Don't get surprised by a tax bill in year one
Nobody withheld anything, and you spent it.
Two things surprise nearly every first-year creator: you owe tax that nobody withheld, often in instalments during the year, and gifted product is frequently taxable at retail value in many jurisdictions.
The defence is boring and effective — a fixed percentage of every payment set aside from your very first invoice.
Scale
What it does
Automatic set-aside
Set your percentage once and see what to reserve from every payment as it comes in.
Quarterly view
Estimated tax broken down by quarter, so instalment deadlines aren't a discovery.
Saved-so-far tracking
Set an annual target and watch progress against it, rather than hoping.
Gifted product logged
Record gifted items with a value when they arrive, while you still remember what they were worth.
Deductible expenses in one place
Receipts attached to expenses all year means an export rather than an archaeology project.
How it works
- 1Set your tax set-aside percentage in Settings.
- 2Log gifted product as it arrives.
- 3Keep receipts on expenses through the year.
- 4Export the numbers your accountant asks for.
Questions
Is this tax advice?
No. sproutUGC helps you track and reserve; rules vary by country and a real filing deserves a professional. What it prevents is arriving at year-end with no records and nothing set aside.
What percentage should I set aside?
It depends entirely on your jurisdiction and income level — the default is a starting point, not a recommendation. Confirm the right figure locally, then let the app apply it consistently.
Which plan includes the Tax Center?
The Tax Center is included on Scale.
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