Do you feel like you’re on top of your tax? Do you know how much tax you need to pay? Do you know how to find the right information to work out your tax rate? Have you put money aside during the year for tax?
When you run your own business you don’t have an employer taking out tax from the money you earn but you still need to pay tax and it is your responsibility to take it out of your earnings and put it aside.
It is easy to feel like you are earning a lot when you only look at your before-tax income but the $100 you earn per client could possibly be as little as $69 after tax.