An Actors’ Guide to Registering as a Freelancer in the UK

You need to register as self-employed with HMRC in order to pay taxes. More specifically, you should register once you earn £1,000 from self-employed work in a tax year. 

It’s advisable to register as a sole trader as soon as possible if you intend to seek paid work, so you can avoid missing any deadlines set by HMRC.

The latest you can sign up is 4 October in your second (tax) year of working. If you haven’t registered by then, you could face a fine.

Go to the HMRC website and choose “Set up as a sole trader.”

When registering, you’ll need to provide personal details such as: 

• Your name (it’s recommended performers use their name as their business name)
• National Insurance number 
• Freelancer start date (use the date you’re registering unless you’ve already started working)

You’ll then receive a Unique Tax Reference (UTR) number and activation code by post. Once you’ve activated your account online, you’re officially registered.

If your income exceeds £90,000 per year (a dream for many budding actors!), you must register for VAT. If you earn a little less, voluntary VAT registration may be beneficial depending on your circumstances. Speak to a specialist accountant or contact HMRC if you need further advice.

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Tax returns can feel tedious and complicated, but they are a necessary legal obligation if you are freelancing in the UK, including as an actor or performer.

Each tax year, submit your earnings to HMRC and they will work out how much tax you owe or if you need a tax rebate. It’s a legal obligation to do it by 31 January each tax year. 

You pay tax only on your profits – that is, income minus any eligible expenses from what you earn.

You’re not responsible for working out how much tax you owe, but you need to keep accurate accounts of what you earn and any expenses for the tax year. 

As an actor, your income can come from multiple sources, such as royalties, speaking at events, or one-off gigs. Accurate financial planning and record-keeping is crucial to maximise your earnings and ensure that you’ve submitted tax returns correctly.

It doesn’t have to be complex. Old-fashioned pen and paper (if you’re clear and organised!) or a spreadsheet or bookkeeping software like Pie will do. Keep digital or physical receipts in order by logging them online with a spreadsheet or accounting software. 

If you use an accountant, they will need to see this evidence to calculate the tax owed.

The higher the expenses you can state on your tax return, the less tax you pay. But what can be eligible as expenses can be tricky to work out.

You can claim for expenses specifically and exclusively for your work, such as:

• Travel costs: transport to auditions, rehearsals, and performances
• Professional fees: paying agency commission, headshots, and casting websites
• Training and education: acting classes or workshops
• Costumes and props: items required for specific roles
• Home office space (if used regularly for admin or self-taping)

If it directly helps you earn income, there’s a strong chance it can be claimed.

Things like phones (which you also use personally) or food and drink purchased on the go (standard daily expenses) are not tax deductible. Also, if you land a long-term role in one location, it could be classed as a commute and is no longer tax deductible. 

If you work more than 25 hours a week from home, use HMRC’s simplified expenses table rather than trying to figure out the amount of personal vs. professional usage.

Currently, every sole trader has an allowance of £1,000 for which you do not have to provide any proof. If your total expenses for the year is less than that, don’t write down the lower total on the tax return. Simply tick the Trading Allowance box instead. 

If you’re unsure what expenses to claim, contact HMRC.

Another reason to retain any invoices and receipts is you could be asked to provide evidence by HMRC at a future date. 

By law, you must be able to provide accounts for the past five years, so make sure you keep records for not only the current tax year but the five previous ones to be on the safe side.

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It’s recommended to open a separate bank account for acting income and expenses to simplify bookkeeping and demonstrate professionalism if you’re ever audited.

It’s also wise to set up a savings account and put around 30% of your earnings into it whenever you get paid to stay on top of taxes.

The tax year runs from 6 April to 5 April. At the end of the tax year, you need to submit a self-assessment tax return by 31 January the following year. Do it as soon as possible after the tax year ends in April, so you can submit and pay any amount owed by the January deadline.

When you submit your tax return, you’ll just supply the overall figures for income, expenses and profit. 

You can do it online and, once you do, HMRC will calculate how much you owe in tax and National Insurance.

Depending on how much you earn, you’ll pay 20% to 40% tax on all income above the personal tax allowance rate (which is currently £12,570).

National Insurance contributions also depend on the amount you earn in a year. 

If your profits are below £6,845, you don’t need to make Class 2 contributions. But it is recommended to make voluntary contributions, to keep up to date with these and secure state pension and benefit entitlements. 

You can check your National Insurance record online to see how many full years you have to contribute.

If your profits are more than £12,570 per year, you also need to pay Class 4 contributions. Personal tax allowance and tax bands may change each tax year, so stay updated through HMRC.

There is no statutory sick pay or pension contributions for the self-employed. Many freelancers take out self-employed income protection insurance to help avoid financial difficulties if injury or illness occurs.

The earlier you start saving for retirement, the better. Look at starting up a flexible pension plan you can contribute to. Even if it’s just a small monthly amount, it will benefit you later.

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If you work as an actor only occasionally or you have relatively simple outgoings and income, then you most likely can do a self-assessment yourself. 

Some freelancers hire an accountant to help calculate and submit tax returns, which can be useful if you have complex circumstances, such as working overseas, preparing accounts for a Limited Company, receiving grant money, earning over £50,000 from self-employment, or having other taxable assets such as an investment property. 

A good accountant can help you identify deductible expenses, file accurately, and structure your income to reduce overall tax liability.

Yes, absolutely. Performers often take on other work, such as teaching, hospitality, and other creative projects, in between paid acting gigs to boost their earnings.

Most actors fall into the category of being partly self-employed and partly employed, so make sure you track which job falls under which classification and inform HMRC of all employment you undertake.

In a PAYE position, tax is typically deducted from every pay packet. If you end up paying too much tax in any year, you’ll usually get a rebate shortly after 6 April, after you have filed your tax return.

If you work as a freelance actor through platforms such as casting websites, it’s likely that your earnings will be automatically reported to HMRC. Double-check to make sure you don’t miss any self-declaration you may need to do.

Be prepared for the realities of freelancing. Being a self-employed actor isn’t just about your craft. It’s also about selling and managing yourself as a business, building relationships, and ensuring that you can support yourself financially. 

Don’t be afraid to ask for help. Seek out communities of fellow actors and creatives or organisations such as Equity, The Actors Guild of Great Britain, and IPSE.

31 January: Online self-assessment tax returns and payment of tax owed

5 April: End of the tax year

31 July: Deadline for the second payment on account, if applicable