In this guide, you’ll learn the key considerations, work through a practical example and find useful next steps. Take your time and use the free worksheets to put ideas into practice.
What you’ll take away
- Estimate a cautious baseline
- Create separate pots
- Prepare for late payment
Estimate a cautious baseline
Use a lower-than-average income month for essential spending.
Create separate pots
Set money aside for tax, operating costs and personal living costs.
Prepare for late payment
Set invoice terms and follow up promptly and professionally.
Build a reserve
Aim for a buffer appropriate to your business and household risks.
What to gather
- Six months of income history if available
- Fixed personal and business costs
- Outstanding invoices
Putting your learning into practice
Use the guidance above to identify the information you need and the questions to investigate. Consider:
- Estimate a cautious baseline.
- Create separate pots.
- Prepare for late payment.
- Build a reserve.
This is general financial education, not a personal recommendation, an assessment of suitability or an invitation to buy or arrange a financial product. Check current official information and obtain appropriate professional advice for individual circumstances.
Further help
For up-to-date rules and support, see this UK guidance resource. Check which rules apply in your part of the UK.
Keep learning
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