Priya will need to keep track of the money she earns and the costs that relate to her work. This includes keeping records of invoices, payments from clients and business-related expenses such as software subscriptions or platform fees. Keeping her records organised now will save her a lot of stress later.

Priya also needs to understand exactly what records she should keep and how long she needs to hold on to them. Digital copies of invoices, receipts, bank statements and platform reports make it much easier to stay organised throughout the year.

As someone running a business, Priya will be reporting this income in her tax return and depending on how things grow, she may have other tax obligations to think about in the future. Knowing what’s required upfront means fewer surprises down the track.

Priya works full time, but her employer won’t be withholding enough tax to cover what she will likely owe at the end of the financial year taking into account her freelance income. It is up to Priya to withhold tax from her freelance income to avoid a bill at tax time. She will need to set money aside as she earns and if her freelance income grows, she may be required to start paying tax instalments during the year.