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May 19, 2024 · As an actor who’s busy working on your next job and focusing on growing your career it can be hard to understand how to maximise your profits and minimise your tax burden. But, to reduce your taxable income it’s important that you understand what you can and can’t claim on your tax return.
- Cameron Sykes
When actors need to register as sole traders, how they calculate tax and how taking on additional work affects this. As a self-employed actor, whether you have an agent or not, you’re a freelancer. In most cases, for the purposes of HMRC, your legal status is ‘sole trader’. These terms might appear daunting at first, […]
A UK actors’ guide to tax: how much can you earn before paying tax, when do child actors start paying tax, what is tax-deductible, self-employment & more.
- Clothing
- Medical expenses
The general rule for clothing costs is set out in BIM37910 where the case of Mallalieu v Drummond [1983] 57TC330 is discussed. In Mallalieu, Lord Brightman explained that a self-employed person could not claim a deduction for the cost of ‘a wardrobe of everyday clothes’ even if they were used solely for work. There is an inevitable non-business purpose in the acquisition of such clothing: the provision of warmth and decency.
The Mallalieu decision does not mean that the cost of clothing is always disallowed. BIM37910 gives examples of the costs of a ‘uniform’ or protective clothing. The cost of clothing acquired for a role in a film, stage or TV performance is also allowable. The clothing is not part of ‘an everyday wardrobe’; it is ‘costume’ used in a performance.
Health-related surgical, hospital and medical expenses are inadmissible deductions in computing profits (see Norman v Golder [1944] 26TC293). This will be so even if a reason for paying for private health treatment is to enable the performer to arrange the timing of treatment to best suit their business commitments.
Only in exceptional circumstances will non-health related operations to change personal appearance by reversing or masking the advancing of the years (for example, face-lifts) not have a private purpose. You should invite the Tribunal to infer the existence of a private motive unless there is compelling evidence to the contrary.
Sep 29, 2020 · HMRC recently published an updated version of guidance in its employment status manual for actors and other performers (ESM4121 –ESM4126). This follows months of discussions with key industry stakeholders, including Equity, the trade union for actors, performers, singers, models, directors, designers, choreographers, stage managers, and other ...
ACTORS • A GUIDE TO TAX 2019/20 4 THE BASICS THERE ARE TWO TYPES OF INCOME RELEVANT TO ACTORS: • Earnings from employment – income from working for an employer e.g. a theatre. • Trading income – self-employed income i.e. from trades, professions and vocations. The scope for tax planning for actors with earnings from employment is much
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Keeping on top of your tax obligations is often time-consuming and the many different rules and regulations can make it seem tricky. This guide is intended to give you a handy overview of the key tax issues for actors, the main steps you need to take to keep your tax affairs in order and where we can help with expert advice.
