Calculating freelance tax
Added 5 years ago
Does anyone have any tips on calculating tax when working as freelance, struggling to know how much to put away per month for future tax returns.Thanks
1 Like 
Sarah Lee @ The Talent Manager
Expert Contributor
@DavidThomas can you advise?
Paul Durgan
I'd recommend putting about 23-25% on each invoice/pay packet in a savings account, depending on how much you typically earn a year
Load 5 more comments...
Dean Carroll
Thank you, i will aim to keep 25% pugged away
David Thomas
25% should be plenty to cover tax and NI if you're a basic rate tax payer (earning less than £50,270 profit). You might even have a little bit left over once the bill comes in. Always a nice surprise.
Annette Gordon
Expert Contributor
I always calculate to put away about 25%. In fact, over the years I've got into the habit of putting away much much more than that. and have learnt to avoid spending money on anything that isn't absolutely necessary. Freelancing can be a lot more famine than feast.
Adrian Johnson
Expert Contributor
As others have said, 20-25% should be plenty to cover Tax & NI class 2 & 4. Put away as soon as your invoice is paid.Interest rates are so poor nowadays, my accountant said to think about putting your money into premium bonds which can easily be cashed back out. Money earn't at the start of the tax year (April) won't be needed for 18 months until you pay the first instalment on account so you never know you could win £50 etc. in the meantime. Always a bonus...
Dean Carroll
Thanks all. very helpful