What Can an Actor Claim on Tax in the UK
Understanding Taxable Income for Actors
As an actor who’s busy working on your next job and focusing on growing your career it can be hard to understand how to maximise your profits and minimise your tax burden.
But, to reduce your taxable income it’s important that you understand what you can and can’t claim on your tax return.
As accountants for actors that are new to the industry and even to those working in it for decades, we’ve got a wealth of experience in helping people like you stay on the right side of HMRC
First: What you need to know about income and tax thresholds
Actors can earn income from a variety of sources, including:
Employment income from a production company or theatre
Self-employed income from freelance work
Royalties earned from past performances
The threshold for the 2023/24 tax year is £12,570. What this means is that if your taxable income is below this threshold, you will not have to pay any income tax whatsoever. However, if your taxable income is above this threshold, you will be required to pay income tax on the amount earned above £12,570.
If you’re self-employed, you will need to complete a self-assessment tax return each year to report your income and expenses. You will also need to pay National Insurance contributions on your self-employed income.
Actors should be aware that Class 4 National Insurance contributions may apply, depending on profits. In addition, higher earners will move into the 40% or 45% tax brackets (£50,270 and £125,140 thresholds in 2025/26).
What are allowable expenses?
In short, allowable expenses are the expenses that can be claimed on your tax return to reduce your taxable income. As a good rule to follow, expenses are allowable only if they are incurred wholly and exclusively for the purposes of your work. Examples of allowable expenses for actors include:
Accommodation expenses for out-of-town work
Travel expenses to auditions, rehearsals, and performances
Professional subscriptions and union fees
Costume and wardrobe expenses
Agent and management fees
Training and coaching expenses
Marketing and publicity expenses
Hair, make-up and specialist stage cosmetics (when required for performances or auditions)
Props and set items purchased specifically for productions
Equity membership and Spotlight fees (professional trade subscriptions commonly claimed by actors)
Make sure to keep accurate records of your expenses throughout the tax year. WIthout these records you won’t be able to submit the costs on your tax return! This is very important.
HMRC requires that records be kept for at least 5 years after the 31 January filing deadline. Digital copies of receipts are acceptable, and this is often the simplest way for actors managing multiple jobs and expenses.
Claimable Expenses for Actors
We mentioned a few examples of allowable expenses above, but let’s dive into some of these in a bit more detail:
Travel and Subsistence
If you need to travel for work-related purposes, you can claim the cost of your travel expenses. This includes the cost of taxis, public transport, and even mileage if you use your own car. You can also claim for subsistence expenses such as meals and accommodation if you’re required to stay away from home for one night or work for work purposes such as filming on location.
HMRC allows actors to claim mileage at the standard rates (45p per mile for the first 10,000 miles, 25p thereafter). However, commuting between home and a permanent workplace is not allowable. Subsistence is limited to meals and non-alcoholic drinks purchased when travelling for business, not everyday lunches.
Clothing and Costume Expenses
Actors can claim for clothing expenses that are used exclusively for their acting roles. This includes the cost of buying and maintaining costumes, as well as any necessary alterations. However, you cannot claim for everyday clothing that you wear outside of your acting roles so make sure that what you’re claiming is exclusively for work.
Specialist items such as wigs, stage make-up, and protective clothing (if required on set) are also allowable. HMRC has disallowed deductions where clothing could be considered dual-purpose (e.g. suits or everyday wear), so claims should be clearly linked to performance use.
Training and Professional Development
If you purchase and attend any training courses or workshops that are directly related to your acting career then you can claim the cost of these as a tax-deductible expense. This includes any classes or courses that help you to improve your skills or knowledge as an actor.
Examples include acting classes, dialect coaching, voice training, or movement workshops. Training must update or enhance existing skills within your trade; courses for a completely new profession would not be allowable.
Marketing and Self-promotion
Actors can claim for marketing expenditure such as headshots, showreels, and website hosting fees. You can also claim for the cost of attending networking events such as industry conferences and workshops.
Other common expenses include printing costs for CVs, subscriptions to casting websites (e.g. Spotlight), and the cost of maintaining a professional social media presence if used for career promotion. Advertising fees for industry directories or trade publications may also qualify.
Specific Deductions for Performing Artists
As a performing artist, aside from the expensable items outlined above, you’re also entitled to claim tax deductions for certain costs that are tied intrinsically to you performing your job. For example:
Agent and Management Fees
If you’re represented by an agent or a manager, you can claim the fees paid to them as a tax deduction. This includes any booking fees, commissions, and other charges that you may incur in the course of your work. However, you cannot claim expenses that are reimbursed by your agent or manager so be careful to ensure that what you claim is only what you have been charged.
Agent fees are one of the most common allowable expenses for actors and typically range from 10–20% of earnings. These are deductible provided they are directly linked to your acting work. Make sure you keep copies of all agency invoices and contracts as HMRC may request evidence.
Equipment and Technology
As an actor, director, sound technician or performing artist, you may need to use certain equipment and technology to carry out your work. This may be a laptop, ipad or piece of software that you use for work purposes.. It’s important to note here that if you use the equipment for personal applications as well then you can only claim a portion of the cost as a deduction on your tax return.
Equipment that is expected to last several years (such as laptops, cameras, or microphones) is normally claimed as capital allowances rather than day-to-day expenses. Consumables (like batteries, memory cards, or software subscriptions) can usually be expensed immediately.
Home Office and Working from Home
If you work from home then you can claim certain expenses as a tax deduction. This can be the cost of electricity, household utilities, heating or other amenities that are essential for you to carry out your work at home. This can also include repairs and maintenance costs that are incurred for your home office, as well as a portion of your rent or mortgage interest.
Actors who work from home can use either the HMRC simplified expenses flat rate (£6 per week, £26 per month) or calculate a reasonable percentage of actual household bills based on business use. Remember that mortgage capital repayments are not allowable, but mortgage interest can be apportioned. Keeping detailed records of your working hours and space used will support your claim.
If you have a personal service company, also known as a limited company. It is typically advised to stick with the HMRC simplified rate of £6 per week use of home calculation, due to potential other tax impacts.
Navigating HMRC Regulations
When it comes to claiming tax deductions as an actor in the UK, one of the most important things that you can do is understand the regulations set out by HMRC. Here are some key things to keep in mind:
VAT and National Insurance
As a self-employed actor, you will need to register for VAT if your annual turnover exceeds the threshold set by HMRC which is £90,000 as of the 1st April 2024. Additionally, you will also need to pay National Insurance contributions on your earnings as an actor. What this means, importantly, is that you should forecast your earnings and outline the expected tax to be paid to HMRC as well as any VAT & National Insurance payments to be made.
Actors sometimes voluntarily register for VAT before reaching the threshold, particularly if they work with VAT-registered production companies, as this allows them to reclaim VAT on professional expenses. Keep in mind Class 4 National Insurance applies to self-employed actors, with Class 1 applying if you are also on PAYE contracts.
Record Keeping and Receipts
We’ve mentioned above the importance of keeping receipts and records of your costs. This isn’t just because it shows good organisational skills (although it does!); it’s because should HMRC ever audit your income & expenditure vs. what you have outlined on your tax return, you’ll need to show evidence of the expenses that you’ve claimed.
HMRC requires actors (and all self-employed individuals) to keep records for at least 5 years after the 31 January deadline of the relevant tax year. Digital records are acceptable, and apps or accounting software can simplify this process. Under Making Tax Digital (MTD), quarterly updates will become mandatory for most self-employed individuals from April 2026.
Filing Tax Returns
As a self-employed actor, each year you’ll need to file a tax return with HMRC. Within this tax return you’ll need to include accurate figures for both your income and expenses for the tax year, as well as any deductions that you’re claiming for. It’s vital that submissions are filed on time (by the 31st January) and payments are made promptly to avoid facing any penalties which can cost you more!
Payments on account may also be due in January and July if your tax liability exceeds £1,000. Many actors overlook this and face cash flow problems and so planning ahead is crucial.
Navigating the world of finances and accounts can be difficult, especially when you’re working hard to grow your career as an actor. That’s why Blue Skies has built decades of experience working with actors, like yourself, to take care of their tax return, bookkeeping, tax payments and more - making sure that you stay on the right side of HMRC while you dedicate your time to your craft.
For a no-obligation chat to find out how the Blue Skies team can help your career & financial wellbeing grow, contact us today on 01767 699996 or thecrew@blue-skies.tv.