We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Working out tax & NI as a freelancer
Options

alicefreelance
Posts: 5 Forumite
in Cutting tax
Hi all!
I'm a 25 y/o relatively new to freelancing. I've paid off all my tax for the 2018/19 tax year but wishing to be more organised for 2019/20.
I know the wise route would be to get an accountant, and I AM considering this. However, I was wondering if anyone could give me any advice on how to estimate my monthly tax, NI and student loan repayments (plan 2) so I can save them each month. I don't want to fall behind and would prefer to set aside the correct money each month.
Any help would be much appreciated - maths isn't my strong point. Thanks in advance.
I'm a 25 y/o relatively new to freelancing. I've paid off all my tax for the 2018/19 tax year but wishing to be more organised for 2019/20.
I know the wise route would be to get an accountant, and I AM considering this. However, I was wondering if anyone could give me any advice on how to estimate my monthly tax, NI and student loan repayments (plan 2) so I can save them each month. I don't want to fall behind and would prefer to set aside the correct money each month.
Any help would be much appreciated - maths isn't my strong point. Thanks in advance.
0
Comments
-
you have not said if you are a Ltd company (employee & shareholder) or a sole trader (aka self employed) so your question cannot be answered
learn the basics
https://www.moneysavingexpert.com/banking/tax-rates/
read how tax works
https://www.moneyadviceservice.org.uk/en/articles/tax-and-national-insurance-when-youre-self-employed
if you are a Ltd Co ask your accountant because the tax position can be radically different and you have a significant opportunity for making a right mess of it0 -
I am a sole trader - sorry for the lack of clarification0
-
If you are really set against using an accountant, I'd suggest you use freeagent book-keeping software which includes tax/nic calculations as the year progresses based upon your income/expenses as entered by you, and has the functionality to submit your self assessment tax return after each year end. For small/simple sole traders, it's ideal. (No, I don't work for them, I'm just an accountant who uses it for a lot of our clients and find that clients really like it).
If you want to use other book-keeping software, that's fine, as long as you use something and do the book-keeping properly and regularly. If your core data isn't correct and up to date, whatever you use to estimate tax and NIC won't be right either - garbage in, garbage out.0 -
I'll take a look at Freeagent - sounds like it'd be really handy. Thanks so much.0
-
Id suggest Taxo'd, brilliant new software which auto files your tax return, scans receipts etc. https://taxodapp.com/0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards