One of the responsibilities you have as a freelancer is keeping your administration up to date. You must have this in order to file your taxes. We have some tips to help you out!
Save your invoices | Create a folder on your computer where you keep your invoices safely stored. You need your invoices when filing your tax return so that you know exactly what your earnings are. Besides that, you are legally obliged to keep your records for at least 5 years after the end of the tax year the invoice is from.
Save your receipts | You must also keep a good record of your receipts and costs incurred so that you can declare the costs you made in the tax return.
Save money | It is also important that you set aside money so that you can pay any taxes like National Insurance Contributions.
Keep track in Excel | Besides saving all your invoices and receipts, it is also helpful to write your earnings and expenses down in Excel. This way you have a very clear overview, and it makes it easier to file your tax return.
Opening a bank account | Opening another account is definitely not necessary, but it might help you keep all your earnings and expenses separated.
We understand that it can be difficult to keep everything organised. Fortunately, there are plenty of tools you can use to help you. For example, there are many accounting apps, or you could hire an accountant to do it for you.
Join our Discord community to ask for advice and tips directly from the successful freelancers of YoungOnes.
