August 2020 - Mommy Ginger

There is no denying that we have all been through an incredibly hard year so far. Who would have thought 2020 would have meant a lockdown, staying at home, and basically being scared of catching a virus? Nobody saw it coming, but as we are starting to have things eased off and we can go about our business once more, we are faced with a new normal. So what does that look like? Here are some of the things we need to think about that can help us embrace the new normal world we find ourselves in.

Booking and virtual appointments

One of the things to think about is that appointments, we would normally take for granted, are going to look a lot different now. This means that you might have to embrace virtual appointments. Be sure that you check with the store or the service first before going there. i’m sure a lot of stores have deployed new processes. Doing this avoids people coming into contact unnecessarily with each other, and can even mean faster fulfillment of the service. The more we become comfortable with this, the easier it will be moving forward.

Buying things online

Another thing to think about in embracing the new normal would be that more online shopping will become apparent and will be the “norm”. More stores are embracing this and offering online facilities. From getting your prescription glasses on a website to thinking about ordering essentials online, we are definitely going to be doing a lot more of this. Many delivery companies are also offering contactless delivery methods; this can give you extra peace of mind.

Having a collection of face masks

Nobody would have thought that a face mask will become the new normal, but here we are embracing it and having to wear one when we go on public transport or in shops. It isn’t the ideal situation, but it could help you to stop spreading the virus. It is a good idea for you to get a collection of face masks and try and keep one with you. Have them in the car and your bag so you know there is always one to hand.

Becoming more aware of social distancing

Social distancing is a new term that we have all become familiar with. It means remaining a certain length away from others to avoid catching or spreading the virus. However, it is also a good idea to make this part of your normal now. Many shops will have icons in place to help with distancing, and being outside when you meet with people will help you to do it better than you can indoors.

Keeping to your own bubble

Finally, it may be tempting to see everyone the minute you can, but this can also cause issues for you in terms of spreading the virus. Keep your family protected and only see people within your family and your bubble. As well as ensuring that the people you do see you do it in the safety of outside.

Let’s hope these tips help you to brace this new normal we find ourselves in safely and confidently.

I am registered as a VAT Registered Individual. I didn’t start as a VAT registered self-employed professional. I moved from being Non-VAT to VAT. This was required when I finally earned more than 3 Million gross earnings or gross revenue in a year.

One of our concerns as VAT registered individual taxpayers is how to write an OR for VAT Individuals. By the way, OR is short for official receipts. We’re not used to writing VAT official receipts, since we’ve been so used to writing Non-VAT official receipts (haha! I may just be speaking for myself). So I took some time out of my day actually to write this blog post so that I will have my own guide and so that you may have a guide, too.

I’ll be sharing two scenarios to teach you how to write an OR for VAT Individuals

Scenario one:

You charged your client Php 20,000 and you said that this is net of taxes. They asked you if you are withholding and how much percentage will that be.

Answer: The first thing that you always need to do (and this is for both scenarios that I indicate in this blog) is to send them the following together with your proposal: (1) your Certificate of Registration; (2) mention that you are a VAT entity just in case they don’t check the COR; and, (3) send a sample official receipt or invoice (a blank one).

Next, the Php 20,000 that you mentioned above also becomes your VATABLE amount. My PRO TIP is that it’s best to quote “net of taxes” because it’s easier for you and for the finance department of your client to compute. So what’s the computation?

VATable Amount	₱ 20,000.00
+ VAT (12% of VATable Amount)	₱ 2,400.00
Total Payable	₱ 22,400.00

On withholding taxes

Since they are withholding, withholding taxes for VAT individuals are usually at 10%. I usually find it weird when big local companies (their finance) ask me what ATC do I want. The company that withholds should be the one to choose how they want to declare the person based on the COR and service to be rendered by the individual is.

Let’s pause for a while though and define an ATC or Alphanumeric Tax Code. This is the code that tells the BIR what type of tax are you paying for. There are ATCs in different tax forms, but let’s focus on Withholding Taxes. You can find the complete guide of Alphanumeric Tax Codes in the BIR’s website. It’s alphanumeric because the format is like this… WI080.

The Client that you have is called a withholding tax agent. In their COR or Certificate of Registration, they probably have to pay “Withheld Taxes – Expanded” or Expanded Withholding Taxes. That means, for each expense that they have, they have to withhold a certain percentage. So since they are paying you, they need to withhold a certain percentage and declare this to the government. This filing of theirs (to put it simply) has a list of all the people and companies that they have paid and this list is called a QAP or Quarterly Alphalist of Payees. So if you still don’t know how BIR knew you were paid even if you didn’t declare, this is it.

This is the reason why they need to give you the form 2307 or Certificate of Creditable Tax Withheld. It is proof that they really remitted the taxes they said they will withhold and pay for. This is important because you can deduct the taxes they withheld from the income taxes you’re supposed to pay. For paying of income tax and how to “attach or deduct” the amount from form 2307, just use Taxumo. They have an onboarding session where you will learn how to use Taxumo to pay for taxes without really needing to know how to compute the nitty gritty details. Use my code mommyg for a 10% from your chosen subscription plans: https://taxumo.com (if you are VAT, the plan for that is the SMB plan).

So going back to the computation, the withholding taxes are withheld from the VATable amount. So let’s say your ATC is for 10% withheld taxes:

VATable Amount	₱ 20,000.00
+ VAT (12% of VATable Amount)	₱ 2,400.00
Total Payable	₱ 22,400.00
LESS: Withholding Tax (10% of VATable Amount)	₱ 2,000.00
Net Payable	₱ 20,400.00

So what do you write on your official receipt? With all the numbers above, do you want to guess? 🙂

What you will write on the right side of the OR (where you write the amount in words) is the ₱ 20,400. You will then write the breakdown on the portion where you can write the breakdown, usually on the left side for the OR.

When you get paid, you will receive (1) ₱20,400 as payment in cash and (2) ₱2,000 as payment in the form of a Form 2307 Certificate of Tax Withheld. Make sure you get both!

Scenario two:

What if I failed to tell my client I was a VAT entity and I’m fine with Php 20,000 inclusive of VAT. What is the computation? The client will also withhold.

In this case, you’ll have to compute back from the total amount / VAT Inclusive Price to the VATable + VAT amounts. Don’t worry, doing so is very easy:

VAT Inclusive Price	₱ 20,000.00
VATable Amount (VAT Inclusive ÷ 1.12)	₱ 17,857.14
VAT (12% of VATable Amount)	₱ 2,142.86
Total Payable	₱ 20,000.00
LESS: Withholding Tax (10% of VATable Amount)	₱ 1,785.71
Net Payable	₱ 18,214.28

So there you have it. These are the two scenarios that I’d like to share with you. If your scenario is more complicated than what I shared above (it’s possible), you can consult with a CPA via Taxumo Consult. A 45 minute consultation with them is just at ₱1000.

Hope this helps you understand how to write an OR for VAT Individuals. Please share this if you find this useful.

P.S. For Non-VAT individuals, you can check this out: A Freelancers and Consultants Guide to Using Taxumo

I have a lot of friends who are pregnant during these times. And, a lot of them have questions on how to get set up for a new baby.

When you find out that you’re pregnant, you usually have a fair amount of time to get ready for the arrival for your baby. However, that isn’t always the case. Sometimes you’re already far into your pregnancy before you realize that you have an impending arrival. There are several reasons this might happen especially during these times when there are a lot of things to think about and do. The most important thing is what you’re going to do after receiving the news. If you only have a limited amount of time to get ready, maybe only a couple of months or even weeks, you might be panicking about getting everything that you need. You might be short on time, but you can still take the steps that you need to get set up for a new baby.

Make a List of Essentials

One of the secrets of having a newborn is that they actually don’t need a lot of stuff. Of course, there are plenty of different gadgets and products that can come in handy when you have a baby. However, there are very few things that are really vital to have. The items that should be on your list of essentials include diapers, clothes, somewhere for your baby to sleep and things for keeping your baby clean. I made a list of the things that you need to bring to the hospital so you’re prepared. Check it out here: https://mommyginger.com/packing-things-for-the-hospital.html

I actually exclusively breastfed and used the bottle that I bought for storage. You can also result to bottle-feeding when you feel stressed out (do try to breastfeed though if possible). Either way is fine.

For the next step up, you might be thinking about items like a stroller, car seat or baby carrier/sling. My personal advice for this is only get it when the baby’s there. Some babies are choosy (like my daughter! LOL!). Decide what you really need – and consider asking for help from friends and family to stock up on essentials.

Decorate the Nursery

In truth, getting a nursery ready for a newborn doesn’t have to be a priority. Your baby could sleep in a Moses basket or crib by your bed for the first few months. They can also co-sleep with you. Some parents also believe that putting your baby to sleep in their own room can be a good idea too. You won’t have to worry about waking up your baby when you go to bed yourself. If you only have a small room to use as a nursery, take a look at some nursery ideas for small spaces. By keeping things small, you can also save money, and it could take you less time to get set up. If you want to paint the room and have the baby sleep in it, do it ASAP. You’ll need to let the paint dry and air it out to ensure it’s safe.

Check out my article on when we created Zeeka’s Nursery room.

Zeeka’s Nursery Room

Arrange Time Off (and Childcare)

Sorting out your maternity leave needs to be a priority if you’ve found out that you’re pregnant a little later than usual. How much time are you able to take off work? How much time do you want to take off work? Your first time at home with your baby is precious, and you will also need time to recover after your baby is born. If you need to get back to work fairly quickly, you will also need to look into childcare options. Even if most of us work from home, an extra set of hands will go a long way.

Take a Look at Your Finances

It’s normal to wonder if you can afford to have a baby, especially if your pregnancy might not have been planned. It might be a good idea to take a look at your finances and work out what you can afford. A newborn baby doesn’t have to be too expensive, although children do tend to get more expensive as they get older.

Here is a video on Managing Personal Finances.

Set Up Some Workstations

When you’re getting your home ready for a baby, consider the different tasks you will be doing day-to-day. Set up some different stations for doing various tasks, such as feeding, changing, preparing bottles, and more. You can organize everything so that it’s easy to reach for what you need when you need it. It might not always be easy to keep things neat and tidy, but you can create some order.

Think About Safety

Safety is also an important thing to think about when you’re getting ready for a baby. If you want to prioritize safety, don’t worry too much about “babyproofing” the house just yet. Your newborn won’t be moving around for a while, so you don’t have to worry about bumping heads of table corners or anything like that. However, you will probably want to focus on things like getting a safe car seat, choosing the right bedding, and buying a safe stroller.

Here is a safe detergent that you can use, as well.

Even if you don’t have a lot of time, you can still get set up for a new baby. It might seem like you have a lot to do, but there might not be as much as you think.

If you have other tips, feel free to comment on the section below. By the way, Expo Mom 2020 will be held this August. Hope you can buy tickets and shop online: https://expomom.com/#tickets

Have a great day!

I’ve started taking 4Life Transfer Factor Collagen and have been adding it to my coffee. My husband saw me adding it to my drink and he was curious to know how doing this “extra step” would benefit me. I always thought that people had a pretty clear idea on what collagen does to your body, then I figured out that just maybe there a still a lot of people who wonder why I’m taking 4Life Transfer Collagen and what collagen in general is for. Also, a lot of you may wonder why I take this collagen supplement versus other brands during these times.

What is Collagen?

Collagen is a protein that is found in your body. It is a building block that is a major component of connective tissues like tendons, ligaments, muscles and the biggest organ of our body, which is our skin.*

As we get older, our body produces less and less collagen. You can naturally increase the collagen production in your body by eating or ingesting food that help increase collagen production. Here is a great list of food that can help you produce more collagen: https://www.goodhousekeeping.com/health/diet-nutrition/g29486608/collagen-rich-foods/

Nowadays, a lot of products contain hydrolyzed collagen. Just to give you an idea of how big the market is, for collagen peptides, the market is seen to be valued at USD 599 Million in 2020. It’s projected to reach USD 795 Million by 2025.

What can Collagen do for us and our bodies?

I started becoming interested in adding collagen to my diet through supplements a couple of years ago. I added this into the list of supplements that I take alongside probiotics, etc. The reason why was that I started noticing that my body was changing — I had skin that was drier than usual and I started seeing lines around my eyes. I was feeling tired also most of the time.

I started reading about Collagen and found out that it really helps in many ways. Aside from glowing and supple skin, as we all know, since this is how they advertise collagen, it also helps in delaying degenerative joint disorders such as osteoarthritis (which runs in the family).

It also helps stop bone loss and builds muscle mass. I’ve noticed that upon taking collagen for quite some time, I tend to build muscles faster. Of course, I also exercise at least 2x – 3x a week in addition to taking this.

What I do to increase collagen production?

I came across this company called 4Life. 4Life has been in the industry of creating food supplements since 1988 in Utah, USA. Their founders were intrigued with Transfer Factors (boosts immune system). They then created different supplements that contained Transfer Factors that support immune system health, body transformation, and general wellness.

I also joined their media briefing recently to really vet the company and see what it was about. I listened to Eileen Tan Dario, the country manager of the Philippines’ speech. She mentioned that 4Life has 6 US patents and 38 International patents. In 2019, 4Life Philippines has been deemed to be the 4th largest market.

What I got from the session is that in this day and age, when it comes to taking care of our bodies, there are a lot of things that are medically proven or backed by science that can help us. I wondered that if this were the case, I think I should take control of what goes into my body, and I really want healthy food, drinks, vitamins and supplements that will benefit me.

What makes 4Life Transfer Factor Collagen different from other collagen supplements?

4Life Transfer Factor Collagen is beauty + immunity in a sachet. Aside from collagen, it contains transfer factor (read more about transfer factor below**).

How do you order this?

4Life Transfer Factor Collagen can be ordered from their site. I actually have 2 boxes with me right now, but I’ll be ordering another box again soon, since I think my husband wants to try it out, too.

One box is at Php 1890. To buy a box, please visit: https://philippines.4life.com/gingerarboleda

I’d love to know what you think after you have tried the product.

During these times, I think we all need to be in tiptop shape. Fighting a battle with an invisible enemy is tough for everyone, so we have to equip our bodies with a strong immune system.

Sources:

* https://www.realsimple.com/beauty-fashion/skincare/what-is-collagen

** https://www.webmd.com/vitamins/ai/ingredientmono-1011/transfer-factor