If you’re a self-employed actor or actress then you will probably already know what a pain filing your yearly tax return can be.
Knowing how much tax you should be paying, what expenses you can claim on - or even how to register as self-employed are all obstacles members of the acting profession will face.
Here is a common question we get asked by actors:
Q. I’ve just got my first paid role as a self-employed actor, what should I do to keep the Tax Man happy?
1. Register with HM Revenue and Customs (HMRC)
No matter how small you’re income registering with the HMRC is mandatory.
Contact your tax office or self-employment helpline to guide you through this:
0845 915 4515
2.RECORD YOUR EXPENSES!
Learning good book keeping skills while you’re starting out will save you A LOT of money.
Getting an accountant to do your book keeping may be the easy way out, but definitely not the cheap way! At an hourly rate, you will be looking at a hefty and unnecessary expense.
All of your transactions, invoices, receipts etc. must be kept for a minimum of 5 years and 9 months after the relevant return deadline.
3.Put money aside to pay tax
Saving money will make it a lot easier to pay your tax when it’s due.
If you do not have money to pay on time, you could be charged interest or need to take a loan to pay the bill.
4.Meet tax deadlines and pay your tax on time
If you are registered as self employed then you will be sent a tax return. Send this back before the set deadline or face an initial fine of £100.
This £100 fine is followed by a string of daily £10 fines. Basic math with tell you that it won’t take long for the debt to become a killer to the budget.
If you've left your tax return to the last minute be sure to contact us. We are a team of experienced, chartered accountants with a specialism in US expats and professionals in the creative arts. Your tax return couldn't be in safer hands!!