Self-Employed Tax Reserve Calculator
As a freelancer, no tax is withheld from your revenue the way it is for an employee โ you need to set money aside yourself for the tax bill. A common rule of thumb is to reserve 30 to 40% of your profit.
Result
ยฃ17,500.00
Recommended reserve
- Set aside per month
- ยฃ1,458.33
How this was calculated
- 1Profit ร reserve percentageยฃ50,000.00 ร 35% = ยฃ17,500.00
Formula
Reserve = profit ร reserve percentage
This is not an official tax calculation but a cautious buffer rule of thumb. The percentage you actually owe depends on your total income, deductions and tax brackets; 35% is a reasonable average guideline for most freelancers with a typical income.
Worked examples
โฌ 50,000 profit, 35% reserve
โ Reserve โฌ 17,500, or โฌ 1,458 per month.
Common mistakes
- Reserving based on revenue instead of profit (revenue minus expenses), setting aside too much.
Important to know
- This is an indicative rule of thumb, not tax advice. Your actual tax burden depends on your personal situation and deductions.
When to use it
- Setting a monthly savings target so the tax bill isnโt a surprise.
Frequently asked questions
Why 35% and not the top tax rate?
Self-employment deductions and other entrepreneur benefits reduce your taxable profit, so the effective rate is often lower than the top bracket rate.
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