If you’re an actor working as a Sole Trader in the UK, there are many things you can claim back as expenses for your business. Every penny you claim as an expense means less tax you have to pay at the end of the year when you come to file your Self Assessment with the HMRC. Here are 6 top tax tips for items and services you can claim back as expenses.
1. Agent fees
Having the right agent can be difference between acting in a low budget commercial and the big role which will skyrocket your career. Unfortunately, agent fees are quite high. But, due to tax savings, those fees turn out not be as unreal as it may seem at first. If you claim your £3,000 on agent fees as an expense, you will save £600 in tax.
2. Costume costs
Sometimes, even the best actors cannot pull off a character without the correct costume. While most studios offer a wardrobe for its cast, you might stumble into a production where you have to bring your own. So, despite a higher price, you should invest £1,200 in your own costumes. After all, you save £240 in tax.
3. Portfolio costs
Your portfolio is the first impression which the casting agent has of you. In order to make the cut, you must make it the best you can. Update it, hire a designer, spell-check it. Invest £900 in polishing it, and not only will your chances increase, but you will also save £180 in tax.
Many skills in acting like facial expressions, emotions, accents, and improvisation are the ones which separate the great actors from the good ones. Even though some of them can be closely connected to talent, with hard work and dedication close to anything can be mastered. Constantly improving yourself and learning new techniques may cost you £600 a year, but you will become a better actor with £120 in tax savings.
5. Equity membership
Joining a union can have huge benefits for you if you’re an actor. It can protect, represent and help manage your career. And the best news, joining Equity and other unions is classed as a business expense. A £219 annual membership to a union can save you £44 a year in tax savings!
So, there you have it. 5 ways to save money every year on your taxes if you’re a UK Sole Trader. And to make keeping track of all your expenses even easier, 1Tap Receipts exports all of the key data from a simple photo of your receipt meaning you’ll never have to type out another receipt again when claiming back expenses.