Allowable expenses

The actor has many facets to his discipline.  The descriptions of the various expense headings can be modified according to the role it plays in the actor’s repertoire.  One is restricted somewhat by the all embracing interpretation that the taxman puts upon its own definitions of what expenses can be claimed.  The legal mantra is that expenses claimed are to be “wholly and exclusively incurred in the performance of the business” but this is not always clear cut and may cover a multitude of sins. 

By a process of elimination one can see that a media person’s expenditure bears no relation to that of say, a taxi driver or plumber.  Generally the taxman would not allow clothing as an expense but if an actor were to buy clothing for a particular performance or for rehearsals then this expenditure would be allowable. Also if a performer were required to attend a film premiere where they are likely to be photographed for publicity purposes then the outfit they chose to wear could also be allowable. 

Broadly speaking everything an actor does can be related to his work.  He has to know what is going on in the world of theatre and television.  But, and it is a big but, the claiming of expenditure, wholly and exclusively, has to be done with care and not to abuse.  Over claiming will lead to problems later on, if the taxman decides to investigate.

For further advise and all your accountancy and taxation needs contact Kevin Beale, Graham Berry or Richard Nelson at Breckman & Company, Chartered Certified Accountants – “leading showbusiness accountants” (The Stage)

Kevin Beale FCCA October 2012

The content of this article is intended for general guidance only and represents our understanding of current law and HM Revenue & Customs practice. No responsibility for loss by any person acting or refraining from action as a result of this article can be accepted. We cannot assume legal liability for any errors or admissions this article may contain.