Hi
I've got a new actor (TV/film) client. I'm looking for details of what they can claim against income (as they are allowed some things most people can't have (e.g. some clothes).
The previous accountants have just disallowed 50% of most items. Is there a good reason for this, or should the basis be more accurate.
Also, any (simple) help re National Insurance (i.e. no Class 2 and 4 but 1 instead) would be helpful
DP
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Actors
Sounds like to previous accountant was very lazy.
I have a couple, but all mine have been s/e for over 10 years so I was able to arrange for NIC exemption when the new rules came in, as they also receive most of their payments through agents. When the odd one slips through there is a box on the sa form (3.96 i think) where you enter any amount included in the turnover that class 1 is deducted. Class 4 NIC will not be charged against this amount.
Clothes are supposed to be for "performance use only" but a good coat, boots or that type of thing, to protection to use on location is usually allowable - as well as make-up etc. They tend to be allowed a lot of things "by consession" but as long as you keep it reasonable........ (what ever that means:-)!)
It would be worth your while talking to your client asking why they felt they needed to claim this (or that) items. Put that together with your own knowledge you should be able to decide for yourself what you can or cannot cliam and advise your client for the future.
allowable actor deductions
Makeup is allowed for people with "regular" work - such as TV show hosts on telly every day. Makeup is usually supplied for "occasional" work - such as film performances, but may still be allowable if they are "stars" - and have to "keep up appearances". Reasonable costs are allowed - going for fu-fu-chi-chi high priced stuff is personal choice, and not necessarily going to be allowed - unless they're promoting it, in which case may be getting it "free" - and should have to pay taxes on the receipt of the goods (less a deduction for the use of the goods).
Clothing is the same, if they're providing it for the appearances. Especially if it's not being used for "everyday" running about town, but rather for public appearances. It shouldn't be something you can wear in public on a downtown street without looking a right twit, such as ballgowns and tuxes and red leather trench coats. I don't know a single starlet who doesn't deduct her Oscar gown, since you can't be seen in it ever again.
Note to Ebenezer Scrooge
Limited company can also bring about a whole set of different problems as well. Don't forget that clothing that is used by the actor not in his/her role as a "business" is a taxable benefit. It might however be more tax efficient to pay the benefit charge over a period of years (often not a lot) rather than buying the item outright.
Another idea
How about "figure Control" costs or cosmetic costs for the self employed. There is a duality of purpose I suppose but it is a fact that old-looking ugly actresses and actors aren't likely to get much work?