Taxes can feel so overwhelming the first time you have to do them. However, they’re actually way more simple than you think. To show you just how simple they can be, I’m going to make the most simple and quick guide on how to do your taxes for UK actors. Don’t worry, it’s a piece of cake!

How To Know If You Need To Do Your Taxes

Most working freelance actors need to submit taxes. Here’s how to tell if you do:

• Have you worked as an actor this year? Acting work is generally not taxed and done as a self-employed freelancer. So if you have worked as an actor under contract, you may need to register as self-employed and submit a self-employed tax return.
• Have you earned over £1,000? If so, you will need to submit a tax return. This is taxable income, not net profit – so if you have been payed £1,000 or more, you will need to declare it even if your expenses are higher.

Set Up A Spreadsheet

The first thing you need to do for your taxes is to set up a spreadsheet for record keeping. You can do this in Excel, Google Sheets, or even on an old-fashioned piece of paper. Just make sure to keep it safe. Some accounting software can also help with this bookkeeping.

On the spreadsheet, you will need to:

• Track your income. Keep a note of anything you earn, including royalties. Note the date, what the job was, and how much you earned. Consider setting up a separate business bank account to make this easier.
• Track your outgoings. This is anything you spend on your acting work. These are your allowable expenses and tax deductible expenses. They can include things like headshots, showreels, training, Showreel membership, travel expenses, accommodation expenses, costume expenses, professional fees like agent fees and union fees, job expenses, self-promotion costs and more. Note the date, what the purchase was, and how much you spent. If you have an online receipt or any proof of purchase, it can be a good idea to link to this.
• Track your totals. At the end of the tax year, total up your income, your allowable deductions and your overall net profit.

Keep Your Receipts

Just in case HMRC wants to double-check your tax return, you need to keep your receipts as proof of your HMRC expenses. So anything you purchase that is directly to do with your acting work, you must keep the receipt for. To do this, you can:

• Keep all your physical receipts in a tin.
• Take a photo of all your receipts and keep them in one file for that year.
• Save links/photos of all online receipts in the same file.

As states before, you can also link these in your spreadsheet if you want to be super organised.

Set A Date To Do Your Return

The financial year or tax year starts and ends in April. This means the tax return you submit in 2024 will cover your business finances from April 2023 to April 2024.

IF YOU HAVE NEVER SUBMITTED A TAX RETURN BEFORE, YOU NEED TO LET HMRC KNOW BY 5TH OCTOBER.

You can do this by following this link.

The filing deadlines to submit the actual information for your tax return are:

• For online returns, the deadline is 31st January.
• For paper returns, the deadline is 31st October.

Make sure to set a date that works for you. If you’ve got another job on the horizon and don’t want to pay your return until the money’s come in from that, you may want to leave it a little later. Otherwise, if you’ve got the money to pay your return straight away, it’s best to do it as early as possible. I would recommend doing it before the end of December, at the very latest, just for safety’s sake. You never know what you might need to sort out unexpectedly.

What If I Have Another Job?

Many actors also work a job where you’re employed too, such as waitressing or bar work. If this is the case, just ask for your employer to give you your P45 in April. Many companies will send this to you automatically. Make sure to keep it in a safe place for when you do your taxes.

There will be a separate section on the tax return form for you to enter your income tax and taxes from this job. So, you don’t submit your combined income for the year. There is one section for your freelance acting income, and another for the income you earn through your employment.

I’m Still Scared and Confused!

Don’t worry! It’s so normal to feel scared and confused when you’re doing your taxes.

First of all, know you’re not on your own.

A great solution can be to do your taxes with a walkthrough. For example, this Youtube video walks you through literally every single section of the tax form. This can really help to explain things as you go through it.

(Link to video)

If you really feel like you don’t want to do it yourself, and you have the money to spare, you can also find accountants or tax relief services who can do your tax return for you for as little as a few hundred pounds. This can be a great way to take the stress of doing a tax return.

Frequently Asked Questions

How do actors pay taxes in the UK?

Self-employed actors fill out a self assessment, either online or on paper, in order to declare everything they’ve earned through acting every year. This is how tax for actors works in the UK.

What can you claim back on tax as an actor?

There are so many things you can claim tax relief on as an actor. Some of these tax deductions UK include headshots, showreel, Spotlight membership, Equity membership (which is on the hmrc professional subscriptions list of approved subscriptions), research trips, travel to shows and auditions, digs and accommodation, classes, training expenses, and workshops, equipment such as cameras, microphones, audition clothes and editing software. You can claim professional fees and union fees which are tax deductible UK. There is tax relief for expenses of employment and professional subscriptions tax relief.

Do actors have to pay tax?

Yes. Due to actors being freelance workers who generally work under short term contracts, actors have to declare their yearly income in order to pay their tax. Tax relief for actors is available for many expenses. If your income is below the tax threshold you may not owe any tax, but you still need to file a return.

Now you can do your taxes like a pro!

As you can see, learning how to be an actor UK and do your taxes doesn’t have to be hard. It can be pretty straightforward. All you need to do is make sure you’re organised through the year and keep track of your business finances, and it will be a walk in the park. Make sure to use any and all resources at your disposal to take the stress off, and everything will be okay. You got this!

Thank you for reading how to do your taxes for UK actors.

If you want to learn more industry tips, check out my recent post on Why You Don’t Need To Stress Over Getting An Agent.

Break a leg out there. You’re gonna smash it.