[Paul Coleman]

I reckon 20% of total turnover should cover it OK for most people even with the (8%?) NI + £2+ per week NI.  You get the first £6k or so tax free.  You get your business expenses knocked off too before calculating profits.  Of course if you want a nice sum left over after paying, by all means put 28% aside if you can afford to do so.  It's quite possible to cover it with less than 20% put aside if your business expenditure has been on the high side.

[Paul Coleman]

so what does everyone agree on 20%, 25%, or 28%?

my opinion is 25%

I would say 20% is enough myself.
This assumes that you are not going to hit a higher tax bracket and that your business expenses are around an average level.  If you scrimp every penny on expenses, maybe 22% to make sure.
This percentage is of TOTAL turnover BTW.
I would get away with 20% myself because I imagine my expenses are higher than average for a sole trader (spread out round, rent a small unit, on a water meter, invest in better equipment if affordable etc etc).

[phil espezido]

become limited and take directors salary allowance( about 5k) then do the rest as shareholder dividends. make sure all expenses are in there. just an idea.

[Sunshine/Cleaning]

If it's your first year watch out. You'll pay tax at the end of the year plus tax for half of the following year. Payment on account they call it.

also your ni contributions will seem amazingly low after coming out of employment. At the end of the tax year you will also have to pay a percentage of your earnings in additional ni contributions.

So i will need to put more away than 20% then?

For NI what if i am still in a PAYE job as well as this self employment?

If you are on PAYE you will need to put away the full 28% as all of your turnover minus expenses will be tax deductable. This includes NI class 4

[chopsie]

Why not just submit your tax return asap after April and then you will presumably get a figure you need to pay, Then have until end January to pay it? Is this correct?
I have just got my 2009/2010 stuff off accountant (gave them to him about June, So bit slow IMO), Looks like I will be getting money back, not paying any this year!!