When someone is starting up their first free lancing adventure it is the second thing that I shout towards them after ‘’Keep a copy of all your invoices and receipts’’;
“Keep track of all time that you spend on your business”
Yes, it is not the most fun thing to do, but here’s why you have to, especially in your start up phase:
If your paid and unpaid hours add up to 1.225 hours per calendar year you will be entitled to the self employment deduction (when you qualify for being self employed) This beauty deducts your profit (revenue -/- costs) with €7.280 per year!
You may add €2.123 to this 3x within your first 5 years of self employment. I need to repeat this because keeping track of your time is not the most fun to do: the first €9.403 that you make will be tax free!
How are you going to get your pricing and income target up to date if you don’t know how much time you spend on your business?
Unpaid work creeps up fast and while you should be far from shy of that in your start up phase you do need to work towards a business module that actually pays your bills and feeds your Soul Goals.
If you follow my two shout outs you have already got your lovely behind covered for about 80% when it comes to income taxes, BTW and childcare allowances.
In the words of the mighty swoosh: JUST DO IT.
PS: You can still sign up for the BTW training, coming up on Wednesday! (There’s a replay available)