If you make a payment to a non-resident promoter through a promoter, agent or merchandiser approved for the middleman scheme, you can make it without deducing Withholding Tax.
To make a tax-free payment the payee’s must be included in the HMRC’s ‘Non-Resident Entertainers: Approved promoters, agents and merchandisers in the middleman scheme’ document.
When you pay someone who does not live in the UK for making an appearance or performing in the UK and the total payment is more than the personal tax allowance you can deduct the tax from the payment. You must still make this deduction if the payment is made through a third party.
This act is called Withholding Tax.
If you think a payment to a performer your making will qualify for Withholding Tax, contact the HMRC’s Foreign Entertainers Unit and register for Withholding Tax.
Appearances that qualify for withholding tax include, but are not limited to:
· Sports events
· Acting in theatre, TV etc
· Promotional Activities