You can master your finances and deal with your tax on time like a pro. There are so many solutions and things to keep in mind when it comes to finances and saving money for your tax.
But we and our partner Coconut got you covered.
Last week, we invited our dear friend Coconut, experts in freelancing to host with us a more-than-useful webinar on how to master the art of saving money for your tax and keeping track of your expenses when you work for yourself.
Have a read of the key learnings from the event and the best advice from the team at Coconut.
James, Lead Accountant at Coconut, couldn’t repeat that enough: when you work for yourself, you need to keep track of your finances.
As James explains, business expenses can be: transport, phone bills, lunch, training (we’ll talk about this later on) etc.
Anything you need to pay/buy to run your business is considered a business expense.
James’s tip 💡Put aside at least 20% of your income every month (or 5% weekly if you prefer) to make sure you can pay your taxes at the end of the tax year.
One of the biggest challenges you could face when being freelance is not saving enough and not keeping track of your profit and expenses. So, don’t wait up!
If you’re not a spreadsheet master and would prefer to use a tool to keep track of your finances, there are many tools available on the market.
These tools are called “bookkeeping” or “tax” applications. They help sole-traders and/or limited companies to keep on top of their finances.
You can either use Coconut (and get the 3 first months free if you’re a freelance using Brigad) or have a look online at the best solutions available for you and your business.
Yes you read correctly. You can deduct your business expenses when you’re filling your self-assessment and thus lower the tax your pay.
You can deduct any expenses we mentioned above. How?
Coconut has gathered all the expenses you can claim and made a nice guide around it.
One question we do get very often is: can I deduct training and courses from my tax. Yes you can.
Training tends to fall into two categories, each one being subject to different tax rules:
If you are self employed, any training you do that keeps your existing skills and expertise up to date would be a tax allowable expense.
So for example, if you’re a commis chef and would like to train to become a chef de partie or need to update your certifications, you’ll be able to claim that back.
You can claim tax relief when you fill in your self assessment tax return. You’ll need to include it within the self employment section of your return as a business expense.
As with any other business expense, always make sure you keep your receipt as evidence of your claim.
You can ask the specific questions you have to James, Coconut’s Lead Accountant at firstname.lastname@example.org