Top 20 ranked "I wish I knew", many new freelancers don't proactively know much to put aside for tax and national insurance.
Needing to put enough money aside each quarter in order to cover any income tax, national insurance, corporation tax or VAT bills.
Paying your taxes is legally required, and in your first year, if you have a surprise tax bill, it might eat into your savings, emergency funds or worse penalities from HMRC.
The self-employed generally also pay National Insurance depending on their profits.
Taxes will always be a percentage of your income, so generally you’ll not be paying more than you’ve earned (although in year two, you’ll be paying tax in advance via payment on account!).
Most resources recommend to put away 20-25% of your income for tax, although if your turnover is higher or you’re a higher tax rate payer, you might want to be putting away 35-45%.
You can estimate your self-assessment bill if you’re already some way into your first year of freelancing - but remember, tax isn’t the only thing you’ll need to be paying.
Speak to an accountant - if you don’t already have one and you’ve not spent time understanding your taxes, it’s worth investing in finding an accountant who specialises in freelancers who can help you.