Work out exactly how much of every job to set aside for tax, so January doesn't wreck you.
For sole traders and subbies who've had one too many January nightmares. Covers income tax, Class 2 and 4 NICs, and student loan where relevant.
Sound familiar?
- “I blew £12k on a van, now I don't know what I'll owe in January.”
- “I'm flat out earning but I've got nothing put by.”
- “I just went over the higher-rate threshold and I've no idea what that does.”
- “My accountant said 'around 25%' and I don't know if that's true for my income level.”
What this tool does
Calculates a per-invoice set-aside percentage based on your expected annual profit, including income tax bands, Class 2 NIC, Class 4 NIC and student loan where it applies. Tells you the amount in pounds to move to your tax account the day each invoice lands.
£
What the law actually says
- •Self-assessment tax is due in two payments: 31 January (balancing payment plus first payment on account) and 31 July (second payment on account).
- •Payments on account can double your first January bill. The set-aside calculation has to include them.
- •HMRC charges interest (currently around 7.75%) from the day tax is late, plus escalating penalties from 30 days onwards.
What to do next
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