🧑‍💼 Freelancer specialists · Sole trader to Ltd Co

Freelancer accountants for London. Designers, devs, consultants & more.

Sole trader designer doing your first SA? Senior consultant earning £80K and wondering when to incorporate? Photographer / videographer juggling client work, course sales and Stripe payouts? We work with the full freelance spectrum — and we know when to stay sole trader, when to incorporate, and how to keep MTD ITSA from biting. Open Mon-Sat 10am-7pm.

★★★★★ 4.8/5 from 100+ reviews · MTD ITSA & Ltd Co conversion specialists · King's Cross N7
£495+
Sole Trader SA
£600/yr
MTD ITSA Quarterly
£1,200
Ltd Co Tier 1
Mon–Sat
10am to 7pm
Every freelance discipline supported

Whatever you freelance in, we get the workflow.

Most freelancers we work with span at least two disciplines. The accounting principles are the same — the platforms, contract structures and expense profiles differ.

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Designer
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Developer
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Copywriter
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Consultant
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Photographer
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Videographer
Why freelancers need a specialist accountant

Generalist firms treat you like a small business. You're not.

Sole trader vs Ltd Co decision. MTD ITSA from April 2026. Home office expenses. Multi-stream income. International client invoicing. Four problems below show up in nearly every freelancer onboarding from a generalist firm.

Symptom #1

"I think I should incorporate but nobody's actually shown me the numbers."

The sole trader vs Ltd Co decision should be a 30-minute spreadsheet exercise. Most generalist firms either default to sole trader (because it's easier for them) or reflexively recommend Ltd Co (because the fees are higher) without modelling your specific position. We model both options on a free 15-minute call — typical tipping point is around £40-50K of net profit but it depends on your dividend mix, pension goals and family circumstances.

Symptom #2

"I'm earning £55K as a sole trader and someone said I now need MTD?"

Yes — from April 2026 every sole trader and landlord above £50,000 turnover must file quarterly digital submissions to HMRC under MTD for Income Tax. Annual self-assessment is no longer enough. £150/quarter (£600/year) for the quarterly service. At your scale incorporating to a Ltd Co usually saves money AND removes MTD ITSA entirely.

Symptom #3

"My old accountant claimed £312 'simplified home office' and that was it."

The HMRC simplified flat rate of £6/week (£312/year) is the lazy default. For most home-based freelancers in London, the actual proportional method delivers a much higher claim — typically £1,500-£3,000/year covering a percentage of rent or mortgage interest, council tax, utilities and internet. Plus you can claim software, equipment, professional subs, training, marketing and mileage. Most freelancers we onboard have been under-claiming by £1,500-£3,000/year.

Symptom #4

"I have client work + course sales + a paid newsletter and they're all in different platforms."

Modern freelance careers layer multiple income streams: client invoices in Stripe / Wise, course sales in Gumroad / Teachable, paid newsletters in Substack, affiliate income, royalties. Each platform has different fees, different VAT treatment, different reporting. We integrate every income source into a single monthly P&L with stream-level reporting so you can see which channels actually pay.

The decision every successful freelancer faces

Sole trader or Limited Company? The numbers usually tell you.

For most freelancers the tipping point is around £40-50K of net profit. Below that, sole trader is usually fine. Above it, incorporating typically saves several thousand pounds AND removes MTD ITSA. Here's the framework.

Why this matters

Above £50K profit, Limited Company usually wins on tax + admin + MTD removal.

As a sole trader you pay Income Tax (20%, 40% or 45%) and Class 4 National Insurance (currently 6% / 2%) on every pound of profit above the personal allowance. As a Limited Company director you can take a small salary (use up the personal allowance, get NIC credits) and the rest as dividends — taxed at 8.75% / 33.75% / 39.35% with no NIC.

The maths usually breaks in favour of incorporating once profit clears around £40-50K. Add to that: from April 2026, sole traders above £50K turnover must file quarterly under MTD ITSA (£600/yr). Limited Companies file Corporation Tax not Income Tax — MTD ITSA does not apply.

The other Ltd Co advantages: you can pay yourself flexibly across tax years, you can have the company contribute to your pension (deductible against profit), you can build retained earnings for a future house deposit or business investment, and you have a vehicle for Business Asset Disposal Relief at 14% if you ever sell. We model the specific numbers on a free 15-minute call.

~£4-8K
Typical annual tax saving for a freelancer doing £80K profit by incorporating to a Limited Company versus continuing as sole trader.
⚙ Freelancer Health Check

Find your service mix and fee. Five questions, one minute.

Answer five quick questions about your freelance setup. We'll show you the right service mix, an estimated fee, and flag whether MTD ITSA applies or whether incorporation makes sense at your level.

Question 1 of 5
What's your freelance discipline?
Designer / creative
Developer / tech
Consultant / coach
Content / media creator
Question 2 of 5
What's your annual turnover?
Under £30K
£30K – £50K
£50K – £100K
£100K+
Question 3 of 5
What's your current structure?
Sole trader (self-employed)
Limited company (just me)
Limited company with team
Just starting out
Question 4 of 5
Income stream complexity?
Single stream — client invoices
Client work + 1 product (course/book)
Multi-stream (client + course + newsletter)
Mostly retainers / consulting
Question 5 of 5
International client work?
UK clients only
Occasional EU / US clients
Regular international (multi-currency)
Mostly international
Your result

Your freelancer position

Based on your answers, here's the right setup.

Estimated fee £—
💬 Send my result to your team
Freelancer pricing snapshot

The fees a freelancer actually pays. Standard, transparent.

Below is the typical service mix and standard fee. Quotes are issued in writing within 24 hours of the call — request one to see what discounts and seasonal offers are available in the current period.

Freelancer service fees

All prices exclude VAT. From the master service-fee schedule.

ServiceDescriptionFee
Self Assessment — Tier 1 (Standard)
Employed + side-hustle, dividends, simple personal tax
Income, expenses, allowances, HMRC submission from £495/year
Limited Company Formation
When the numbers stack up — usually £40K+ profit
Companies House filing, share structure, VAT and PAYE setup from £400one-off
Limited Co — Tier 1 (Solo Director)
Most popular post-incorporation
Annual accounts, CT600, confirmation statement from £1,200/year
Freelancer Bookkeeping (Light)
Stripe/PayPal/Wise integration, multi-stream
Bank reconciliation, income stream tracking, monthly reporting from £125/month
VAT Registration + Returns
Once turnover crosses £90K — or voluntary registration
Registration (£195 one-off) + Standard quarterly VAT (£195/qtr) from £195/quarter
Tax Planning Workshop
Bespoke strategy — pension, structure, multi-year planning
Diagnostic, team-built strategy, secure portal delivery £1,200fixed
Need the full fee list? See our complete service-fee schedule covering every service line.
Real freelancer outcomes

What our freelance clients actually got back. Real numbers.

Three recent examples from a freelance designer, a senior consultant and a multi-stream content creator. Names changed, numbers real.

Freelance designer — sole trader

£2,400 of unclaimed expenses recovered on first SA

A freelance brand designer doing £42K of client work had been with a budget online firm for two years. Their SA had claimed only the £312 simplified home-office allowance and a token £200 for "software" — nothing else. We rebuilt the return claiming proper proportional home office (rent + utilities + internet, ~£1,400/yr), Adobe Creative Cloud and Figma subscriptions, an iPad Pro purchase, professional photography for portfolio, business mileage and 50% phone bill. Total additional expenses claimed: £2,400. Tax saving at 20% basic rate: £480 in year one, plus the same baseline going forward.

Year-1 tax saving
+£480/yr
Senior consultant — incorporation

£7,200/yr saved by incorporating at the right moment

A senior management consultant doing £95K of profit as a sole trader was paying full income tax + Class 4 NIC and was about to be hit with MTD ITSA from April 2026. We modelled the limited company position — optimal salary plus dividends saved £7,200/year on the same profit. We handled the formation (£400 one-off), set up payroll, registered for VAT (voluntary, since most clients can recover), and onboarded onto Tier 1 accounts at £1,200/year. Net saving year one after fees: £5,400. Plus MTD ITSA no longer applied.

Net annual saving
+£5,400/yr
Multi-stream content creator

Stream-level P&L revealed the newsletter was paying better than client work

A freelance copywriter was juggling client work via Stripe (~£60K/yr), an online course via Gumroad (~£18K/yr), a paid Substack newsletter (~£12K/yr) and affiliate income (~£4K/yr). Her old accountant lumped it all together. We rebuilt with stream-level P&L: client work after fees and time investment was running at £45/hr effective; the newsletter at £180/hr (because the writing time was already happening for the audience). She rebalanced — fewer clients, more time on the newsletter and a second course. Within 12 months total income up 28% on the same hours.

12-month income uplift
+28% on same hours

Freelancer-specific quote, in writing within 24 hours.

Tell us your discipline, turnover, structure and stream mix. We'll send a written fixed-fee quote covering exactly the services you need — and any current discounts or offers in the period.

Freelancer accounting questions answered

Frequently asked questions.

If your question isn't here, message us on WhatsApp or book a free 15-minute call.

How much does a freelancer accountant cost in London?+
A solo freelancer typically pays £495-£695/year for Self Assessment if below the £50,000 MTD threshold (Tier 1 or Tier 2 SA), or £150/quarter (£600/year) for the MTD for Income Tax quarterly service if above. Once you incorporate to a limited company (usually worthwhile above £50,000 net profit), Tier 1 accounts are £1,200/year. Add bookkeeping at £125/month for clean books and Stripe/PayPal reconciliation. Most established freelancers settle between £200 and £400/month bundled. All prices exclude VAT.
Should I be a sole trader or a limited company as a freelancer?+
The tipping point for most freelancers is around £40,000-£50,000 of net profit (after expenses, before tax). Below that figure the tax saving from incorporating is usually too small to justify the £1,200/year accountancy cost and the extra admin. Above that figure you typically save several thousand pounds per year by drawing optimal salary plus dividends through a limited company instead of paying full income tax and Class 4 NIC on self-employment profits. Above £50,000 turnover MTD for Income Tax also becomes mandatory for sole traders — incorporation removes that requirement entirely (Ltd Cos file Corporation Tax not Income Tax). We model your specific numbers in a free 15-minute call.
As a sole trader freelancer earning £55K, do I need MTD for Income Tax?+
Yes. From April 2026 every sole trader and landlord with turnover above £50,000 must file quarterly digital submissions to HMRC under Making Tax Digital for Income Tax. The quarterly service is £150/quarter (£600/year) including the four quarterly submissions plus year-end finalisation. At your turnover level you should also seriously consider limited company conversion — it usually saves several thousand pounds per year above £50K profit AND removes the MTD ITSA requirement entirely (limited companies file Corporation Tax, not Income Tax).
What expenses can I claim as a home-based freelancer?+
Home-based freelancers can claim either (a) HMRC's simplified flat rate of £6/week (£312/year) for use of home as office without records, or (b) actual proportion of household costs (rent or mortgage interest, council tax, utilities, internet) calculated by the percentage of your home used for work and the percentage of time it's used. Beyond home office you can claim software subscriptions (Adobe, Figma, hosting), equipment (laptop, monitor, camera), professional subscriptions, training and courses, marketing and website costs, business mileage at 45p/mile, and a proportion of phone bills. Most freelancers we onboard have been under-claiming by £1,500-£3,000/year.
How do you handle multi-stream income — client work + courses + consulting?+
Modern freelance careers often layer multiple income streams: 1-to-1 client work, online course sales, paid newsletter, consulting retainers, affiliate income, royalties. Each stream may have different VAT treatment, different invoicing platforms (Stripe, Gumroad, Substack, Teachable) and different expense allocations. We integrate every income source into a single monthly P&L with stream-level reporting so you can see which channels actually pay and which just feel productive. Included in the standard freelancer bookkeeping service.
How do you handle international clients — US, EU, AUD?+
International client invoicing has three considerations: VAT (UK B2B services to overseas businesses are usually outside the scope of UK VAT, but B2C may be different), foreign exchange (USD, EUR, AUD payments converted via Stripe / Wise / PayPal at varying rates), and double-tax treaty considerations on any withholding. We set up your invoicing template, multi-currency in Xero or QuickBooks, and the FX gain/loss disclosure on your books. For most freelancers there are no US or EU tax filings required if you have no permanent establishment there — but we'll confirm on a free 15-minute call.
Do I need to register for VAT as a freelancer?+
VAT registration is compulsory once your taxable turnover passes £90,000 in any rolling 12-month period (the threshold for 2026). Most freelance services to UK business clients are standard-rated at 20%. Services to overseas businesses are usually outside the scope of UK VAT. Many freelancers voluntarily register below £90K because their clients can recover the VAT and registration enables VAT recovery on equipment, software and overhead. Flat rate scheme can sometimes work for low-overhead freelancers (16.5% effective rate for 'limited cost' businesses, otherwise lower depending on sector). We model the scheme comparison annually.
What about pension planning as a freelancer?+
Freelancers don't get an employer pension by default, so building one yourself is essential. Sole traders contribute to a personal pension (SIPP or stakeholder) — contributions get basic-rate tax relief at source (you contribute £80, the pension provider claims £20 from HMRC), with higher-rate taxpayers claiming further relief via Self Assessment. Limited company directors can have the company contribute directly to a pension (employer contribution), deductible against company profit and avoiding personal income tax entirely. The Tax Planning Workshop (£1,200 fixed) covers optimal contribution strategy for your structure and income level.

Freelancer accountants in King's Cross, London.

Our office sits at 39-41 North Road, London N7 9DP — five minutes from Caledonian Road tube and ten from King's Cross St Pancras. We work with freelancers across Islington, Camden, Hackney, Westminster, Tower Hamlets, the City of London, Soho, Shoreditch, Hoxton and the wider London freelance community, plus a sizeable cohort of UK-wide and international clients working remotely.

Most engagements are delivered remotely via video call, secure portal and our client area — perfectly suited to the freelance work model. For freelancers who prefer to meet, the King's Cross office is open Monday to Saturday 10am to 7pm.

Office39-41 North Road
London N7 9DP
HoursMon–Sat
10am to 7pm
Phone07450 258 975
Emailkris.nick@loyals.uk
TubeCaledonian Road · 5 min walk

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