Actors Tax Guide in 2020

Staying on top of your tax obligations often takes a long time and different rules and regulations can make it seem complicated. The purpose of this guide is to provide you with a practical overview of key tax matters for stakeholders, the main steps you need to take to keep your tax matters in order, and where we can help you with expert advice.

THERE ARE TWO TYPES OF PERTINENT INCOME FOR ACTORS:

• Employment income: income from working for an employer, p. a theater.

• Business income: income from own account, that is, from trades, professions, and vocations.

The scope of tax planning for actors with employment income is much more limited than for those with business income, who can generally claim a wide range of expenses and pay any taxes due once or twice a year through self-assessment, instead of deducting taxes at source by your employer. Naturally, HMRC is interested in classifying as many people as possible as employed rather than self-employed.

TAXES AND NATIONAL INSURANCE IF EMPLOYED

Your employer is responsible for deducting Income Tax and National Insurance from your wages through the Pay As You Earn (PAYE) system and paying it to HMRC on your behalf. You may still need to complete a tax return if you are a higher taxpayer, and any additional taxes due will be payable on January 31, 2021, for the year ending April 5, 2020.

As an employee, it is important to note that you can only claim the expenses against your income that are incurred from job duties.

TAXES AND NATIONAL INSURANCE IF YOU HAVE PERSONAL EMPLOYMENT

You are responsible for your taxes and national insurance. Even if you are paying Class 1 contributions as an employee, you may have to pay Class 2 and Class 4 contributions on your income, subject to levels of earnings.

NATIONAL INSURANCE

You will need to pay Class 2 National Insurance contributions through a self-assessment on January 31 following the end of that year. Class 2 fare is £ 3.00 per week. The small earnings exemption is automatically granted to those with low earnings. (The threshold is £ 6,365 as of April 6, 2019).

The Class 4 rate is 9% on its account earnings between £ 8,632 and £ 50,000 per year, with an additional 2% payable on all earnings over £ 50,000. It is assessed as part of the tax calculation and paid the same way at the same time.

EMPLOYEES

Employees are generally subject to income tax from employment received during the current tax year.

Details of these earnings are shown on Form P60 (if you are employed at the end of the fiscal year) or on Form P45 (if you leave employment during the year). Your employer may pay you for the expenses or provide you with taxable benefits, and these may be shown on a P11D form.

FREE-LANCERS

Self-employed actors pay income taxes in the current fiscal year, p. The year-end of June 30, 2019, is evaluable for the year ended April 5, 2020.

This actors tax guide has been prepared by HM fishers charged accountants. Please note that this information is provided for guidance only and does not mean giving professional advice.

About This Author

Hridoy Ahmed Joined: December 15th, 2019