Design work is often billed as 50% deposit upfront, 50% on delivery, or in project milestones. Under the cash basis, which most sole traders use, each payment counts as income on the date you receive it — so a deposit taken in March for a website delivered in June is reported in the March quarter, and the final payment in the June quarter. This timing matters more than it seems, since a run of deposits taken late in one quarter can shift your reported income between periods in a way that doesn't match when the actual work happened.
Many designers run a mix of ongoing monthly retainer clients (predictable, recurring income) and one-off project work, sometimes sourced through platforms like Upwork or 99designs that take a commission before paying out. As with any platform work, your qualifying income is the gross project value before the platform's cut, not your net payout — the platform fee is claimed back separately as a business expense.
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Under the cash basis, which is the default for most sole traders, it counts as income on the date you receive it, not the date you deliver the finished project. A deposit taken in one quarter and the balance paid the next means each payment is reported in its own quarter.
It's the full gross project value before the platform deducts its commission. The platform's fee is claimed back separately as a business expense, reducing your taxable profit but not your gross qualifying income.
Yes, all self-employment income combines into one qualifying income figure, whether it comes from ongoing monthly retainers or one-off project work.
Yes, software subscriptions used directly for client design work are a normal allowable business expense.
Your self-employment income needs its own Self Assessment reporting once it's above £1,000 a year, but your employed PAYE income is handled separately and doesn't combine with your self-employment income for the MTD threshold.