CT600 for Graphic Designers: Complete Guide

Graphic design companies have straightforward CT600 requirements, but there are specific considerations around project income, software costs, and equipment. This guide covers what design businesses need to know.

Design Business Income

Types of Design Income

Income Type	CT600 Treatment
Logo design fees	Trading income (Box 150)
Branding projects	Trading income (Box 150)
Website design	Trading income (Box 150)
Print design	Trading income (Box 150)
Retainer fees	Trading income (Box 150)

All design income is trading income - it goes in Box 150.

Project vs Retainer Income

Structure	Recognition
Project-based	When work delivered/invoiced
Monthly retainer	As earned each month
Milestone billing	At each milestone

Common Design Business Expenses

Software Costs

Software	Cost Type	Deductible?
Adobe Creative Cloud	Subscription	Yes
Figma	Subscription	Yes
Sketch	Subscription/licence	Yes
Canva Pro	Subscription	Yes
Font licences	One-off or subscription	Yes

Hardware

Equipment	Treatment
Mac/PC	Capital allowance (AIA)
Monitor(s)	Capital allowance (AIA)
Graphics tablet	Capital allowance (AIA)
Printer	Capital allowance (AIA)

Other Expenses

Expense	Deductible?
Stock images	Yes
Home office costs	Partly (if working from home)
Professional memberships	Yes
Portfolio website	Yes
Business insurance	Yes

Working from Home

Home Office Deduction

If you work from home:

Option 1: Simplified Method

Flat rate based on hours worked
Currently £6/week (£312/year) no receipts needed

Option 2: Actual Costs

Calculate proportion of home used for business
Claim that proportion of bills
More complex but potentially higher

What Can Be Claimed

Cost	Claimable?
Rent/mortgage interest	Proportion
Electricity	Proportion
Heating	Proportion
Internet	Proportion
Council tax	Proportion

Capital Allowances

Equipment Purchases

Most design equipment qualifies for AIA:

Item	Cost	AIA	Tax Saving (19%)
iMac	£2,500	£2,500	£475
4K Monitor	£800	£800	£152
Wacom tablet	£400	£400	£76

When to Buy Equipment

For tax efficiency:

Buy before year end = this year's deduction
Buy after year end = next year's deduction
Plan purchases around your profit

Project Expenses

Client-Specific Costs

Expense	Treatment
Stock images for project	Deductible
Printing samples	Deductible
Travel to client	Deductible
Prototype costs	Deductible

Reimbursed Expenses

If clients reimburse you:

Reimbursement = additional income
Original cost = expense
Net effect = zero

Intellectual Property

Licensing Design Work

If you license designs (rather than sell outright):

Licence fees = trading income
May be ongoing revenue stream
Same CT600 treatment

Buying vs Subscribing

Approach	CT600 Treatment
Buy font licence outright	Often expense (if under £1,000)
Subscribe to fonts	Monthly expense
Buy software outright	Capital allowance
Subscribe to software	Monthly expense

CT600 Filing Example

Graphic Design Company Scenario

Annual Figures:

Design fees: £75,000
Software subscriptions: £2,400
Equipment (capital): £3,500
Home office: £1,800
Insurance/memberships: £600
Other costs: £2,000

CT600 Key Boxes:

Box	Description	Amount
150	Trading income	£75,000
155	Gross profit	£68,700
160	Net profit	£64,700
165	Trading profits	£64,700
300	Profits chargeable	£64,700
315	CT @ 19%	£12,293

Director's Salary

Optimal Salary Level

Most design company directors take:

Salary up to NI threshold (~£12,570)
Dividends for remaining profit

This is personal tax planning but affects CT600:

Salary = deductible expense
Higher salary = lower CT profit

When Using TinyTax

TinyTax handles graphic design company CT600s:

Enter design fees as trading income
Record software and equipment costs
Claim capital allowances automatically
CT600 generated

TinyTax is ideal for small creative businesses with straightforward accounts.

Need Help?

TinyTax makes CT600 filing simple for graphic designers. Enter your figures and the software calculates your tax automatically.

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