Freelancers, any advice about how to calculate/keep track of your tax deductions from your earnings throughout the year?
Do you guys have access to any spreadsheets for organising finances/apps that could help with this?
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- Yes I recommend looking into digital solutions like Xero (which I use) and the like. They are all fully integrated with your bank account and phone so you can stay across all costs wherever you are.Before I used that kind of software, I used to just keep all my receipts that were work related. Then do the time consuming task of putting them in a spreadsheet at the end of the year to count it all up. Remember to check your emails for online purchases!When you add all the data to HMRC, you are able to break down your expenses into categories like travel, equipment, wages (anyone you paid) and other. You can break down your individual costs in order to get them in the right category. It's super boring but it's also helpful to see exactly how much you're paying over the year for things. You almost always get a few surprises ;)
- Hi Faith,'Coconut' is a great business bank account that work out all the deductions for you and allow you to download spreadsheets of all incomings/outgoings
- Hey, lots of good servaces out there. Zoho, Quickbooks and Xero are a few that are popular for SME. They generate your invoices and help handle your expences. WaveApps was a good free one im using for one business but they are slowing retreating back to the US so wouldnt recomend starting out with them now.
- Hey Faith, I’ve been using FreeAgent for the last year. It’s been super helpful for keeping a track of all of that during the year. It allows you to submit your return too.
- I keep an excel spreadsheet with each invoice number, company, how much I made, how much should be saved for taxes and the date I was actually paid- it’s so helpful!!
- QuickBooks is a very good app. It keeps track of your invoices and calculates taxes too.
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