How much should you set aside for tax?
A share of every payment, moved aside the day it lands. 25% is a common place to start in the US and the UK; on a $180 session that’s $45. Last year’s tax as a share of last year’s profit is the better number, once you have a year behind you.
| United States | United Kingdom | |
|---|---|---|
| What you pay on profit | Income tax, plus self-employment tax of 15.3% for Social Security and Medicare, up to a yearly cap for the Social Security part | Income tax above your personal allowance, plus Class 4 National Insurance |
| When you pay | Estimated tax in four installments a year, in April, June, September and January | Payments on account in January and July, and a balance the next January |
| Who it applies to | Estimated tax once you expect to owe $1,000 or more for the year | Payments on account once your bill is more than £1,000 |
| A common start | 25% of each payment | 25% of each payment |
Why every payment, and not at year end
Because the bill comes after the money is spent. A share moved aside each time means the money is there when the bill is, and a good month doesn’t look better than it was.
Your own rate
Once you’ve filed a return, divide the tax you paid by the profit you made. That’s your rate, and it’s better than any starting point. What to set aside for tax does the division and shows the sum for one payment and a month.
On WorkWith, Money shows what you were paid this month and, under it, take-home with your set-aside counted out. It’s arithmetic: your money goes from your client to your bank, and we never hold it.
Where you live, what else you earn and what you can deduct all change your rate. An accountant who knows your year will give you a better number.
Sources: IRS, Self-employment tax; IRS, Estimated taxes; GOV.UK, Self-employed National Insurance rates; GOV.UK, Understand your Self Assessment tax bill: payments on account. Checked 2026-10-11.