Unless incorporated, free lancer’s fiscal year end is in December. But the tax need not be filed until April.

End of April means a $12,000 tax bill paid immediately. But $12,000 means quarterly instalments are $3,000. But the first instalment was supposed to be paid in March. So $12,000 grows to $15,000. And the next instalment is just two months away.

But once the two-year cycle is complete and revenues are somewhat stable, the system works pretty good. That second year is awful for some entrepreneurs who manage to make a reasonable income.