In a job, tax comes out of your pay before you see it. As a freelancer, it doesn't: the whole payment lands in your account, and the tax bill comes later. Most first-year tax problems come from that gap. This checklist covers the steps that apply in most cases in each country, with links to the official pages so you can check the details for yourself.
In every country: three habits from day one
- Keep business money separate. A separate bank account for business income and costs makes your records, and your tax return, much easier.
- Set aside a share of every payment for tax on the day you're paid. Our tax set-aside calculator works out the share from your expected profit and this year's official rates. In its examples it comes to about 18% to 25%.
- Keep a record of every invoice and business cost as you go, not in a rush at the end of the year. A spreadsheet and a folder of receipts is enough to start.
United States
- Report all your business income. The IRS says you must report all business income, including income not reported to you on a Form 1099 (Publication 334).
- Expect self-employment tax. It's due once your net earnings from self-employment are $400 or more, on top of income tax. Our self-employment tax calculator shows the amount.
- Check whether you need quarterly estimated payments. Generally, yes if you expect to owe $1,000 or more when you file. In your first year you may not have to: the IRS says you don't need to pay estimated tax if you had no tax liability for the prior year, were a US citizen or resident alien for the whole year, and your prior tax year covered 12 months (IRS: estimated taxes).
- Know the 2026 dates: April 15, June 15 and September 15, 2026, and January 15, 2027. Our quarterly tax calculator works out the payments and the safe harbor that avoids a penalty.
- Keep records. Generally, keep records that support a deduction for 3 years from the date you file the return (Publication 463).
United Kingdom
- Register for Self Assessment. If you need to send a tax return and haven't before, tell HMRC by 5 October after the end of the tax year. For the 2026 to 2027 tax year, that's 5 October 2027 (GOV.UK: register).
- File and pay by 31 January. For 2026 to 2027, the online return and payment are due by 31 January 2028. Missing the online deadline means an automatic £100 penalty (GOV.UK: penalties).
- Plan for the first January. If your bill is £1,000 or more and less than 80% of your tax was taken at source, payments on account start, so the first January can include last year's tax plus half of it again. Our payments on account calculator shows the amounts.
- Watch the VAT threshold. You must register for VAT once your taxable turnover goes over £90,000 in a rolling 12 months. Our VAT calculator explains the rule.
- Keep records of your income and expenses. GOV.UK explains what to keep in business records if you're self-employed.
Canada
- Know the two dates. Self-employed people can file their 2026 return by June 15, 2027, but any balance owing is due by April 30, 2027 (CRA: tax deadlines).
- Expect to pay both halves of CPP on your self-employment earnings, 11.9% in 2026, plus CPP2 on higher earnings. Our self-employed tax calculator includes it.
- Check whether instalments apply. They're needed if your net tax owing is over $3,000 ($1,800 in Quebec) this year and in either of the two previous years. In a first year that's often not the case yet, but the full bill is then due on April 30. Our instalments calculator checks it.
- Watch the GST/HST limit. Most businesses must register once taxable sales are more than $30,000 in a single calendar quarter or over four consecutive calendar quarters. Our GST/HST calculator explains it.
Australia
- No one withholds tax for you. As a sole trader you pay when you lodge your return, and the ATO may ask you to pay quarterly PAYG instalments. Our sole trader tax calculator estimates the bill, including the Medicare levy and the small business income tax offset.
- Watch the GST threshold. You must register within 21 days once your GST turnover reaches, or is expected to reach, $75,000. Our GST calculator explains it.
- Think about super. Sole traders don't have to pay super for themselves, but personal contributions can lower your tax. Our voluntary super calculator shows the effect.
A worked example: what "set aside" looks like
Priya starts freelancing in England and expects £40,000 of profit in her first full tax year. Her estimated Income Tax and Class 4 National Insurance come to £7,131.80, which is 17.8% of her profit. So from each £2,000 a client pays her, she moves £356.59 into a tax savings account the same day.
Her first January will also include her first payment on account. With a £7,131.80 bill, that's half of it again, £3,565.90, so she'll need £10,697.70 that January. Saving from the start means the money is already there.
When to get help
Many freelancers do their own tax returns, but an accountant can help in your first year, or if you have income from more than one country, sell to customers abroad, or are thinking about setting up a company. Check that anyone you use is qualified and registered with a professional body.