared with a good and precise answer. It is important to plan in advance.
By applying the steps above, you will be well on your way to giving employers what they want and conducting a highly successful job search.
By: Tony Jacowski
About the Author:
Awareness of employer’s expectations is essential to finding a job. Older job-hunting techniques focused on “you”, the person. It laid emphasis on your work history, accomplishments, academic background and other credentials. It focused on your qualifications and objectives as well. But that has changed and today, employers expect you to know what their needs are and tell them how you can complement the organization.
Energy
Displaying the right energy and initiative is very important. Energetic people are credited with enthusiasm, vigor and drive and that is exactly what employers want. Most jobs require you to be proactive. Employers can easily evaluate this ability, almost as soon as the candidate enters the room. If you are not an energetic person, you should practice ways to look and act accordingly, in order to make a good first impression. It can make a huge difference; most of the time, job opportunities are won or lost on approach and preparation.
Specific Skills
Every job involves a set of specific skills and education or training, with the required background and experience. Most often, these skill sets are mentioned in the advertisement. If, however, they are not mentioned specifically, find out about the company and its hierarchical structure. This will help you to prepare to present specific abilities and initiative, creating a positive impact on the employer. Your primary concern, once you have the list of required skills, should be to present evidence that you have those skills.
This could involve your academic qualifications, projects and achievements. In addition, you need to project the capability to meet job responsibilities, work experience, voluntary activities and tasks in personnel management. The key is to try to match your skills and capability to the specific requirement of the employer. Highlight the relevant areas, since recruiters usually do not have a lot of time on hand and have to deal with a number of applications. They show interest only in particular skill sets that are required by the organizations that they represent. Make these skill sets noticeable. Precision and brevity are important too, but it is also important to highlight the skills you possess and how you can be an asset to the firm.
Transferable Skills
There are particular skills that most employers look for that have nothing to do with the competencies required for the particular job. These skills indicate the development potential and not the knowledge level. These so-called transferable skills include communication, teamwork, leadership, initiative, problem solving, adaptability, motivation and numerical skills. In addition to this, private sector companies prefer the candidate to have some idea of how the firm operates, current business news and trends and their impact on the organization. The courses completed, work experience and hobbies are of value as well. Be ready to answer clearly if asked at the interview as to how your education has prepared you for a specific job. You should be prepared with a good and precise answer. It is important to plan in advance.
By applying the steps above, you will be well on your way to giving employers what they want and conducting a highly successful job search.
By: Tony Jacowski
About the Author:
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
11 Year End Tax Savings Tips
This time of year, now through the first quarter of next year, you will see articles offering year-end tax planning tips. Tax planning tips can increase income in future years, so be careful. Many tax tips often involve accelerating deductions, deferring income, or last-minute charitable deductions (the first three following tips).
For example you may be compelled to make a large charitable contribution this year by December 31st. However if you could be in a higher tax bracket next year because your income is going up because of a substantial raise or bonus, you would have been better off to make the contribution next year. Some may say this is heartless, but I say just the reverse. If you pay less in taxes because of good planning, your will be better off financially and able to give more in the future.
If you have volatile income, before you use the tax savings tips here and in other articles, you may want to run projections for this year and next. A good accountant will run these calculations for you, but understand that tax law changes from year to year and from one administration to the next can often make predicting tricky.
1. Defer income
If you are able to defer income, such as commissions and bonuses until next year, you might be able to pay lower income taxes this year. However, you must consider what your income and taxes will be next year to be sure that you are not actually increasing your taxes.
2. Accelerating deductions
Accelerating major deductions such as state income taxes, property taxes, and mortgage interest may help anyone, especially during a high-income year. If you don’t think your personal income tax bracket will be higher next year, and you’re not affected by the alternative minimum tax, you can make state and/or local tax payments before the end of this year so you can take a deduction this year.
3. Charitable Contributions
Consider making chartable deductions before the end of the year to receive a deduction. You must make the contribution by 12/31/2007.
Donate appreciated property such as real estate or stock instead of the proceeds of the sale. You may be able to receive a deduction for the value of the contribution without paying tax on the growth portion resulting from a sale, then a gift. If you intend to transfer appreciated property, begin early since it will take several weeks to make the change.
4. Alternative minimum tax traps
Many people face large AMT bills compared to previous years. Be warned if you have larger than usual medical expenses, non-federal income and real estate taxes, or miscellaneous itemized deductions; or if you have exercised large stock options, to name a few.
Year-end tax planning strategies can backfire under AMT. Be very careful accelerating some deductions and exercising stock options at year end. See a tax professional for information on your specific tax situation.
5. Be careful when investing new money in mutual funds at the end of the year
Call the mutual fund and find out when the distribution date is. You may want to purchase after the distribution date to avoid owing taxes on fund shares that you owned only for a short period of time and had little to no gain.
6. Contribute the maximum to retirement accounts
Contribute the maximum allowable to employer-sponsored defined contribution retirement plans, such as profit sharing, 401(k), 403(b) and 457(b) plans. This not only provides an excellent tax deduction, but it also helps you to plan for your future retirement.
You may want to contribute to an IRA; up to $2,000 is fully deductible if you did not participate in a company-sponsored retirement plan or if your income falls below certain levels.
If you are self-employed, you can contribute more to a pension plan than into an IRA. You have until December 31 to set up the plan.
7. Investment Losses
If your investment portfolio has stock that has depreciated in value and is worth less than when you originally purchased it, you may want to consider selling it. You may be able to use that loss to offset capital gains and ordinary income.
Be careful though; investment decisions should not just be for tax purposes. Make sure that you do your research before selling any investment. Some people react too quickly when investments lose value; others sometimes hold on too long. If you decide to sell and invest in something new, make sure that you examine your portfolio to ensure that you have the right mix of investments to match your investment profile, risk propensity and asset allocation model.
8. Save for College
Consider contributing to your child’s college savings into a 529 plan. The contributions are not deductible on your Federal return, but parents may be able to write off contributions up to a certain dollar amount on their state income tax return. Log on to SavingforCollege.com to find out information about your state.
9. Home Improvements
Here is a great deal. How about saving energy and the environment, lower utility bills, increase the value of your home and save on taxes all at once. Projects for the home’s shell (insulation, windows, sealing) and heating and cooling may qualify for a one time tax credit of $500. However you are running out of time, since they must be in place by the end of 2007. So while crawling around your attic looking for ornaments, think of adding insulation. If you made home improvements over the last couple of years, be sure to dig up your records; you may already be eligible.
Before moving forward on one of these projects, make sure that you get full information about these and other energy efficient tax incentives from The Tax Incentives Assistance Project at http://www.energytaxincentives.org/. There you will find more information about Home Shell and Heating & Cooling as well as Hybrid Passenger Vehicles and Solar Energy Systems.
10. If self-employed, buy equipment and supplies
Have you been putting off buying needed business equipment and supplies, or do you know that you will soon need them? Now may be the time to invest in your business and save taxes as well. Business tax can be complex; therefore it may be wise to first call your accountant prior to large purchases.
11. Give gifts to children
When you give to friends and family, it is usually not taxable to the recipient or the giver. Many people do not realize though if that gift exceeds $12,000 per person it is taxable to the giver, and at a high rate. Therefore, if you intend to give anyone more than that amount, you could give some this year and some next. The second tip is that you and your spouse can both give $12,000 per person, doubling the amount not subject to tax. Be sure to consult your legal and tax advisor prior to making all gifts.
By: Kent Irwin
About the Author:
For example you may be compelled to make a large charitable contribution this year by December 31st. However if you could be in a higher tax bracket next year because your income is going up because of a substantial raise or bonus, you would have been better off to make the contribution next year. Some may say this is heartless, but I say just the reverse. If you pay less in taxes because of good planning, your will be better off financially and able to give more in the future.
If you have volatile income, before you use the tax savings tips here and in other articles, you may want to run projections for this year and next. A good accountant will run these calculations for you, but understand that tax law changes from year to year and from one administration to the next can often make predicting tricky.
1. Defer income
If you are able to defer income, such as commissions and bonuses until next year, you might be able to pay lower income taxes this year. However, you must consider what your income and taxes will be next year to be sure that you are not actually increasing your taxes.
2. Accelerating deductions
Accelerating major deductions such as state income taxes, property taxes, and mortgage interest may help anyone, especially during a high-income year. If you don’t think your personal income tax bracket will be higher next year, and you’re not affected by the alternative minimum tax, you can make state and/or local tax payments before the end of this year so you can take a deduction this year.
3. Charitable Contributions
Consider making chartable deductions before the end of the year to receive a deduction. You must make the contribution by 12/31/2007.
Donate appreciated property such as real estate or stock instead of the proceeds of the sale. You may be able to receive a deduction for the value of the contribution without paying tax on the growth portion resulting from a sale, then a gift. If you intend to transfer appreciated property, begin early since it will take several weeks to make the change.
4. Alternative minimum tax traps
Many people face large AMT bills compared to previous years. Be warned if you have larger than usual medical expenses, non-federal income and real estate taxes, or miscellaneous itemized deductions; or if you have exercised large stock options, to name a few.
Year-end tax planning strategies can backfire under AMT. Be very careful accelerating some deductions and exercising stock options at year end. See a tax professional for information on your specific tax situation.
5. Be careful when investing new money in mutual funds at the end of the year
Call the mutual fund and find out when the distribution date is. You may want to purchase after the distribution date to avoid owing taxes on fund shares that you owned only for a short period of time and had little to no gain.
6. Contribute the maximum to retirement accounts
Contribute the maximum allowable to employer-sponsored defined contribution retirement plans, such as profit sharing, 401(k), 403(b) and 457(b) plans. This not only provides an excellent tax deduction, but it also helps you to plan for your future retirement.
You may want to contribute to an IRA; up to $2,000 is fully deductible if you did not participate in a company-sponsored retirement plan or if your income falls below certain levels.
If you are self-employed, you can contribute more to a pension plan than into an IRA. You have until December 31 to set up the plan.
7. Investment Losses
If your investment portfolio has stock that has depreciated in value and is worth less than when you originally purchased it, you may want to consider selling it. You may be able to use that loss to offset capital gains and ordinary income.
Be careful though; investment decisions should not just be for tax purposes. Make sure that you do your research before selling any investment. Some people react too quickly when investments lose value; others sometimes hold on too long. If you decide to sell and invest in something new, make sure that you examine your portfolio to ensure that you have the right mix of investments to match your investment profile, risk propensity and asset allocation model.
8. Save for College
Consider contributing to your child’s college savings into a 529 plan. The contributions are not deductible on your Federal return, but parents may be able to write off contributions up to a certain dollar amount on their state income tax return. Log on to SavingforCollege.com to find out information about your state.
9. Home Improvements
Here is a great deal. How about saving energy and the environment, lower utility bills, increase the value of your home and save on taxes all at once. Projects for the home’s shell (insulation, windows, sealing) and heating and cooling may qualify for a one time tax credit of $500. However you are running out of time, since they must be in place by the end of 2007. So while crawling around your attic looking for ornaments, think of adding insulation. If you made home improvements over the last couple of years, be sure to dig up your records; you may already be eligible.
Before moving forward on one of these projects, make sure that you get full information about these and other energy efficient tax incentives from The Tax Incentives Assistance Project at http://www.energytaxincentives.org/. There you will find more information about Home Shell and Heating & Cooling as well as Hybrid Passenger Vehicles and Solar Energy Systems.
10. If self-employed, buy equipment and supplies
Have you been putting off buying needed business equipment and supplies, or do you know that you will soon need them? Now may be the time to invest in your business and save taxes as well. Business tax can be complex; therefore it may be wise to first call your accountant prior to large purchases.
11. Give gifts to children
When you give to friends and family, it is usually not taxable to the recipient or the giver. Many people do not realize though if that gift exceeds $12,000 per person it is taxable to the giver, and at a high rate. Therefore, if you intend to give anyone more than that amount, you could give some this year and some next. The second tip is that you and your spouse can both give $12,000 per person, doubling the amount not subject to tax. Be sure to consult your legal and tax advisor prior to making all gifts.
By: Kent Irwin
About the Author:
Kent E. Irwin, ChFC, CLU, CAP, co-founder and CEO of eFinplan.com. eFinPLAN is the first and only web-based comprehensive consumer financial planning software designed for people who are trying to do a lot of their own financial planning. Find out more about how do-your-self financial planning and how to reach your goals at: => http://www.efinplan.com/
