Kit claims, deposits, VAT and Making Tax Digital for photographers in Brighton & Hove
Brighton has a busy community of wedding, portrait, commercial and event photographers. Most are sole traders, and most have the same questions: how to treat kit, what to do with deposits, whether VAT applies and when Making Tax Digital starts.
Spending on kit that you also use personally needs a business-use split. HMRC is more likely to question a mixed-use phone or laptop claimed at 100% than a professional lens.
Wedding deposits are paid months ahead. For income tax on the cash basis, the money is taxable when you receive it, so a deposit taken in March for a wedding next summer is income in the year you banked it. A limited company working on the accruals basis carries the work not yet done as deferred income.
Below £90,000 of taxable turnover, VAT is not compulsory. If you register, deposits create a VAT tax point when they are paid. Consumer customers cannot reclaim VAT, so registering voluntarily increases your price to them unless you absorb it. Commercial clients usually reclaim it and do not mind.
At most profit levels below about £60,000, a limited company does not save tax if you take all the profit out as salary and dividends. The reasons to use one are limited liability, leaving profit in the company, employer pension contributions and sometimes credibility with corporate clients. Our sole trader vs limited company comparison and salary vs dividends guide show the numbers.
See also sole trader accountant Brighton and equipment and training claims.
Sources: GOV.UK: Annual Investment Allowance, GOV.UK: Simplified expenses for vehicles, GOV.UK: Income Tax rates.
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Usually yes. A sole trader on the cash basis deducts the cost of equipment when it is paid, and other businesses can claim the £1m Annual Investment Allowance. Cars are excluded. Keep the invoices, and claim only the business share of anything you also use personally.
For VAT, yes: a deposit creates a tax point when paid. For income tax, a sole trader on the cash basis counts it when received, so a deposit paid in 2026 for a 2027 wedding is 2026/27 income. Businesses on the accruals basis count it when the work is done.
It can. The threshold is tested on gross income before expenses, so turnover of £52,000 counts even with £38,000 of profit. HMRC tests income from two tax years earlier, and includes property income as well as self-employment.
When taxable turnover passes £90,000 in any rolling 12 months, or you expect it to within the next 30 days. Below that it is optional. Registering voluntarily lets you reclaim VAT on equipment but adds 20% to fees for customers who cannot reclaim it, which matters for wedding and portrait clients.