Money
Keeping tax money apart from the start
Side income is usually taxable, and the bill often arrives months after the money was spent. The simplest protection is to treat part of each payment as never yours in the first place.
Open a separate place for it
A second account or savings space at your bank is enough. The point is that the money isn't in the account you pay groceries from.
Choose a share and move it every time
Check your tax authority's guidance or ask an accountant for a rough rate for your situation. Until you know, many people set aside a cautious share of each payment. It's easier to release extra money later than to find it at short notice.
Keep a plain record
- Date and amount of each payment
- Who paid and for what
- Costs you paid to do the work, with receipts
- How much you moved to the tax account
Ten minutes a week keeps this current. At the end of the year, it's all in one place.
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