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Here in the US, professional photographers are getting ready to pay their taxes. One of the biggest things that you learn as a business owner though has to do with paying what are called quarterly estimates. This means that you pay taxes each quarter of the year in smaller bits rather than one large bit once a year. At the end of each year, you submit your expenses and income and readjust what you pay each quarter.
It works much better than paying once a year and also means that you discipline yourself much better on top of managing your monthly budget on a different level. Of course, there are also sales taxes and other things involved. The added benefit is that since you’re budgeting yourself in a different way then you’re also not spending excess money that you possibly may not have if you just pay once a year.
Additionally, you also end up paying taxes in a different way than regular employees do. For example, you can write off a certain percentage of business meals, marketing promotions, travel, office expenses, bills, etc. because they’re all seen as costs for your business. Of course, that doesn’t mean that you should splurge; but instead be honest about everything.
There are many benefits to photographers paying their taxes quarterly; and if you’re just getting started be sure to talk to your tax consultant about it.