YF Accounting4 min read
MediaCityUK and Salford Quays have quietly become one of the busiest pockets of small business activity in Greater Manchester. Production companies, design studios, podcast makers, software startups and a small army of freelancers all work within a few minutes of the tram stop. The work is varied and the money can be good, but the tax side is rarely as simple. This guide walks through the accounting decisions that matter most if you run a business around the Quays, with the 2026/27 figures you actually need.
The Quays has its own kind of business
Most areas have a steady mix of trades, shops and offices. MediaCityUK leans a different way. A lot of the work here is project based, freelance or contract, with income that arrives in lumps rather than a smooth monthly figure. One month a producer might invoice three clients, the next month none. A design studio might take on a six month retainer, then nothing for a quarter. That pattern is completely normal for creative and digital work, but it makes tax planning more important, not less. Money set aside in a good month is what covers the tax bill when a quiet one lands.
Freelancers: when the £1,000 trading allowance stops being enough
If you have started taking on bits of freelance work alongside a job, the first figure to know is the trading allowance. You can earn up to £1,000 of trading income in a tax year without telling HMRC or filing a return. Cross that line and you need to register for Self Assessment and report the income properly.
Once you are over the allowance, the question becomes what you can deduct. Software subscriptions, a share of your home costs, kit, travel to shoots and client meetings can all reduce what you are taxed on, provided they are genuinely for the work. Our guide to allowable expenses for the self-employed in 2026/27 runs through what counts and what HMRC will not accept.
There is also a change worth flagging early. From 6 April 2026, Making Tax Digital for Income Tax applies to sole traders and landlords whose combined self-employment and property income is over £50,000. If that is you, quarterly digital updates to HMRC are now part of the routine, so it pays to get your bookkeeping onto software sooner rather than later. We covered the detail in our piece on Making Tax Digital for Income Tax.
Going limited: salary, dividends and corporation tax in 2026/27
As a freelance income grows, or when an agency takes on staff and clients of its own, a limited company often becomes the better home for it. A company pays corporation tax on its profits at 19% where profits are £50,000 or less, and at the main rate of 25% once profits reach £250,000. Between those two figures, marginal relief tapers the rate so it climbs gradually rather than jumping.
Most director owners then pay themselves with a mix of a modest salary and dividends. The personal allowance is £12,570, and the first £500 of dividends is covered by the dividend allowance. One thing to plan around for 2026/27 is that dividend tax rates rose from April 2026, with the ordinary rate moving to 10.75%, so the gap between salary and dividends is not quite what it was. Our breakdown of salary versus dividends in 2026/27 shows how the numbers fall for a typical director.
Contractors at MediaCity and IR35
MediaCityUK is full of contractors, from broadcast engineers and editors to developers working through their own limited companies. If that is how you operate, IR35 is the rule that decides whether a contract is genuinely self-employed work or looks more like employment. Get it wrong and the tax difference is significant. Inside on one contract and outside on the next is common in this kind of work, so each engagement needs looking at on its own. Our explainer on IR35 and who it affects is a good starting point, and a contractor accountant can review your contracts and working practices so you are not guessing.
VAT: the £90,000 line agencies hit fast
Growing agencies tend to reach the VAT question quickly, because a couple of decent retainers can push turnover up in a hurry. You must register for VAT once your taxable turnover over any rolling twelve months goes above £90,000, and the deregistration threshold sits a little lower at £88,000. Registering changes your pricing and your admin, so it is far better to see it coming than to trip over it. We set out the steps to take in our guide to approaching the £90,000 VAT threshold.
Why a local accountant helps
None of this needs to take over your week. The point of getting an accountant involved is to take the deadlines, the filing and the second guessing off your plate, so you can focus on the work that actually pays. We are based in Whitefield, a short hop from the Quays, and we work with businesses right across the area as their accountant in Salford. Everything runs on fixed fees agreed up front, the service is fully digital, and there is always a real person to call.
If you run a freelance business, agency or startup around MediaCityUK or Salford Quays and you want a clearer picture of your tax position for 2026/27, book a free Zoom call and we will talk it through. No jargon, no obligation, just straight answers about where you stand.
Founder of YF Accounting — a fixed-fee, fully digital accountancy practice in Manchester serving SMEs, sole traders and landlords across the UK. One point of contact, unlimited support, no surprise bills.
Related reading
Allowable Expenses for Limited Companies: What You Can Claim in 2026/27
Do I Need to File a Tax Return? A 2025/26 Guide for the UK
Allowable Expenses for the Self-Employed: What You Can Claim in 2026/27This article is part of our Starting a Business guide. See the full topic for related reads.