Welcome to the Treehouse Community
Want to collaborate on code errors? Have bugs you need feedback on? Looking for an extra set of eyes on your latest project? Get support with fellow developers, designers, and programmers of all backgrounds and skill levels here with the Treehouse Community! While you're at it, check out some resources Treehouse students have shared here.
Looking to learn something new?
Treehouse offers a seven day free trial for new students. Get access to thousands of hours of content and join thousands of Treehouse students and alumni in the community today.
Start your free trial
Peter Hupuczi
9,169 PointsHow to define your own salary at the beginning.
Defining a salary is great thing. But how would you define your own salary at the beginning when you only have few jobs on a monthly basis. I'm currently take 20% percent off for taxes, 10% off for profit, and the rest in my wallet from the entire income per project.
I'm not sure this is the best way to handle mooney for a freelancer business. Anyone have a better way or som sort of advise?
Thanks
3 Answers
Juergen Alker
1,708 PointsYep, but the basic principle stays the same ... especially if you work from Hungary and work in the UK you should get a good tax consultant ... these things can be tricky and every government wants to get their share of your income ...
Juergen Alker
1,708 PointsNot sure where you live and how your tax situation is.
But usually you would do it like this:
You charge 10 days, each 300 Euro. Lets assume you have to add 20% Vat. So that is 3.000 Euro, plus 600 Euro VAT: 3.600.
You put the 600 on the side right away. Plus a certain % that fits your income tax. E.g. here in germany roughly 33%. So you would put another 1.000,- Euro aside.
This is super rough. But make sure that you have a second bank account for taxes, so you don´t get confused ...
But the best advise: get a good tax guy!
Peter Hupuczi
9,169 PointsThank you for the answer. :)
I'm working from Hungary, but my company is in the United Kingdom. I usually charge a fixed price on projects which is based on my hourly price I have calculated.