Most people don’t like doing accounts and actors, singers, musicians, dancers and performers are no exception.
Making Tax Digital will mean they will need to be on top of their expenses in order to do quarterly returns from April 2018.
Here is quick summary of claimable expenses.
Section 352 Limited deduction for agency fees paid by entertainers
(1) A deduction is allowed from earnings from an employment as an entertainer for agency fees (and any value added tax on them) if the fees are calculated as a percentage of the whole or part of the earnings from the employment.
This is subject to the limit in subsection (2).
(2) Amounts may be deducted under this section in calculating the net taxable earnings from an employment in a tax year only to the extent that, in aggregate, they do not exceed 17.5% of the taxable earnings from the employment in the tax year.
(3) Subsections (4) and (5) apply for the purposes of this section.
(4) “Entertainer” means an actor, dancer, musician, singer or theatrical artist.
(5) “Agency fees”, in relation to an employment, means—
(a) fees paid under a contract between the employee and another person, to whom the fees are paid, who—
(i) agrees under the contract to act as an agent of the employee in connection with the employment, and
(ii) at the time the fees are paid is carrying on an employment agency with a view to profit, and
(b) fees paid under an arrangement under which a co-operative society or the members of such a society agree to act as the employee’s agent in connection with the employment.
(6) For the purposes of subsection (5)—
“co-operative society” does not include a society which carries on or intends to carry on business with the object of making profits mainly for the payment of interest, dividends or bonuses on money invested or deposited with or lent to the society or any other person, and
“employment agency” has the meaning given by section 13(2) of the Employment Agencies Act 1973 (c. 35).
Trade and Magazine Subscriptions
You can claim for:
- trade or professional journals
- trade body or professional organisation membership
Travel & Subsistence
The normal rules apply https://stevejbicknell.com/2017/03/27/what-are-the-rules-on-subsistance-and-travel/
Travel to auditions, rehearsals and performance related activities should all be claimable.
Car Mileage can also be claimed at 45p for the first 10,000 miles then 25p per mile
Clothing and Costume Cleaning
If the clothing is for a performance then it should be fine but if used for personal use it has duality of purpose and can’t be claimed.
Generally rehearsal clothes can’t be claimed.
If the clothing counts as for a performance then the cleaning costs can be claimed
Tickets to events, shows, movies and museums may be claimable if they are for research purposes.
Props and equipment, even Ipads and computers could also be business expenses.
Websites, marketing, photography can all be business expenses.
Working form Home can also be claimed https://stevejbicknell.com/2015/02/02/simplified-expenses-working-from-home/
Also Mobile phones, stationery, insurance, accountancy and many more