How to Start an Interior Design Business in the UK

Interior design is a growing industry in the UK, driven by property renovation, new-build developments, and the ongoing appetite for well-designed spaces. If you have the skills and an eye for design, starting your own business is entirely achievable. Here is how to get the practical side right.

Qualifications

No mandatory qualifications, but professional credentials help enormously:

• Degree or diploma in interior design, interior architecture, or spatial design
• BIID membership (British Institute of Interior Design) — the leading professional body. Registered Interior Designer status demonstrates competence.
• SBID membership (Society of British & International Design)

BIID membership requires relevant qualifications and experience, and carries significant weight with clients.

Sole Trader or Limited Company?

Most interior designers start as sole traders. Low cost, minimal admin, and works well while you build your portfolio and client base. A limited company may be worth considering once profits grow, particularly if you take on larger projects with more financial risk.

Registering with HMRC

Register for Self Assessment within three months. VAT at £90,000 turnover. Interior design services are standard-rated for VAT. If you also sell products (furniture, fabrics), those are also standard-rated. Voluntary VAT registration can be worthwhile if your clients are VAT-registered businesses.

Insurance

• Professional indemnity — essential. Covers errors in your design specifications or advice.
• Public liability — if you visit client properties or construction sites
• Contents/equipment — for samples, mood boards, and computer equipment
• Product liability — if you source and supply furniture or furnishings

Expect £200–£600 per year.

Claimable Expenses

• Software — CAD software, SketchUp, rendering tools, Adobe Creative Suite
• Sample materials — fabric swatches, paint samples, material samples
• Travel — to client properties, showrooms, and suppliers, at 45p per mile
• Home office or studio costs
• Professional memberships — BIID, SBID
• Training and CPD
• Marketing — website, portfolio photography, social media, advertising
• Phone and broadband
• Reference materials — design books, magazine subscriptions
• Equipment — computer, monitor, printer, camera
• Insurance premiums
• Accountancy fees
• Trade show attendance — entry fees, travel, accommodation

Accounted categorises your expenses automatically and keeps receipts matched to bank transactions.

Revenue Models

Interior designers typically earn through:

• Design fees — hourly rates (£50–£150) or fixed project fees
• Product sourcing commission — a markup on furniture and materials you source (typically 20–30%)
• Project management fees — for overseeing contractors and installations
• Consultation fees — for one-off advice sessions

Be transparent with clients about how you earn. Some designers charge a flat fee and pass products through at cost. Others charge a lower fee but earn commission on products. Both models work — just be clear.

Industry-Specific Tax Considerations

Product Purchases for Clients

If you buy furniture and materials on behalf of clients and invoice them, this is your turnover. It can push you above the VAT threshold quickly even if your profit margin is modest. Track carefully whether you are acting as principal (buying and reselling) or agent (facilitating the purchase).

Flat Rate VAT

If VAT-registered, the flat rate for architectural activities and technical consultancy is 14.5%. Compare with the standard scheme.

Home Office

If you work from a home studio, claim the appropriate proportion of household costs. The actual cost method usually gives a larger deduction than the flat rate.

Building Your Client Base

• Portfolio — professional photography of completed projects is essential
• Instagram and Pinterest — the primary social platforms for interior design
• Houzz — a major platform for connecting with homeowners
• PR — getting featured in interiors magazines and blogs
• Showroom relationships — furniture and fabric showrooms can refer designers
• Estate agents and developers — for show homes and new-build projects
• Word of mouth — satisfied clients are your best marketing

Bookkeeping Tips

• Separate business and personal finances
• Track product purchases and sales separately from design fees
• Invoice at project milestones — not just at completion
• Collect deposits — 30–50% upfront for design fees
• Monitor cash flow — large product purchases can strain your finances
• Set aside 25–30% of profits for tax

Accounted connects to your bank and sorts transactions with AI. Built for UK creative professionals.

Key Deadlines

• 31 January — Self Assessment and payment
• 31 July — second payment on account
• Quarterly — VAT returns if registered

Getting Started

Interior design is a fulfilling business with strong demand and multiple revenue streams. Build your portfolio, establish your professional credentials, and keep your finances organised from day one.

Ready to design your financial future? Sign up for Accounted and let Penny handle the bookkeeping while you create beautiful spaces.