If you’ve ever wondered how much freelance web designers earn in the UK, you’re not alone. It’s a common question for aspiring freelancers and anyone considering taking the leap into self-employment. As someone who’s been freelancing since 2010, I’m happy to share insights into my journey, earnings, and expenses to help you understand the financial realities of running a freelance web design business so pull up a chair, grab a coffee and let’s get into it!
How Much Do I Turnover?
My turnover for the financial year ending March 2024 was just under £100,000. Over the years, my annual earnings have typically ranged from around £85,000 to £125,000.
How Much Do I Pay Myself?
I pay myself a salary of £1,200 per month, which totals £14,400 annually. This amount is supplemented by dividend payments ranging from £30,000 to £40,000 per year. Combined, my total income usually falls somewhere between £45,000 and £55,000 annually. Compared to a salaried role, this is equivalent to a gross salary of approximately £60,000-£70,000 due to the tax efficiencies of taking dividends alongside a modest salary.
How I Compare to Other Freelance Web Designers?
Freelancers’ incomes vary. New freelancers in the UK might earn between £20,000 and £40,000 annually. Experienced designers with established portfolios often surpass £100,000 per year. My reliance on organic SEO and referrals has helped me reduce costs while maintaining consistent client work. This approach, combined with delivering high-quality work, has allowed me to charge higher rates compared to some peers.
Breaking Down the Expenses
My expenses for the financial year ending March 2024 were as follows:
- Software and IT consumables cost £7,079.90 annually or £589.99 per month. These include design tools, plugins, and hosting services.
- Renting an office costs £2,805 annually or £233.75 monthly. It provides a dedicated space for work.
- Motor vehicle expenses total £6,000 annually, averaging £500 per month. This covers client meetings and other business-related travel.
- Accountants charge £4,200 annually or £350 monthly. They manage taxes, payroll, and financial planning.
- Miscellaneous costs, including insurance, bank fees, and subscriptions, amount to £5,344 annually or £445.34 monthly.
Advertising Costs
I spend no money on advertising my business. zero. zilch. nada. My business is purely driven by organic SEO and client referrals which I realise is an incredible position to be in.
Annual and Monthly Breakdown of Costs
The summary of my expenses for the year is:
| Expense Category | Annual Cost (£) | Monthly Average (£) |
|---|---|---|
| Software & IT | 7,079 | 589.99 |
| Office Rent | 2,805 | 233.75 |
| Motor Vehicle | 6,000 | 500 |
| Accountants | 4,200 | 350 |
| Miscellaneous | 5,344 | 445.34 |
| Total | 25,428 | 2,119.08 |
Profit and Dividends
After covering these expenses, the remaining profit typically ranges from £40,000 to £60,000 after taxation. This profit is divided between dividends and investments.
Final Thoughts
Becoming a freelance web designer can be incredibly rewarding. While it comes with challenges, the freedom to set your own schedule, work with clients you enjoy, and build a profitable business makes it all worthwhile. If you’re considering freelancing or have any questions it, fire an email over to chris@thelonelypixel.co.uk. I’d be happy to offer advice and help you get started!