If you prefer reading...

We're in the process of turning all these questions and more as quick video snippets, but if you prefer reading, here is a list of FAQs.
The traditional kind!

Why is your pricing / month when it says 12 months?

We think it's easier for people to get an idea of how much they pay for their accounting on a monthly basis. There are things that we do on a regular basis, like payroll and the included quickbooks subscription to name a few, however there are things that need to be done once a quarter or once a year, like VAT returns and year end accounts.
Instead of sending you complicated quotes, we wanted to be transparent, offer the same price to everyone and communicate the pricing in the simplest way possible.
When you join us, you pay monthly, but the idea is that we're your accountants for the year so that we can do all the work that's required for the whole year.

What is IR35?

IR35 is another name for the off-payroll working rules. It’s designed to assess whether a contractor is a genuine contractor rather than a ‘disguised’ employee, for the purposes of paying tax.

Contractors who work through their limited company enjoy a level of tax efficiency. While they don’t usually get employee benefits (like holiday and sick pay), they have flexibility and control over their work. Some contractors and their clients try to take advantage of this tax efficiency by working as if they’re self-employed, when for all intents and purposes they are employees. HMRC has set these off-payroll working rules (IR35) to tackle this.

We are preparing resoucres to support freelance creatives affected by this legislation and we will add a link to the page here soon.

What can I include as business expenses?

Basically, anything that's needed 'wholly and exclusively' for your business is tax deductible, for example: Stationery, IT equipment, Software, Premises rental, Internet access, Marketing, Business phone and internet bills, Travel to customer premises (train tickets, Motor expenses etc...).

Can I claim the use of my home as a business expense?

Yes, you can. HRMC states it is possible to claim back expenses for a room in your home, for the hours you use it for business purposes. This means that you can claim for electricity, heating, water, council tax and mortgage interest for the use of your home as an office space. You will need to take into account how many hours a week you are using the space and then calculate the cost of the room per hour. These amounts would normally be charged in your accounts to ‘use of home as office’.

The ‘use of home’ allowance is a little complicated, and changes whether you're Self employed or a Limited company. We can help you calculate this based on our experience working with customers in the creative sector.

What are the advantages of trading as a limited company?

Other than it being the most tax efficient way, with more tax planning opportunities than being self employed, perhaps the most attractive benefit of trading as a limited company is the aspect of limited liability.

Being Limited protects your personal assets should the company run into financial difficulty.

The ownership of a limited company can be easily divided up through the sale of shares. The shares can be further used as a means of generating capital i.e. selling shares in your company.

How do I pay myself through the Limited company?

Typically you will pay a salary to yourself from your own company, plus, if the company makes a profit, dividends.

Normal PAYE rules apply for salaries. Income tax and employees National Insurance (NI) is taken out of your gross salary. Your limited company, as your own employer pays employers National Insurance (NI)

We suggest setting aside 30% of everything you earn for Income tax & NI and keep the rest as your salary every month so that at the end of the year there will be enough to pay what's due.

How do I make sure I put enough aside to pay my tax bill?

We suggest setting aside 30% of everything you earn, this should cover you for tax and national insurance, but you will be able to adjust this over time as you get a feel for your likely tax bills.
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The biggest mistake is to not put anything aside and get a shock at the end of the year when the tax bill arrives.

Will I need a business bank account?

It's not strictly a legal requirement, but we highly recommend that you set up a separate business bank account. A limited liability company is a separate legal entity and its money must be separated from your own personal finances. There are quite a few new banks that offer affordable and easy to set up business bank accounts.

Will I have to register for VAT?

No, not unless you hit the VAT threshold, which is currently £85,000 for the year commencing April 1st 2021. You must register for VAT when your turnover rises above the threshold in the previous 12 rolling months, or if you expect it to do so in the next 30 days.

You have to start keeping records and charging VAT to your customers from the date of registration, which is usually the month after your annual turnover exceeded the threshold.

What are the advantages of being VAT registered?

Even if below the threshold, many people choose to register for VAT to give their business more ‘kudos’ with customers, or simply to make it appear larger than it really is – and this is entirely up to you.
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If you do choose to register for VAT there is the advantage of being able to claim the VAT back on everything you purchase for the business.

What if the company doesn’t take off or I no longer need it?

A Limited company that has not traded for at least three months can voluntarily apply for Companies House and HMRC to remove their company from their register. This can be done by following a simple process.

What is a registered office?

The registered office is the address to which government bodies – primarily Companies House and HMRC, may address official communications, notices and reminders relating to the company.

How easy is it to switch to Accounts Studio?

Switching to Accounts Studio from another accountant is quick and simple. We will manage the entire switching process, including contacting your previous accountant and arranging for the transfer of records, and notifying HMRC and Companies House of the change. We've created a page dedicated to this - check it out here >

Frequently asked
creative freelancer questions

Sole trader vs limited company - why and when should I incorporate?

Subscribe to our channel

What records do I need to keep?

How much should I set aside for taxes throughout the year?

What expenses can I use to offset my tax?

How do I pay myself from my limited company?

Do you have a question you'd like Mark to answer?
Just fill in the form below and we'll make sure to publish the answer on our channel.

If you prefer reading...

Only for creatives!

Our services & prices

Sole Trader

£30

Ltd Company

£95

Ltd Company + VAT

£125

You're in good hands

Stop stressing
about your tax filings

Frequently asked creative freelancer questions

Sole trader vs limited company - why and when should I incorporate?

Subscribe to our channel

What records do I need to keep?

How much should I set aside for taxes throughout the year?

What expenses can I use to offset my tax?

How do I pay myself from my limited company?

Do you have a question you'd like Mark to answer?Just fill in the form below and we'll make sure to publish the answer on our channel.

If you prefer reading...

Only for creatives!

Our services & prices

Sole Trader

£30

Ltd Company

£95

Ltd Company + VAT

£125

You're in good hands

Stop stressingabout your tax filings

Frequently asked
creative freelancer questions

Do you have a question you'd like Mark to answer?
Just fill in the form below and we'll make sure to publish the answer on our channel.

Stop stressing
about your tax filings