Saving monthly for tax and NI

I only started minding in October last year so have not earned enough in the last tax year to worry about tax and NI but looking forward I just wondered if anyone saved some money each month towards tax and NI that may need paying at the end of the year?

Thanks

I transfer 20% of all money to another account and then pay off tax bill at end of year and give myself a bonus with the rest :-)

I think you will still have to pay NI.

I put money away every month for tax, NI class 2 and probable NI class 4 - then if there's any left I put it in my holiday pot :D

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Originally Posted by k1rstie

I think you will still have to pay NI.

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Yes I do but I put 20% of all invoices into another account - which is more than enough for tax and NI as it doesn't take into account the tax free allowance. So it's more than enough to cover it all -I've done it since I started and it works for me.

I do 25% of anything over £1k to take into account my allowance and this has always covered it with a bit over. I can't afford 20% of my gross salary to disappear :panic:

I pay £100 per month direct debit so by the time tax payday comes it's more or less paid :thumbsup:

Thanks for the replies. I going to put money aside into a separate account for now and see if I can set up a direct debit ready for next year.