What to track monthly
Income (invoices sent and payments received), expenses (anything wholly for the business), and a tax set-aside (typically 20-25% of profit for income tax, plus Class 4 NI). Use our free freelance income tracker to record all three.
The tax set-aside rule
Every time you receive a payment, move 25% to a separate savings account immediately. Call it 'HMRC money' and do not touch it. Self-assessment in January then becomes an exercise in moving money rather than finding it.
Claimable expenses
Common legitimate expenses: software and subscriptions, equipment, home office costs (proportion of bills), phone (business use proportion), professional memberships, accountancy fees, marketing. Keep receipts and a note of the business purpose for each.
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