Industry guide
Creative freelancer
From first invoice to Self Assessment — the key accounting and legal things every UK creative freelancer needs to stay on the right side of HMRC.
Register for Self Assessment
If your freelance income exceeds £1,000 in a tax year, register at gov.uk by 5 October in your second year of trading. If you also have a PAYE job, your freelance income is in addition to it — you will owe tax on the combined amount above your personal allowance.
Invoice professionally from day one
Each invoice needs: your name, address, invoice number, date, description of work, the amount, payment terms (14 or 30 days standard), and your bank details. Keep copies for at least six years.
What you can claim
Software subscriptions (Adobe, Figma, Notion), hardware (laptop, camera, hard drives — proportionate to business use), home-office costs, professional development courses, and client entertainment (limited) are all deductible. Your phone and internet are partially claimable.
IR35 — be aware of it
If you work for a single client full-time, under their direction, and they provide your equipment, HMRC may deem you a disguised employee (IR35). This means income tax and National Insurance as if employed. Maintain multiple clients and genuine working independence.
Class 2 and Class 4 National Insurance
Self-employed people pay Class 4 NI on profits above £12,570 (9% up to £50,270, 2% above). Class 2 has been abolished from April 2024. NI is due alongside income tax on your Self Assessment return.
Common mistakes
No contract before starting work
Scope creep and non-payment disputes are the two most common freelancer problems — both are almost impossible to resolve without a written agreement.
Ignoring IR35
Working exclusively for one client over many months, on their premises, under their direction is a red flag. HMRC can reclassify your income as employment and issue a backdated tax bill.
Not keeping receipts
Software subscriptions, equipment, and courses are significant deductions for most freelancers. Without records you cannot claim them — and HMRC can disallow any unsubstantiated expense claim.