Self-Employed Tax for UK Designers

As a sole trader you register with HMRC, keep records of your income and expenses, and pay income tax and Class 4 National Insurance on your profit through Self Assessment by 31 January after the tax year ends. From April 2026, sole traders with income over £50,000 must also keep digital records and send quarterly updates under Making Tax Digital.

By Sumair Roudani · Published 3 November 2026

This guide covers England, Wales and Northern Ireland for the 2026/27 tax year. It is general information, not tax advice.

Registering

Most freelance designers start as sole traders: you and the business are the same legal person, and you pay tax on its profit. Register for Self Assessment on GOV.UK by 5 October after the end of your first tax year. The other route, setting up a limited company, can save tax at higher profits but brings more paperwork. Speak to an accountant before choosing it.

If your design income in a tax year is £1,000 or less, the trading allowance covers it and you do not need to register.

What you pay

Class 2 National Insurance is no longer compulsory. If your profit is above the small profits threshold, you get State Pension credits automatically. The self-employed tax calculator works out your bill and how much to set aside from each invoice.

Key dates for the 2026/27 tax year

• 6 April 2026 to 5 April 2027: the tax year
• 5 October 2027: deadline to register if 2026/27 was your first year
• 31 October 2027: paper return deadline
• 31 January 2028: online return and payment deadline, plus your first payment on account for 2027/28
• 31 July 2028: second payment on account

Payments on account catch out many new freelancers. If your bill is over £1,000 and less than 80% of your tax was collected at source, HMRC asks for advance payments towards next year: half of this year's bill on 31 January and half on 31 July. So the first January can mean paying 150% of a year's tax at once. Set aside 25 to 30% of profit from the start.

Expenses designers can claim

You pay tax on profit, so every allowable expense lowers your bill. Typical ones for designers:

• Software and subscriptions: Adobe Creative Cloud, Figma, font licences, stock image sites, website hosting
• Equipment: computer, monitor, drawing tablet, camera, printer
• Working from home: HMRC's flat rate or a share of bills
• Phone and internet, business share
• Professional costs: accountant, insurance, professional bodies
• Marketing: portfolio site, printed samples, advertising
• Travel to client meetings (not your normal commute to a regular workplace)
• Training directly related to your current work

Clothing, lunches and client entertaining are generally not allowable. Keep every receipt digitally.

Making Tax Digital

Making Tax Digital for Income Tax is being phased in by income, based on your qualifying income (turnover from self-employment and property, before expenses):

• From 6 April 2026: qualifying income over £50,000
• From 6 April 2027: over £30,000
• From 6 April 2028: over £20,000

If you are in, you must keep digital records in compatible software and send a summary to HMRC every quarter, followed by a final return. Check where you stand on GOV.UK.

VAT

You must register for VAT once your VAT-taxable turnover passes £90,000 in a rolling 12 months. Below that, registering is optional. The VAT calculator handles adding and removing 20%.