When the original form FEU8 was completed, it had estimated costs given by the Artist for his expenses incurred in coming to the UK. Income was subjected to withholding tax which has been paid by one of the event Arena's.
Now the hmrc are asking for the actual invoices, the artist is back in his home country, our client has not been able to get the copy of actual invoices to send to hmrc, what happens in this scenario. does hmrc disallow the estimate and amend the tax position?
I would appreciate if any of the members on this forum have knowledge or experience in this area and if they are willing to give guidance or message me.
thank you in advance
Replies (3)
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For whom are you acting? If for the artist, why did he not keep receipts? If not for the artist, why do you care?
If you're unable to support the estimated costs with actual invoices requested by the FEU then your client the promoter will likely have to deduct 20% basic rate tax on the gross amount paid to the foreign entertainer.
You could either make it clear to the entertainer that this is what you'll have to do in the absence of any input from them with the possibility of the entertainer also receiving a notice from HMRC to file a 2017 UK Tax Return if the FEU think higher rate tax might also be due or PM me as this is what we specialise in.