As a self-employed individual, a surprise tax bill can derail your finances. At Talwar Accountant, we help freelancers, landlords, and side hustlers plan ahead for the 2024/25 tax year. Here’s how to save for your tax bill and avoid stress by 31 January 2026.
Unlike employees with PAYE, self-employed individuals pay Income Tax and National Insurance Contributions (NICs) annually. For 2024/25, you’ll owe tax on profits above £12,570, plus Class 2 NICs (£3.45/week if profits exceed £6,725) and Class 4 NICs (6% on profits £12,570–£50,270). Late payments incur penalties, so planning is key (see our filing guide).
Estimate 20–30% of your profits for tax and NICs. For example, £30,000 in profits (after expenses) might mean £5,000–£7,000 in tax/NICs. Maximizing allowable expenses lowers your bill (read our expenses guide).
Example: Adam, a freelance coder, saved £200 monthly for his £20,000 profit, covering his £4,500 tax bill with ease. Without planning, he’d have faced penalties.
Tax calculations can be tricky. Our expert advisors create personalized savings plans, ensure you claim all deductions, and keep you HMRC-compliant. With Making Tax Digital starting in 2026, staying on top of your finances now will make the transition smoother and less stressful.
Don’t let your tax bill catch you off guard. Book a free consultation to plan your 2024/25 taxes today.
Kind regards,
Jagdeep Singh ATT
Talwar Accountants
www.talwaraccountants.com