This post is one for my entertainer friends – in case you are doing your tax return and want to know more about expenses that are tax deductible to run your business. e.g. Did you know teeth whitening is an acceptable tax-deductible expense? I must look in to hair transplants…
You could also come for a magic lesson from me and that’s tax deductible!
This info is from the Entertainment Industry Accountants/Book-Keepers Franklin James
Check the list to see how many of these things you are claiming for! It could be a lot less than you imagined. An industry entertainment accountant and book-keeper will have the knowledge of the items that you should be claiming for, that’s one of the benefits of using one. But if you DIY, make sure you check this list to ensure you are claiming all your allowable expenses.
Most singers, entertainers and performers are self-employed, which means that you have to complete and file a self-assessment at the end of the government HMRC financial year, which is the 5th April. So, this means you are responsible for paying your own TAX and National Insurance.
Tax-deductible Expenses Include
There are many expenses that magicians, singers, entertainers and performers can legally deduct from what they earn and we thought we would share with you what they include:
• Backing tracks / Recordings / Music Scores & Scripts
• Vocal lessons or skilled coaching
• Rehearsal room rental
• All costumes / stage clothes / Shoes and even cleaning!
• Make-up / Hair Dye / Hair spray / Wigs
• Subscriptions (example Equity or Musicians Union)
• Audition entry or competition fees / paid showcases like Showcase productions for example
• Publicity – video creation / photo shoots / Recording studio
• Any repairs that you might have had on equipment
• Equipment, Pa systems, Leads, plugs, power breakers etc
• Visual/audio equipment (cameras and video cameras), computers, Ipads, Printers etc
• Any paid advertising listings – The Stage Newspaper for example or the UK Cabaret Magazine
• Your website and website fees as long as they relate to your business.
• Mobile Phone – this needs to be split down though. You need to decide how much you use for personal and how much you use for business.
• Transport to and from bookings / meetings – Flights / boat & train fare when relative to your work.
• Accommodation required – Hotel or B&B for example.
• You can’t claim for “Entertaining” so things like going for a meal – but you can claim for things like food and beverage whilst out working, as long as it is over 10 miles from your place of work or home. (HMRC Guideline)
• Book-keeping & accountancy fees
• Laundry & cleaning for stage wear
• Car rental, car insurance, MOT, service & repairs and petrol or you can claim up to 10,000 miles at 45p and over 10,000 is 25p per mile
• Health & Gym Memberships!! Yes, even Teeth whitening can be included – because as a performer it is important to keep healthy and look your best on stage.
• If you operate your business from home you can claim an allowance for doing so. You can either claim it on a flat rate or an actual running cost method of working from home.
Most importantly, make sure that you keep records of all your invoices, bank statements and receipts. If you don’t have the receipt then it is very hard to claim. If you need advice on what you can or can’t claim, or if you would like a qualified book-keeper or accountant to do this for you and save you the time, hassle and even money, contact Franklin James Show Business.