Accountants for Grapahic designers

Accountants for Graphic Designers

If you have been working as a full time freelance graphic designer, it has probably been a fun and bumpy ride. What you find out when freelancing is that there are some important things that you need to take care of as your own boss.

Things like accounting and taxes, for example. That is why we have created this accounting guide for you and all other self-employed graphic designers in the UK. It does not matter if you are just starting out or only want to understand your allowable expenses better. We’ll answer your most pressing questions.

Accountants for graphic designers

What is the Self-Assessment Tax
Return filing date for Graphic designers?

First off, what is Self-Assessment Tax Return? And why do you need to file it? Well, because you are self-employed you are required by law to pay your taxes under Self-Assessment.

This means that you have to submit a personal Tax Return by 31 January every year. You provide details of your trading income (details on what trading income is can be found in the next paragraph), income tax and National Insurance due. You will also pay your tax and Insurance due.

 

Get a Quote Now

 

What are the allowable expenses for
Graphic Designers?

Allowable expenses are all the important costs you have to keep your graphic design business running. These expenses are tax deductible. That means you do not pay tax on the money you spent on these expenses.

Allowable expenses are usually only tax allowable if they are exclusively incurred in the performance of work. All allowable expenses have to be supported by receipts.

Allowable expenses will reduce your taxes but be careful because incorrect claims can attract gross penalties.

Below is a list of twelve allowable expenses that are relevant to freelance graphic designers:

1. Computer & Printer

2. Website Development

3. Licenses, Software and Subscriptions

4. Phone and Internet Access

5. Travel costs incurred on the job

6. Utility costs

7. Rent

8. Wages paid

9. Training

10. Marketing

11. Bookkeeping

12. Bank Charges

What type of accountancy services will Graphic designers need – this will depend on whether they limited companies or self employed

First off, what is Self-Assessment Tax Return? And why do you need to file it? Well, because you are self-employed you are required by law to pay your taxes under Self-Assessment.

This means that you have to submit a personal Tax Return by 31 January every year. You provide details of your trading income, income tax and National Insurance due. You will also pay your tax and Insurance due.

Choosing an online accountant – Check their review on Google – and qualifications

Choosing the right online accountant for your graphic design business is a very vital business decision. You will have to learn to assess accountants effectively.

· Pick a certified accountant.

· Pick an accountant with relevant experience.

· Ask government and business associations for advice on picking the right
accountant.

· Use your social networks. Check the accountant’s reviews on LinkedIn and Google.

· Check what bookkeeping software the accountant uses

· Always negotiate the fees you pay. Save money.

Choosing the right Accountants in London

1. Check qualifications: Make sure to check the accountant’s qualifications. It is legally required you’re your
accountant should have at least one of the following qualifications:

· ICAEW

· ICAS

· ACCA

· CIMA

· CIPFA

. AAT

2. Check experience level.

3. Check what online resources the accountant uses.

4. Make sure the accountant is a good communicator and is available when you need them.

The Structure of a Limited Company in
the UK

Sometimes, a solo freelance graphic designer could grow their business to the point where they would prefer to run it as a Limited Company. The following is a short guide on the basic structuring of a Limited Company in the UK to give you basic information that will assist in the decisions on who you should appoint as company officers.

· Directors: Private companies must have at minimum one director and there is no maximum to
the number of directors your company can have.

· Company Secretary: The role of the company secretary is non-obligatory. You do not need
to have one in a private company.

· Shares and Shareholders: You must have at least one shareholder and are allowed to
have as many shareholders as you want.

· A Registered Office: You must have a UK office.

The Benefits of the Veil of Incorporation

The veil of incorporation limits you from personal liability as a company director or company officer. But, business owners are liable for all business activities that did not follow the corporate laws. Limited liability is also called the
corporate veil.

A big advantage of incorporation is this limited liability that company owners get. It means that company owners are no longer responsible for the business’ debts or any infractions the company commits. This is only true as long as the company’s officers follow corporate guidelines. So check with your legal advisor for more information.

Filing your accounts and tax return

At the end of a fiscal year, all private companies prepare full annual accounts and company tax returns. You must make sure to file your accounts and pay tax to Companies House and the HMRC respectively.

Filing deadlines

· File your first annual account with the Companies House 21 months after registration with them.

· File your full annual accounts with the Companies House 9 months after the fiscal year ends for your company.

· Pay your corporation tax 9 months and 1 day after the accounting period for Corporation Tax ends (or tell HMRC that your company does not owe corporation tax).

· File your Company Tax Return 12 months after the accounting period for Corporation Tax is over.

Get A Quote Now

GM professional Accountants are Accountants based in London, our Tax advisors are specialists in small businesses and self employed individuals. we offer the whole package from registering you as self employed to bookkeeping services as well as the final accounts and tax returns. Manor park office address, 47 Gladstone Avenue, Manor park, London, E12 6NR, Ilford office address, Unit 14 Clements Court, Clements lane,Ilford,Essex,IG1 2QY Tel: 0208 396 6128,