The Ultimate Tax Guide for Self-Employed Workers in the UK Film & TV Industry

This article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax rules and HMRC penalty policies can change and depend on individual circumstances, so please consult HMRC directly or a qualified tax adviser before making decisions about your specific situation.

If you’re working as a supporting artist in the UK film and TV industry, you’ll be classified as self-employed under UK employment law and will be responsible for paying your own taxes.

While this can be daunting, there are a number of useful resources available to help you understand your obligations and navigate the working world of film and TV.

Working with an agent (employment agency)

• Employment Agency Standards Inspectorate (EAS): The EAS ensures that employment agencies treat workers fairly. As supporting artists in the UK are classified as self-employed, they are introduced to hirers by employment agents, specifically casting agents. The EAS is a valuable resource that helps freelancers to understand the legal responsibilities of these agencies. They provide guidance on regulations and are available to assist if you have concerns about your casting agency.
• ACAS (Advisory, Conciliation and Arbitration Service): ACAS offers confidential, free advice on employment law and workplace issues. Whether you're facing contract disputes or need help understanding your rights, ACAS provides neutral, easily accessible advice. Since freelance roles have different HR and employment protections compared with pay-as-you-earn (PAYE) roles, it's highly advisable to familiarise yourself with ACAS and how it can support you in the event of an employment-related issue.

Filing your taxes and self-assessment

Filing your tax return can be an extensive task, especially if you take on multiple roles with different hirers across different industries. Choosing the right method at the outset will make filing easier.

As a UK supporting artist, you have two filing options:

• Paper returns involve downloading, filling out and sending forms to HMRC. It's a traditional method, but it can be error prone and slow.
• Online returns are faster and more efficient, with instant submission and fewer mistakes. Many artists find this method simpler and quicker.

Choosing the right method can save you time and stress, letting you focus on securing your next role!

Submitting and understanding self-assessment

• HMRC self-assessment: If you’re freelancing or self-employed, you must sign up for self-assessment with HMRC. You are legally obliged to report your earnings as a supporting artist by 31 January each tax year. You are responsible for registering yourself for self-assessment with HMRC. You do this via the Government Gateway, the secure online platform where you file your tax return.
• Self-assessment tax return guide: Self-assessments can be tricky for freelancers, so HMRC provides a helpful step-by-step guide to assist you in navigating your self-assessment tax return. This covers everything from registering for self-assessment and gathering your documents to filing online, so be sure to check it out.
• HMRC information for freelancers in the entertainment industry: HMRC offers specific guidance for actors and performers to help you determine your employment status for tax purposes. It is highly advisable to review these resources to understand both your employment status and your rights as a worker in the entertainment industry. The guidance covers factors such as your engagement patterns and the level of control you have over your work, helping you to clarify whether you are considered employed or self-employed. It also explains how and when an employment agency can deduct fees or commissions from workers in the entertainment industry. There are specific rules and exemptions regarding commissions and fees charged to actors, so make sure to read through this information!
• Apps and digital tools: Managing your taxes manually can be overwhelming. Fortunately, there are several handy apps and tools to help you through the process, including the HMRC app, and Pie, a free tax app which works in partnership with Creative UK and provides specialised tax advice for creative professionals, ensuring you get the best support tailored to your industry. Launched in 2024, the Pie app offers real-time tax calculations, bookkeeping and expense tracking. You can securely connect your bank accounts, automatically import income and submit tax returns directly to HMRC. With sector-specific tax tips, Pie helps you to maximise refunds and stay on top of your personal finances.

What happens if I file my taxes incorrectly?

Failure to notify HMRC of your tax status

"Failure to notify" happens when you don't inform HMRC about your tax obligations or changes in your tax situation on time. For supporting artists in the UK, this might mean not registering for and filing your self-assessment, missing out on reporting additional income or failing to let HMRC know about any new business ventures. Staying on top of these updates will help you to avoid penalties.

Steps to correct failure to notify

If you have failed to notify HMRC, it is crucial to rectify the situation immediately. Begin by identifying the tax period or event you neglected to report and gathering all necessary documentation to support your case. Clearly explain the oversight and provide any supporting evidence that demonstrates your intent to comply with the tax regulations. Penalties can be severe, amounting up to 100% of the unpaid tax, plus interest.

Exemptions from penalties

There are some situations where HMRC will not impose a penalty for failure to notify:

• Reasonable excuse: If you have a reasonable excuse for not meeting their tax obligations on time, such as unforeseen personal circumstances or events beyond their control, HMRC will take this into account.
• Non-deliberate failure: The failure to notify must not be intentional. HMRC differentiates between accidental mistakes and deliberate non-compliance.
• Prompt notification after excuse: After the reasonable excuse has ended, you should inform HMRC without unnecessary delay. This means acting promptly to correct the situation. A ‘reasonable excuse’ is anything that genuinely prevents you from meeting your tax obligations in a timely manner, despite your best efforts to comply. Once the reasons for the delay no longer apply, you should act quickly to ensure that you are back in good standing with HMRC. By being proactive and understanding your responsibilities, you can navigate their tax obligations more effectively, ensuring peace of mind and focus on their creative pursuits. Staying informed and timely in notifying HMRC can help avoid penalties and foster a smoother working experience in the industry.

Regulatory developments impacting freelance actors and performers

The HMRC Digital Platform Reporting Initiative is a new regulation designed to bring transparency and simplicity to the gig economy, especially for those in freelance acting roles. Starting January 1, 2024, digital platforms that connect performers with agents and subsequently, productions (hirers), will be required to report the income you earn directly to HMRC. If you're working as a freelance actor through platforms like casting websites or project booking services, this means your earnings will likely be automatically reported. The goal of this initiative is to help you get your taxes sorted from the very beginning and to combat tax evasion. The platforms you use will collect and verify your information and send annual reports to HMRC. This initiative means that it is essential for supporting artists to understand how to submit their self-assessment in full and on time.

Interested in becoming a supporting artist on UK film and TV productions? Find out more here.