Five Ways to Save for Your Tax Bill

Saving for a tax bill isn’t exciting, but ignoring it is worse, and it’s very easy to assume there’s plenty of time, especially if you’re self-employed or running a small business, and then suddenly the deadline is close and the number feels bigger than expected. A bit of planning makes it much less stressful.

Put Money Aside Straight Away

One of the simplest ways to manage tax is to treat it like it was never yours in the first place – setting aside a percentage of every payment as soon as it comes in means you’re not scrambling later. Even moving it into a separate account helps.

Use a Separate Tax Account

Keeping tax savings in a different account stops it getting mixed up with day-to-day spending. It sounds obvious, but it works; when it’s out of sight, it’s less tempting to dip into.

Pay in Smaller Chunks

If possible, putting money aside weekly or monthly feels far more manageable than trying to find a large lump sum in one go – small amounts build up nicely.

Get Proper Advice

Speaking to professionals like Cheltenham accountants at randall-payne.co.uk/services/accountancy/cheltenham-accountants/ can help you understand what you’ll likely owe and how to plan for it properly. Knowing the figure in advance takes away a lot of anxiety.

Keep Records Updated

Staying on top of invoices, expenses, and income throughout the year makes it easier to estimate what’s owed, and it means there are no surprises.

Saving for tax isn’t fun, but it’s better than that sinking feeling when the bill arrives.