Hiring a designer
What an interior designer costs in the UK: fee models, VAT at 20 and 5 per cent, and what the contract must say
BIID's fees survey found that 51 per cent of UK interior designers combine charging methods, 21 per cent quote a fixed fee, 18 per cent charge by the hour and 6 per cent take a percentage of project cost. This article puts pounds against each model using dated UK price guides, explains which parts of a renovation carry 20 per cent VAT and which qualify for 5 per cent under VAT Notice 708, and lists what BIID says a design contract must contain.
How do UK interior designers charge for their work?
UK interior designers charge by a combination of methods in 51 per cent of practices, by fixed fee in 21 per cent, by hourly rate in 18 per cent, by a percentage of total project cost in 6 per cent and by another method in 4 per cent, according to the BIID guide to pricing a project, which reports the institute's 2019 survey of interior designers.
The BIID survey also records the rates behind those models. The most senior designer in the practice charged up to 75 pounds an hour at 59 per cent of respondents and 76 to 150 pounds an hour at 41 per cent. Among the small group charging a percentage of project cost, 53 per cent charged 6 to 10 per cent, 13 per cent charged 11 to 15 per cent and 33 per cent charged over 16 per cent. A daily rate is described as an alternative to the hourly rate with similar advantages. BIID also found that 80 per cent of respondents did not list fees on their websites, 10 per cent did and 11 per cent did so for some services.
The BIID client guide lists six ways designers charge: an hourly rate for the designer and staff, a fixed sum for the whole project, a percentage of the cost of the completed works, a design fee plus a handling charge for procuring furniture, fixtures and equipment, a design fee plus a percentage of the cost of goods supplied, and a variation on any of those.
| Fee model (BIID 2019 survey) | Share of practices | Figures reported |
|---|---|---|
| Combination of methods | 51 per cent | Most common among residential designers |
| Fixed fee for the project | 21 per cent | Calculated from estimated hours and overheads |
| Hourly rate | 18 per cent | Senior designer up to 75 pounds (59 per cent) or 76 to 150 pounds (41 per cent) |
| Percentage of project cost | 6 per cent | 6 to 10 per cent (53 per cent of users), 11 to 15 per cent (13 per cent), over 16 per cent (33 per cent) |
| Other method | 4 per cent | Includes square-footage and procurement-margin pricing |
What are typical interior designer rates in the UK in 2026?
Interior designers in the UK charge 50 to 150 pounds an hour as regional or freelance practitioners and 180 to 450 pounds an hour as experienced or London-based studios, with an initial consultation at 180 to 450 pounds and a full-service room redesign at 2,500 to 5,000 pounds, according to the House Designer 2026 cost guide, an online design company that also sells its own packages from 499 pounds a room.
The same guide puts fixed design packages at 500 to 3,000 pounds a room, states that luxury whole-home projects can exceed 10,000 pounds a room, reports a "designer for a day" model at 500 to 1,200 pounds, and gives 10 to 15 per cent as the typical surcharge on furniture, finishes and materials sourced on the client's behalf. On a full-service project the guide places the design fee at around 10 to 20 per cent of the total and the goods at 40 to 50 per cent of a furnishing-led budget.
A second online service, My Bespoke Room, publishes a wider hourly band of 25 to 150 pounds, a percentage band of 5 to 10 per cent and a fixed-fee ladder for its own remote packages: 195 pounds for a single-issue video consultation, 295 pounds for a styling package, and 495, 595 and 695 pounds for room designs of single, double and triple function. Both companies are sellers of the cheaper online model, so their comparisons favour fixed fees; the BIID survey is the only source in this section that surveyed practising designers rather than published a price list.
| Service (UK price guides, 2026) | House Designer figure | My Bespoke Room figure |
|---|---|---|
| Hourly rate, regional or freelance | 50 to 150 pounds | 25 to 150 pounds |
| Hourly rate, London or experienced studio | 180 to 450 pounds | not stated |
| Initial consultation | 180 to 450 pounds | free with packages |
| Fixed design package per room | 500 to 3,000 pounds | 195 to 695 pounds (online) |
| Full-service room redesign | 2,500 to 5,000 pounds | not stated |
| Percentage of project or procurement cost | 10 to 15 per cent on sourced goods | 5 to 10 per cent |
What must a contract with an interior designer contain?
A BIID member designer is required to hold professional indemnity insurance, to adhere to the BIID Code of Conduct and to have a written contract with the client, according to the BIID client guide, and the guide states that the agreed brief becomes the basis of that contractual agreement once it is defined.
The guide describes the usual contractual structure of a residential project: building works are generally done under a separate contract between the client and the contractor, while some designers offer a "design and build" or "turnkey" service and take responsibility for the whole project. The guide advises the client to disclose the budget, because a designer cannot make informed recommendations without it and redesign after an overspend involves additional fees. Where an hourly rate is quoted, the guide tells the client to agree the details of how it is applied, and it points clients to standard forms of appointment published by RIBA Publishing.
- The brief: room list, uses, budget and any planning or listed-building constraint, written down before fees are agreed.
- The fee model: which of the six BIID methods applies, at what rate, and whether procurement carries a separate handling charge or margin.
- The scope: whether the designer produces construction drawings, planning applications, quantity surveying or mechanical and electrical consultancy, which the BIID guide notes varies between studios.
- The build contract: whether the client contracts the builder directly or the designer offers a turnkey service.
- Insurance: the designer's professional indemnity policy, which BIID members must hold.
- Statutory roles: whether the designer will act as principal designer under CDM 2015, which needs a written agreement and is explained in the article on CDM 2015 duties for domestic clients.
How does VAT apply to interior design fees and renovation work?
Interior design fees are charged at the standard VAT rate of 20 per cent, because VAT Notice 708 lists the provision of professional services, such as those provided by architects, surveyors, consultants and supervisors, among the services that must be standard-rated even where the building work itself qualifies for the reduced rate.
The reduced rate of 5 per cent applies to the building work in two situations that Notice 708 sets out. Section 8 covers the renovation or alteration of qualifying residential premises that have not been lived in during the 2 years immediately before the work starts; section 7 covers conversions that change the number of single household dwellings in a building, or convert premises into a multiple occupancy dwelling. In both cases the reduced-rate services are the installation of building materials, works of repair, maintenance (including redecoration) and improvement to the fabric of the building, and works within the immediate site connected with water, power, heat, access, drainage, security and waste disposal.
Notice 708 lists the services that remain at 20 per cent on such a job: the installation of goods that are not building materials, such as carpets and fitted bedroom furniture, the erection and dismantling of scaffolding, the hire of goods, landscaping, and professional services. Paragraph 8.3 adds the evidence rules: a letter from a local authority Empty Property Officer certifying that the property has not been lived in for 2 years is sufficient on its own, occasional use as a second home in the 2 years disqualifies the property, and if the premises were empty for the 2 years before work starts the whole job stays reduced-rated even if the occupier moves in during the work.
| Item on a renovation of a dwelling empty for 2 years (VAT Notice 708) | VAT rate |
|---|---|
| Interior designer, architect or surveyor fees | 20 per cent |
| Repair, redecoration and improvement to the fabric | 5 per cent |
| Installation of double glazing or an extension | 5 per cent |
| Fitted kitchen furniture, supplied and installed | 5 per cent |
| Carpets, carpet tiles and underlay, supplied and installed | 20 per cent |
| Fitted bedroom furniture and bathroom cabinets, supplied and installed | 20 per cent |
| Scaffolding hire and erection | 20 per cent |
| Same works on a dwelling lived in within the last 2 years | 20 per cent |
Which items count as building materials for the 5 per cent rate?
An article counts as a building material under paragraph 13.2 of VAT Notice 708 only if it is incorporated in the building, is ordinarily incorporated by builders in that type of building, is not finished or prefabricated furniture other than kitchen furniture, is not an electrical or gas appliance other than the listed exceptions, and is not carpet or carpeting material.
Kitchen furniture is the main exception in an interior designer's specification: finished or prefabricated kitchen furniture and the materials to build fitted kitchen furniture are building materials when ordinarily incorporated. All other fitted furniture is not, and the notice names wardrobes (other than basic wardrobes described at paragraph 13.5.2), elaborate vanity units and wall units such as bathroom cabinets. Among appliances, only those designed to heat space or water, to provide ventilation, air cooling, air purification or dust extraction, and burglar alarms, fire alarms, fire safety equipment and lifts qualify; hobs and ovens do not, while solid fuel or oil-fired cookers do. Flooring splits the same way: linoleum, ceramic tiles, parquet and wooden floor systems are building materials, carpets are not.
Which energy-saving installations are zero-rated?
The installation of specified energy-saving materials in residential accommodation is zero-rated from 1 May 2023 to 31 March 2027 and reverts to the 5 per cent reduced rate from 1 April 2027, according to VAT Notice 708/6.
The zero rate covers the installation service and the materials supplied by the installer; a retailer selling the same materials without installing them charges 20 per cent. The list in section 2.7 of the notice includes controls for central heating and hot water systems, draught stripping, insulation, solar panels, wind turbines, water turbines, ground source, air source and water source heat pumps, micro combined heat and power units, wood-fuelled boilers, batteries for storing energy converted from electricity and smart diverters, and from 1 February 2024 the groundworks needed to install ground and water source heat pumps. Draught stripping is defined as strips fixed around windows, interior and exterior doors and loft hatches.
What should a client budget for design fees on a renovation?
A client can estimate the design fee on a renovation by applying the BIID survey's most common percentage band, 6 to 10 per cent, to the project cost and adding 20 per cent VAT, which on an 80,000 pound project gives a design fee of 4,800 to 8,000 pounds before VAT and 5,760 to 9,600 pounds after it; the figures are arithmetic on the BIID band and the standard rate, not a quotation.
The same arithmetic on the House Designer full-service range of 10 to 20 per cent gives 8,000 to 16,000 pounds before VAT on the same project, which is why the BIID guide advises agreeing the method before the brief is developed. Two further costs sit outside the design fee. Procurement handling, at the 10 to 15 per cent that House Designer reports on sourced goods, is charged on the furniture and finishes rather than the works. Statutory fees for Building Regulations applications and, on a listed house, the listed building consent process, are described in the articles on Building Regulations for interior work and listed building consent for interior alterations; the Planning Portal states that a listed building consent application itself carries no fee.
For the designer's side of the same numbers, the employed and freelance pay that those fees support is set out in the article on interior designer salary and day rates in the UK.
Questions readers ask about interior designer fees and vat in the uk
How much does an interior designer cost per hour in the UK?
The BIID 2019 survey found the most senior designer in a practice charged up to 75 pounds an hour at 59 per cent of practices and 76 to 150 pounds at 41 per cent. The House Designer 2026 guide reports 50 to 150 pounds an hour for regional and freelance designers and 180 to 450 pounds for experienced or London studios.
What percentage of project cost do interior designers charge?
Only 6 per cent of respondents to the BIID 2019 survey charged a percentage of total project cost. Of those, 53 per cent charged 6 to 10 per cent, 13 per cent charged 11 to 15 per cent and 33 per cent charged over 16 per cent.
Is VAT charged on interior design fees?
Yes. VAT Notice 708 lists professional services such as those of architects, surveyors, consultants and supervisors as standard-rated even when the building work itself qualifies for the reduced rate, and the standard rate has been 20 per cent since 4 January 2011.
When is renovation work charged at 5 per cent VAT?
VAT Notice 708 section 8 allows 5 per cent on renovating or altering a dwelling that has not been lived in during the 2 years before the work starts, and section 7 allows 5 per cent on conversions that change the number of dwellings in a building. Carpets, fitted bedroom furniture, scaffolding and professional fees stay at 20 per cent.
Are carpets and fitted wardrobes covered by the 5 per cent rate?
No. VAT Notice 708 paragraph 13.7 states that carpets, carpet tiles and underlay are not building materials, and paragraph 13.5 excludes finished or fitted furniture other than kitchen furniture, so those items and their installation are standard-rated at 20 per cent.