Word Law

They say the only things in life that are certain are death and taxes.  For the sole trader, this is definitely the case, and at times it can seem like an overbearing pressure.  Thankfully, for the sole trader there are many ways in which you can minimise liability to income tax and leave more in your bank account at the end of the month.  In this article, we will look at some of the key features of tax management from the perspective of the sole trader, and some of the ways in which the sole trader can minimise the legal consequences of his operation.

As a sole trader, you are usually accountable for your profits in terms of income tax.  This can be particularly problematic, given that the structure of income tax in most jurisdictions is a fairly heavy burden on the citizen, particularly those with higher incomes.  The first thing that should be considered is incorporation.  As a corporate entity, you will be required to handle more paperwork, but ultimately it will save you money.  Corporation tax on profits is lower than income tax in the majority of situations, and dividend income carries less taxable weight than other income, for example wages and salaries.  The first thing to do, as a sole trader within the top income tax bracket, is to incorporate, which could potentially save thousands every year.

The sole trader must be aware of the fact that there are certain items that cannot be discounted from income.  In fact, certain everyday items must be declared and must give rise to tax.  For example, say a self-employed solicitor is given a bottle of fine wine by a particular client every year as thanks for his service.  This wine, although not initially apparent, will usually require declaration for tax, on the basis that it is an ongoing gift or benefit arising from employment.  It is therefore important to watch what is included and what is ignored from your tax return.  If you are at all unsure, it is better to include an item and pay tax, rather than running the risk of neglecting to mention its existence.  Alternatively, it may be a good idea to consult a specialist on the particular laws of your jurisdiction, and to determine whether or not it would be possible to avoid liability.

Another important thing to remember is that there may be certain personal capital gains liability for disposal of a primarily business asset.  As a sole trader, this means you will be liable to account for the disposal of the asset and any capital gains at market value, which can be a costly business.  Again, it is probably advisable to consult a tax lawyer or tax adviser to minimise liability on disposal and to manage your tax liability more effectively.

Tax law is a particularly intricate area of the law, and one that is in perpetual change.  This means the small business owner is required to keep one eye on tax developments to avoid being caught out, which means there is less room for focus on the core areas of business and making money.  Alternatively, the advice of a tax specialist can be invaluable in minimising overall liability and ultimately saving money from your tax bill every year.

In previous years, generations ago women were considered property of the husband or father to whom they belonged.  Now as we have progressed into the 21st century women have stepped up to the plate and are an integral part of society and politics, on an entirely equal footing with men.  In the past, women were considered as belonging to their husbands or fathers, now they are the CEO’s of major corporations.  Women today are a very important part of society, with women in jobs such as judges, Senators, Congress, and even Governors – a feat that would have been highly surprising even twenty years ago.

These positions were not possible previously, with widespread social reform needed to bring about this change.  In previous years, women were only allowed to work on the family farm, or be a teacher, rather than being afforded experience in practical situations.  Women were expected to be married by the end of their teenage years, and were overlooked in conversations as being unable to contribute anything valid.  When elections were first started, women were not allowed to vote, they were barely allowed the right to run their own homes.

As society has progressed, we have seen women moving from the back of the line, to the front of the public eye, occupying more and more positions of authority and respect.  More women now than ever are working outside the home, and proving their own worth without a man to hold them up.  Many women are even choosing to not get married, as well as not have children, although experts are suggesting this will have implications for future generations.

With the push towards women’s rights, there has also been pushes towards expanding the rights for the lesbian community.  More women are stepping forward to fight for the rights that they are owed and due, alongside those already afforded to the male homosexual community.  Women have been taxpayers for as long as men have, at the same rates, and there are daily battles and struggles to overcome the problems and oppression that women are faced with, especially within the homosexual community to level this unfairness.

Even in today’s society and the move away from sexism there is still a notable difference in the amount of money a man earns compared to the amount of money a woman earns for the same job.  This is regardless of experience, training, and education, as many employers still feel women lack the competence to work within a competitive environment.  There are always major differences in the way issues are handled and there seems to be new differences appearing each and every day.

How society adapts is the important part, we are on the brink of the first woman in history winning a democratic party bid for the Presidency and this makes a wonderful time for women.  We are in the days, weeks, months and years following the Clinton presidency, and since then, Hillary Rodham Clinton has set an exception example for women by stepping out from behind her husband’s shadow and making a name for herself in the political arena. With her impact on the forthcoming Presidential elections still unknown, it will be interesting to see the effect this has on women’s rights both domestically and across the world.

Women are fighting and struggling each and every day to prove their worth, but with each day that passes a small victory for women’s rights, we are proving each and every day that we are a force to be dealt with.  Many people are eagerly awaiting the day when men and women are truly treated as equals.  It might be 2 days from now or perhaps 20 years from now, but it is a work in progress and will be accomplished.  By working together with the community as a whole, and avoiding a destructively defensive view point, women can promote their interests, as can men, to create a truly equitable environment.

Although we all have an understanding of what law is, and generally why it’s appropriate that it should be in place to serve and regulate our conduct in society, we seldom think of what law actually means in an everyday context.  What is law for the average Joe in the street?  How does law impact on our lives from day to day?  Indeed, is the law a distant concept with which we find it hard to relate?  In this article we will look at some of the fundamental ways law operates in society, in addition to the nature of the law as we know it.

For some people, they feel as though the law is there merely to protect their interests, and that they have no need for daily interaction.  However, they assume that if the day comes where their behaviour is called into question, the law will operate, the course of justice will be run, and the will of the people will be fulfilled.  This is perhaps a naïve interpretation of the function of law, and indeed the way it operates in our lives throughout the day.  For instance, at the top level we have the constitution, establishing parameters within which the government can and cannot act to protect the citizens of our nation.  That has an overwhelming effect on the way in which our government and indeed our country is run, which has a knock on effect on everything we do throughout the day and how we do it.  Even at a local level, the law interacts with the services we are provided, the jobs we work and pretty much everything to do with the lives we lead.  A distant concept?  I don’t think so.

The law does not just operate in criminal spheres, nor is it confined to merely constitutional matters and the distribution of power.  Law is a significantly more sophisticated tool in the orchestration of the day-to-day organisation of society, through regulating not only personal conduct but also the way we act in business situations.  Take for example the everyday task of boarding a train.  The law regulates many aspects of this feat: (1) the criminal law and the constitution permits us to board public transport.  (2) The constitution permits us to make contract with another.  (3) The laws of contract permit us to form a contract for transport with the train company,  and ensure that that contract is fulfilled.  (4) The laws of contract and tort allow us to board without fear of injury, or with remedy should the worst happen.  Finally the law of ownership and currency allows us to hand over money in consideration for this service, which is of value to the other contracting party.  In fact, the law regulates just about everything we do, and is vital in doing so to ensure the smooth running of community and every aspect of our lives.

The law is not some abstract notion that can and will protect us when we need to rely on it.  The law is an integral part of democratic life, and something which regulates our conduct, and in essence allows us to act according to our own desires within reason.  Some may think the law is too restrictive in certain areas, but it works.  The law serves its function as regulating our behaviour very well, and if it doesn’t?  We can change it.

The fact is, law has been an important part of society since it began, with implied legal and social orders and boundaries that could not be crossed.  Today, it is a sophisticated network of guidelines and regulations which is adapted to shape the way we live our lives from one day to the next.  There is no doubt that the law is important to the citizen, and plays a profound impact on the lives of the people on a daily basis.