Given 3 months to pay 28k by HMRC

[Deleted User]

LadyWithAPlan said:

Good news on the payment plan. I also echo ESSEX H.
 Every month I do a quick expenses of the month on paper (main categories such as office rent/bills/subscriptions plus any one-off items)  and subtract that from income and then put the tax aside. I put my tax money in my premium bonds as I am taxed on my interest but otherwise a high interest acct works.

Note if you are SE once you are at the BR tax threshold you will be paying 20% tax + Class 4 NI of 9% so effectively 29% and at HR Class 4 is 2% so 42%
There are loads of SE calculators online

Don’t forget Class 2 NI - currently £3.45 per week!

EssexHebridean

I used to strip a straight 25% off all income - as this meant I could run my tax account at a surplus, and so could also use it to pay myself “holiday pay” as well. That’s probably not one to play with until you are absolutely confident that your budgeted amount for tax and NI etc is correct though.  

LaPlan makes a good point about use of premium bonds for tax money too for those for whom it’s economically sensible to manage savings interest more carefully. A flexible ISA could potentially also work for this I’d think.