PROFESSIONAL DESIGN FRAMEWORKS 3 BLOCK 2 - FINANCE IN DESIGN KATE JACKSON @00296501
K
J
CONTENTS Page 3 - Annual Income Forecast Page 4 - Personal Salary Forecast Page 5 - Business Start-Up Costs Page 6 - Project Quotation Page 7 - Invoice Template Page 8 - Calculation of Annual Surplus
K
J
ANNUAL INCOME FORECAST
tT ar Work ime
365 DAYS PER YEAR
103 D a ys
nal rso Pe Cr ea
tiv
e
Pr
Pe rso
tic
e
Mark
eting
BUSINESS DAYS BREAKDOWN
n
romotio
k+P Networ
on
ti tra
K
J
s t rojec P t s Pa
Client S
sin es
sD
ev
elo p
me
Ad
upport
nt
s
ni mi
+ Part Time W ork ays lD na
ac
Bu
Business Da 210 ys
52 D ay sP
PERSONAL SALARY FORECAST SEPT 2013 - ‘14 EXPENDITURE DESCRIPTION
MONTHLY
ANNUALLY
TOTAL PER YEAR
Currently live with mother - rent free
-
-
-
Council Tax
n/a
-
-
-
Water
n/a
-
-
-
Gas
n/a
-
-
-
Electricity
n/a
-
-
-
2013-14 car insurance for VW Polo
-
£750
£750
Car Tax
Annual car tax for VW Polo
-
£125
£125
Car Fuel
Estimated petrol costing per month
£45
-
£540
MOT + service
-
£150
£150
Phone
Mobile phone contract
£20
Food
Food expenditure including eating out, protein powder for gym etc.
£60
-
£720
Clothing
Clothing including bags, shoes + accessories
£100
-
£1200
Toiletries
Facial, body + hair products
£50
-
£600
Hair
Hair cut + coloured every 2 months
£30
-
£360
Gym
Gym membership monthly contract
£19
-
£228
Pole fitness hobby £10 per lesson
£40
-
£480
Birthdays, Christmas + special occasions
-
£600
£600
-
£364
£1625
£5993
DESCRIPTION
MONTHLY
ANNUALLY
TOTAL PER YEAR
Part-time job
Lifeguard job - no tax, no NI (income for third year of University only as hours have been cut to allow more time for studying)
£116
-
£1392
Student Finance
Maintenance loan and grant - received every three months between September to April
£717
-
£5019
TOTAL INCOME
-
£833
-
£6411
-
-
-
£418
PERSONAL EXPENSE Rent
Car Insurance
Car Maintenance
Pole dancing Gifts TOTAL EXPENDITURE
£240
INCOME PERSONAL INCOME
TOTAL PROFIT TOTAL PROFIT
K
J
BUSINESS START-UP COSTS 2014 - ‘15
ANTICIPATED EXPENDITURE PREMISES
DESCRIPTION
TOTAL PER YEAR
Lease Premium
-
Rent
-
Rates
-
Legal Fees
-
Fitting Out
-
TOTAL PREMISES
-
-
FIXED ASSETS
DESCRIPTION
TOTAL PER YEAR
Apple iMac
£1,749
Printer
£300
Nespresso Machine
£200
TOTAL FIXED ASSETS
-
£2,249
SERVICES
DESCRIPTION
TOTAL PER YEAR
Telephone / Mobile (£36 per month)
£432
Broadband
£240
Website
£120
Subscriptions
£150
TOTAL SERVICES
-
£942
OTHER
DESCRIPTION
TOTAL PER YEAR
Stationery
£200
Marketing
£1,000
Software (AutoCAD, Adobe, Artlantis)
£7,144
Public Liability Insurance
£150
-
£8,494
TOTAL
TOTAL COSTS
£11,685
LESS: AVAILABLE FUNDS
£2,500
ADDITIONAL FINANCE REQUIRED
£9,185
K
J
PROJECT QUOTATION SERVICE FOR: Salford Community Leisure Civic Centre, Chorley Road, Swinton, Salford, M27 5DA Project Title: Salford Museum and Art Gallery - Restaurant Design Date: 7/10/13 Invoice number: 1 Terms: 30 Days Description
Hours
Amount*
Initial Project Research including Visit to Museum
6
£ 150.00
Mood Board and Concept Generation
12
£ 300.00
Architectural Drawings
14
£ 350.00
3D Visuals
24
£ 600.00
Final Presentation & Presentation Materials
4
£ 100.00
4 Client Meetings (time and travel @ £50)
4
£ 200.00
64
£ 1700.00
Subtotal Grand Total
*Based on £25.00 per hour
£ 1700.00
Thank you for requesting a quote with KJ Designs, we really appreciate your interest and hope this meets your requirements. This quotation is valid for 30 days from the date shown above. If you have any questions regarding this quote, please do not hesitate to contact me.
Yours Sincerely, Kate Jackson
Kate Jackson Interior Design Marple Stockport SK6 6PX
K
J
07909442007 kjackson.jk@gmail.com www.katejackson.wix.com/kjdesigns
INVOICE SERVICE FOR: Company name Address Line 1 Address Line 2 Address Line 3 Postcode / Zip Project Title: Date: Invoice number: Terms: 30 Days Description
Hours
Rate
Amount
Subtotal
£
0.00
Tax 8.25%
£
0.00
Grand Total
£
0.00
Thank you for your business with KJ Designs. Looking forward to hearing again from you soon!
Yours Sincerely, Kate Jackson Kate Jackson Interior Design Marple Stockport SK6 6PX
K
J
07909442007 kjackson.jk@gmail.com www.katejackson.wix.com/kjdesigns
CALCULATION OF ANNUAL SURPLUS 2014 - ‘15
Based on the standard day rate for the ‘freelance design’ sector of a £200 daily charge to a client (£25 per hour x 8 hours per day), and there being 150 business working days per year. £200 x 150 = £30,000 Minus annual business expenses of £9,185 £30,000 - £9,185 = £20,815 profit Minus personal survival budget (PSB) of £5,993 £20,815 - £5,993 = £14,822 business surplus
ANNUAL STATUTORY DEDUCTIONS Tax
Personal Tax Allowance (PTA) states the first £9,440 of profits is income-tax-free. £20,815 profit (£14,822 business surplus and £5,993 PSB) minus PTA £20,815 - £9,440 = £11,375 taxable Annual income tax at 20% 20% of £11,375 = £2,275 total tax
National Insurance (NI) Class 2 NI contributions of £2.70 per week £2.70 x 52 (weeks per year) = £140 total C2 NI Class 4 NI contributions = 9% on annual profits between £7,755 and £41,450 £20,815 - £7,755 = £13,060 9% of £13,060 = £1,175.40 total C4 NI
Total Deductions Tax + C2 NI + C4 NI = Total Statutory Deduction £2,275 + £140 + £1,175.40 = £3,590.40
ANNUAL SURPLUS Business Surplus - Total Statutory Deductions = Annual Business Surplus £14,822 - £3,590.40 = £11,231.60 ANNUAL BUSINESS SURPLUS
K
J