Karl Hood

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Tax advice for actors & actresses

The following is generic guidance for actors and actresses about which expenses (or expenditure) should be allowable (or deductible) for UK income tax purposes. It is not an exhaustive list. Specific advice from a tax accountant should be sought and no reliance can or should be placed solely on the following information

• Clothing Expenses – Clothing costs incurred specifically for a TV, film or stage performance, i.e. costume should be tax deductible. This can include a suit for TV presenters or interviewers. This may include a business suit for corporate role-play work. It must solely be used for acting activities. If you are reimbursed for such expenses this must be included as income

If you need to buy a dress or outfit for a ‘premiere’ or other event to promote a film this should be deductible even if later on you wear the outfit for non-business events (so long as this was not the original intention of buying the outfit)

You cannot claim for clothes worn to auditions to make a good impression. Generally all other items of clothing will not be tax deductible

• Research Expenses – This covers a lot of items of expenditure. It can include the cost (and any associated travel costs) of going to the theatre, opera, ballet or any kind of stage performance (e.g. poetry readings), visiting the cinema and film costs such as DVD or on-demand film hire, online DVD subscriptions (e.g. Lovefilm) and cable movie channel subscriptions (e.g. Sky Movies)

It can include entry fees for museums, galleries, stately homes which are for research purposes (e.g. you might visit a castle if you researching a medieval role such as Richard III)

A deduction should be available for the purchase cost of playbooks, acting technique books, books used for research purposes (e.g. an Oscar Wilde biography if performing in one of his plays). Any subscriptions to The Stage or other trade magazines should be allowable for tax purposes

• Marketing Expenditure – Key marketing costs which should be tax deductible include the Spotlight annual fee and subscriptions to casting websites (e.g. Casting Call Pro, Constant Casting, Starnow). The cost of portfolio photographs should be tax deductible but usually the cost is spread over 2 to 3 years depending on how regularly you update your portfolio. A voiceover CD or showreel fee should be tax deductible and the cost is generally spread over 3 years. Entrance fees for attending networking events should be deductible, e.g. actors expo event or Spotlight events

The cost of make-up and a haircut incurred specifically for a photo shoot or a ‘film premiere’ or promotional event should be deductible

If you design a website to advertise yourself as an actor then any annual domain registration or ongoing maintenance or monthly subscription costs, e.g. to a webhosting company such as Namesco are tax deductible. Upfront design costs are not immediately tax deductible

• Travel Costs – Any travel costs that you incur for acting related activities should be deductible. This can include travel from home to venues for auditions, rehearsals, performances and trips incurred for research purposes such as theatre, cinema or museum visits (see research above). Costs may be train, tube or bus tickets (can use Oyster records from the tfl website) or a percentage of weekly or monthly travelcards if used partly for acting purposes. Taxi fares are also allowable. Overseas trips may incur air or boat fares (e.g. filming or touring overseas) but there are complex rules if any family accompany you or there is a holiday element to the trip

If you use a car, motorcycle or bicycle for acting related travel then there are two methods of claiming an expense. The simplest method is to claim a fixed mileage rate (40p per mile for a car, 26p for a motorbike and 24p for a bike if total travel is less than 10,000 miles). However this can reduce any deduction for the purchase price of the car (see below).
The alternative is to keep a record of all fuel costs and claim a percentage based on acting related mileage. Any parking or toll road fees incurred on acting related trips should be deductible

• Food & Drink Costs – If you have to stay overnight for acting purposes, e.g. on tour, filming on location or an audition time necessitating an overnight stay then reasonable food and drink costs should be allowable. Otherwise food and drink costs are generally not tax deductible

• Hotel Expenses – Actors often have to stay in hotels or bed & breakfast lodgings if they are on tour, filming on location or auditioning or promoting themselves a long way from home. In such cases the accommodation costs should be deductible. The rules are more complex if your family wish to accompany you on such trips or you extend the overnight stay for leisure or holiday purposes

• Health & Gym Costs – It may be necessary for an actor to incur specific cosmetic surgery costs solely for the purposes of his or her career as an actor or actress, e.g. you might be happy with your appearance but your agent advises you to have your teeth whitened or straightened as this is holding back your TV or film career. Such expenses may be deductible but the tax authorities are quite strict in this regard. If you normally wear glasses but for performances you have to purchase contact lenses as the character does not wear glasses then such expenses should be deductible. Gym membership costs should in general be deductible

• Agent & Booking Fees – Generally fees charged by agents are tax deductible. This will be the amount plus any VAT (value added tax) charged by the agent. Any booking fees should be tax deductible for actors. Booking fees charged when going to the theatre are also tax allowable

• Working From Home – Actors and actresses generally use part of their home for acting related activities, e.g. searching the internet or acting publications for castings and auditions, calling agents and casting directors, applying for auditions, researching roles, learning lines, character development and research, voice and movement exercises... and many more! This means that a percentage of all household bills should be tax deductible. This includes mortgage interest, rent, gas and electricity bills, council tax, water rates, buildings & contents insurance, repairs and maintenance of the property (but not redecorating), broadband or internet costs (usually part of a package)

• Office or Studio Costs – If an actor or actress hires an office or studio space exclusively for acting related activities then the rental costs and associated utility bills and business rates should be deductible. If he or she has purchased the property then the mortgage interest and associated costs of the property should be deductible in full

• Computer or Laptop Costs – If you purchase a laptop or computer you are likely to use it partly for acting related purposes, e.g. researching a role or character, searching for auditions and castings, promoting a show you are performing in, maintaining your acting website/spotlight profile, keeping up to date with what is going on in the industry, preparing your CV and cover letters. In this case it is possible to claim a deduction for a percentage of the purchase price of the laptop or computer. This also applies to any software, e.g. Microsoft Office or security software and hardware such as printers or flash-drives to back-up your documents. This also includes an i-pad or notebooks (i-phones – see below)

• Car, Motorcycle, Bicycle Costs – You might use a car or motorbike (or even a bike) for acting related journeys, e.g. travelling to auditions, rehearsals, performances, research trips such as gallery, museum, theatre or cinema visits (see research below) or visiting your agent. In this case you can claim a deduction for a percentage of the purchase price of the car or motorcycle or bicycle. A percentage of any associated costs such as repairs or servicing, MOT, insurance, vehicle tax, security locks or safety wear should also be allowable as a tax deduction
If you hire a car exclusively for acting related travel then the cost should be deductible. If the car is used for non-acting related purposes then a percentage of the cost should be allowable

• Telephone Bills – If a mobile or landline phone is used wholly for acting related calls then the total cost of line rental and call costs should be deductible. If a phone is partly used for acting calls and non-acting calls then a percentage of the line rental cost and cost of individual acting calls is deductible. Generally an estimated percentage of a mobile all-inclusive package should be allowable. This also applies to the purchase price of the mobile phone, e.g. a PAYG phone or an i-phone

• Professional Subscriptions & Costs – Your membership to Equity should be a deductible expense for actors and actresses. If an actor or actress incurs fees for certain tax accountancy and legal services (e.g. advice on a contract) then a deduction should be given

• Training & Classes – The cost of attending regular weekly or monthly classes, e.g. dance, movement or physical theatre workshops should be deductible. If you have a singing or voice tutor then the costs should be allowable. The cost of attending full-time courses, e.g. a 6 week course in Shakespeare or film acting should be deductible. Drama school fees may be deductible depending on the course structure and duration but the rules are complex

• Bank Interest & Finance Costs – Generally it is advisable to have two bank accounts so that a deduction for overdraft interest on your acting account should be more straightforward. However it is generally possible to claim overdraft interest if you have only one bank account which you use for everything. Account charges on such an account should also be deductible

If you have borrowed money to buy a laptop, computer, car, motorcycle or bicycle which is partly used for acting purposes (see above) then a percentage of the interest paid on such loans should be deductible

If you use your home partly for acting purposes then a percentage of any mortgage interest should be deductible (see above). If you pay mortgage interest on a studio you have purchased which you use for rehearsing or other acting purposes then a claim should be allowable for such interest

If a career development loan is taken out to fund certain training costs or drama school (if such costs themselves are allowable - see above) then the interest on the loan should be deductible