How to Start a Marketing Consultancy in the UK

Marketing consultancy is a natural progression for experienced marketers who want independence and the ability to work across multiple brands and industries. Startup costs are minimal, demand is consistent, and the earning potential is strong. Here is how to set it up properly.

Qualifications

No mandatory qualifications, but professional credentials add credibility:

• CIM (Chartered Institute of Marketing) — the leading UK marketing professional body. Chartered Marketer status demonstrates expertise.
• IDM (Institute of Data & Marketing) — for data-driven and digital marketing
• Google, Meta, HubSpot certifications — demonstrate specific platform expertise

Sole Trader or Limited Company?

Most marketing consultants start as sole traders. If you work through agencies or on long-term placements, consider IR35 implications and whether a limited company is more appropriate. A limited company becomes tax-efficient at higher profit levels.

Registering with HMRC

Register for Self Assessment within three months. VAT at £90,000. If your clients are businesses, voluntary registration can be worthwhile.

Insurance

• Professional indemnity — essential. Covers you if your marketing advice or work causes a client financial loss. £200–£500 per year.
• Public liability — if you visit client premises
• Cyber insurance — if you manage client data or digital accounts

Claimable Expenses

• Software — analytics tools, SEO tools, social media management, email platforms, CRM
• Advertising spend — on your own marketing (not client ad spend passed through)
• Home office costs — flat rate or actual proportion
• Travel — to client meetings, at 45p per mile
• Training and CPD — courses, conferences, certifications
• Professional memberships — CIM, IDM
• Marketing — your own website, business cards, LinkedIn advertising
• Equipment — laptop, monitor, phone
• Phone and broadband
• Subcontractor costs — designers, copywriters, developers you engage
• Accountancy fees
• Co-working space

Accounted tracks your expenses and categorises them automatically.

Pricing

• Day rate — £350–£800 for experienced marketing consultants
• Hourly rate — £50–£120
• Monthly retainer — £1,000–£5,000+ for ongoing marketing management
• Project-based — brand strategy, campaign planning, website launch — priced per project

Retainer clients provide predictable income and are the foundation of a sustainable consultancy.

Industry-Specific Tax Considerations

Client Ad Spend

If you manage advertising budgets on behalf of clients, how you handle the money matters for tax and VAT:

• Client pays directly — simplest. The ad spend does not flow through your accounts.
• You pay and recharge — the spend appears in your income and expenses, potentially pushing you above the VAT threshold. Structure carefully.

IR35

If you work primarily for one client, at their offices, under their direction, IR35 may apply. Maintain genuine independence — multiple clients, your own tools, control over how you deliver work.

Digital Services

If you provide digital marketing services to overseas clients, the place of supply rules for VAT can be complex. Services to business customers outside the UK are generally outside UK VAT scope.

Building Your Consultancy

• Your network — former colleagues and employers are your best initial clients
• LinkedIn — essential for B2B marketing consultants
• Content marketing — demonstrate your expertise through your own marketing
• Referral partnerships — web developers, PR agencies, design studios
• Industry events — CIM events, marketing conferences

Bookkeeping Tips

• Separate business and personal finances
• Track retainer vs project income
• Keep client ad spend separate from your fees
• Invoice promptly
• Set aside 25–30% of profits for tax

Accounted connects to your bank and manages categorisation with AI. Designed for UK professionals.

Key Deadlines

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

Getting Started

Marketing consultancy is one of the most accessible professional services businesses to start. Your expertise is your product, your network is your pipeline.

Ready to market your finances as well as you market your clients? Sign up for Accounted and let Penny manage the bookkeeping.