Tax Guide for Self-Employed Actors & Entertainers

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As a former Chartered Accountant, I understand how confusing business registration and taxes can be, especially when you're self-employed. That's why I created this guide specifically for actors and entertainers who are working for themselves.

In this guide, I’ll cover everything from business registration to VAT, tax deductions, and returns, as well as provide additional resources to help you expand your knowledge and register as a self-employed actor or entertainer.

This guide focuses solely on self-employment taxes. If you operate through a Limited Company, you will be subject to other taxes, such as corporation tax and dividend tax.

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How to Register as a Self-Employed Actor

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Registering as self-employed with HMRC is the fastest and easiest way to work for yourself. You must do this once your income (not profit) exceeds £1,000 during a tax year (6th April to 5th April). Make sure you're registered by 5th October following the end of the tax year in which your income surpassed the £1,000 threshold.

Even if your profits are minimal, once your income crosses the £1,000 mark, you are legally required to register with HMRC and file a tax return. Though it may seem burdensome, filing a tax return allows you to record all expenses and potentially create a tax loss, which could save you money on future earnings.

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Other Business Structures

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While this guide assumes you're self-employed, there are other business structures to consider, such as:

• Limited Company

• Partnerships

These options may offer tax savings and provide protection from creditors. However, they also come with additional reporting requirements, which may require the services of an accountant.

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Do Child Actors Need to Register as Self-Employed?

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Children are required to pay taxes just like adults. If your child is earning as an actor, you may need to register them with HMRC and pay taxes depending on their income.

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How to Calculate Your Tax

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Your tax and National Insurance contributions depend on your earnings after deducting expenses, allowances, and reliefs.

• Income Tax: Charged at 20% on income over £12,500, and 40% on income over £50,000.

• Class 2 National Insurance: Paid as a fixed weekly amount when earnings exceed £6,475.

• Class 4 National Insurance: 9% on earnings over £9,501.

When you submit your tax return online, HMRC will automatically calculate how much tax you owe based on the information you provide.

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Tax Deductions for Self-Employed Actors and Entertainers

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Reducing your tax bill is as simple as claiming allowable business expenses. Here are some common tax-deductible expenses:

• Agents and management fees

• Makeup and haircuts for specific events

• Costumes and clothing for specific performances, including cleaning costs

• Photo and video shoots for your portfolio, casting websites, or show-reels

• Research expenses, including attending performances and watching films relevant to your roles

• Cosmetic surgery (if essential for your career)

• Website design, development, and hosting

• Laptops, software, and subscriptions

• Training and courses

• Use of your home as an office

• Insurance, travel, and mileage (unless you have a permanent contract)

• Legal fees, accounting fees, and bank charges for a business account

For items that serve both personal and business purposes, such as mobile phones, you can only claim the proportion used for business. For example, if you use your phone 60% for business and 40% for personal use, you can claim 60% of the phone bill as a business expense.

Certain expenses, such as fines, penalties, and personal clothing, are not tax-deductible.

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Tax Returns for Self-Employed Entertainers

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As a self-employed actor or entertainer, you must follow HMRC’s self-assessment rules. This means filing a tax return online each year by 31 January and paying taxes twice a year (by 31 January and 31 July).

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Keeping Tax Records

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Self-employed individuals are legally required to keep records of all income and expenses for six years. This is to ensure you have evidence to support the figures on your tax return if HMRC ever inquires.

To make this process easier:

• Open a separate business bank account to track all payments and help budget for taxes.

• Use a cloud-based storage system, such as Google Drive or Dropbox, to store receipts and paperwork securely.

• Set aside regular time for bookkeeping and financial checks.

 

VAT

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VAT (Value Added Tax) is applied to most goods and services. Businesses with a turnover of £85,000 or more must register for VAT. Once registered, a business must charge VAT to its customers and pay this to HMRC, after deducting any VAT paid to suppliers.

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Related Articles for Self-Employed Actors & Entertainers

• Do I Have to Register My Side Hustle as a Business?

• Everything You Need to Know About Self-Employment Taxes

• How to Set Financial Goals (And Achieve Them)

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