How we structured a West Kensington freelance designer's affairs for £6,800 saving
Client M is a freelance brand and digital designer in West Kensington working for agency and direct clients. She'd been operating as a sole trader as her income grew past £65,000, paying higher-rate income tax plus Class 4 NIC, and hadn't considered whether a Ltd company would save tax or how to make pension provision efficiently.
We modelled sole trader versus Ltd company for her profit level and client base, and recommended incorporation. We set up the company, structured her remuneration as salary at the NIC-optimal level plus dividends, set up an employer pension contribution as a tax-efficient extraction, and made sure all her legitimate expenses (equipment, software subscriptions, home studio, professional development, travel to clients) were properly captured.