FREE WORKBOOK
Tax Reserve Tracker
Turns your profit into the share of every invoice worth moving aside, and shows the bigger figure the first year needs.
Join dozens who use this
Who this workbook is for
Anyone reserving twenty per cent because someone said twenty per cent
On £55,000 of profit it holds, just: £12,800 against a £11,789 bill. It stops holding the moment you cross into higher rate. At £70,000 of profit twenty per cent is £1,798 short, and at £120,000 it is £15,404 short.
Anyone in their first year
This is where the rule of thumb breaks for everyone. The first January carries a full year plus the first payment on account, so £11,789 of tax needs £17,683 in the account. Twenty per cent of invoices leaves you £4,883 short on the day.
Anyone reserving a share of profit
Reserve against invoices instead, because invoices are what actually land in your account. The same bill is 21.4 per cent of profit but 18.4 per cent of invoices, and moving the wrong one across is how people end up over or under by thousands.
