Running an interior design business means juggling procurement, design fees, freelancers, and client billing at the same time. Our accounting services are built around tailored financial solutions for that reality, rather than a generic small business template. These services cover everything from monthly bookkeeping to year-end filing.

We understand the unique financial challenges of project-based income, and we ensure compliance with VAT, payroll, and Companies House deadlines as standard, not as an add-on.

We Handle VAT For Design Services, Furniture And Overseas Suppliers

VAT gets complicated fast in this industry. You may need to charge VAT on design services, on furniture you supply, and deal with VAT on goods bought from overseas suppliers, all within the same project. VAT treatment differs for design services versus product supply, and we keep the two separate on your return. Interior designers often assume standard VAT rules apply everywhere, but overseas suppliers change things fast.

The VAT registration threshold sits at £90,000 of taxable turnover. Many designers cross that threshold sooner than expected once procurement is added to design fees, and incorrect invoicing can push a VAT-registered business over it without anyone noticing. We handle your VAT registration, VAT compliance and ongoing VAT returns so nothing gets missed. VAT on expenses like fuel, materials and subcontractor invoices is often missed too, and we make sure it isn't.

We Keep Track Of Client Deposits, Staged Payments And Disbursements

Client deposits, staged payments and disbursement arrangements all need to be recorded properly depending on when the money is actually earned, not just when it lands in your account. Get this wrong, and your figures will look better or worse than reality.

Disbursement arrangements, where you purchase materials strictly on a client's behalf and recharge the exact original purchase cost, are treated differently from a standard sales invoice. Costs related to delivery or storage are often invoiced directly to the client too. We set your bookkeeping up so recharged expenses, deposits, and staged payments are recorded correctly from the start, so you maintain clarity over every project. We help you invoice clients accurately from the first deposit through to final handover.

We Manage Freelancers, Subcontractors And Other Professionals

Most design studios rely on contracted help at some point, from freelance designers and CAD specialists to installers, tradespeople and other professionals brought in for specific projects. Interior designers who bring in extra contracted help for a big install often assume it works like hiring a member of staff, and that assumption gets expensive fast. Where CIS applies, contractors must deduct 20 percent from payments to subcontractors, and getting that wrong causes real problems with HMRC.

If a project needs extra creative assistance for a busy stretch, we account for that correctly from the start. Freelancer invoices, software subscriptions and marketing expenses all get coded correctly, so nothing gets missed when we prepare your accounts. We handle payments to freelancers properly, including CIS deductions where relevant, so you are not left guessing at year-end accounts time.

Many designers start out as a sole trader because it is simple. As project-based income and project-based billing grow, a limited company often becomes the better business structure, both for tax and for protecting you personally if a client dispute or project goes wrong.

A limited company can offer liability protection around client deposits and contracts that a sole trader does not have. Incorporation can also save tax for higher-earning designers once profits move past a certain point, since UK Corporation Tax runs from 19 percent for smaller companies up to 25 percent at the main rate, depending on profit.

We review your business structure honestly, based on your actual financial needs, tax position, and business needs, rather than steering you into whichever option is easiest for us to administer across all your projects.

As accountants for interior designers, our pricing reflects real project data rather than guesswork. Based on the interior design projects we take on, most sole traders pay between £60 and £150 a month for core accounting and tax return support. VAT-registered limited companies, including studios with procurement, staff, or contractors, typically pay between £150 and £350 a month once bookkeeping and VAT returns are included.

The exact figure depends on your turnover, your VAT position, your tax returns, and how much bookkeeping support your design business needs. Every interior design business is different, which is why your quote is built around your actual projects rather than a template. Our accounting services scale as your studio grows, so you are never paying for more than you need.

Staff costs and software costs both get folded into your monthly numbers, not left as a year-end surprise. Bookkeeping mistakes around expenses are one of the most common reasons small design businesses pay more tax than they need to. Staff expenses, studio running expenses, and disbursed costs are all treated differently for tax purposes, and mixing them up costs you money.

This is a rough guide, and your actual cost will vary depending on your specific business. We will always give you a clear, fixed quote before any work begins, so there are no surprises later.