Client Story
How we structured a Nunhead freelance film editor's affairs for £7,000 saving
Client M is a Nunhead freelance film and video editor working for production companies and agencies, whose income had grown past £65,000. He was a sole trader paying higher-rate income tax plus Class 4 NIC, with expensive equipment he'd bought outright, and hadn't considered a company structure, capital allowances or pension provision.
We modelled sole trader versus Ltd company and recommended incorporation. We set up the company, structured the remuneration as salary plus dividends, claimed capital allowances on his editing equipment and workstations, set up an employer pension contribution as a tax-efficient extraction, and captured his ongoing expenses (software subscriptions, home studio, professional development, travel).
Total outcome: annual tax saving of £7,000 through incorporation, capital allowances on his equipment, proper remuneration structuring and pension provision, with limited liability and simple cloud bookkeeping set up for the new company.