Being an actor isn’t all premieres and award ceremonies. The day-to-day grind can be overwhelming and when you’ve got to manage your bookkeeping and accounting as well, it can cause stress. But there’s a simple answer – give Green & Peter, accountants for actors, a call today and let us handle your bookkeeping and tax returns so you can concentrate on the next audition.
6 reasons why Green & Peter is a great choice accountants for actors
Green & Peter supports many creatives including actors to better manage their accounting. You might be able to memorise a 100-page script but when you look at a spreadsheet all the figures swim around in front of your eyes. You might be good with numbers but dealing with your invoices and receipts eats into rehearsal time. You might want to be better organised and able to plan more, but you just aren’t sure what to do first. Whatever your situation, we’ve seen it all many times before and have helped hundreds of actors feel confident that their finances are in a good place.
There are six common issues that accountants for actors see time and time again. Here’s how we help you manage them.
Erratic income
Actors typically don’t earn the same amount every month, unlike salaried employees. In addition, you often have multiple income sources which can be harder to keep track of. Finally, having an erratic income can make it harder to deal with everyday bills and that dreaded tax bill at the end of the year. Accountants for actors understand these problems; we can help you plan better, especially for your tax bill by getting your accounts done as early as possible and putting in place a system to save for the bill throughout the year.
Lack of tax planning
Tax comes in many forms – income tax, of course, but you may also need to deal with VAT, corporation tax, capital gains and perhaps even inheritance tax. We may not be able to predict the future, but we can plan for the possibilities. When you work with Green & Peter, you’ll get a holistic approach to minimising your overall tax burden by maximising allowable deductions, using all available personal allowances and claiming reliefs where applicable. You’ll be glad you took advice that will help you lower your tax bill.
What expenses are tax-deductible?
One of the most common questions that accountants for actors are asked is ‘What can I claim against my tax?’ The answer is that many of the costs you’ll incur while you’re acting are tax-deductible. But not all of them – which is why an accountant can give you peace of mind that your affairs are all correct. This isn’t an exhaustive list, but here are some of the usual deductions that actors can make:
- Costumes, accessories, props and makeup for existing or potential roles
- Travel expenses to get to auditions and on set
- Accommodation costs – if you are required to stay overnight if you are filming on location, you can claim for hotel, B&Bs or lodgings.
- Food and drinks – again, if you are required to stay overnight, you can claim food costs, otherwise this is NOT an allowable expense.
- Computer equipment and mobile costs – you can claim a percentage of these costs if you also have personal use time
- Working from home costs – claim a flat rate for household bills if you are home-based
- Education and accreditations – training course to improve your craft
- Subscriptions and memberships – this could include professional bodies, guilds and subscriptions such as accounting software.
- Agents fees – all costs for helping you find or improve your work are claimable
- Research expenses – any item purchased or activity undertaken for research into a role can be claimed
- Marketing costs – This could include a portfolio website, Spotlight fees and subscriptions to casting websites. You can also claim for professional photography or videography used to promote your acting services. If you also attend networking events, these can also be claimed.
- Gym membership – this is a deductible expense as you need to keep yourself fit and healthy.
- Bank fees – all costs associated with running your acting business including interest on loans and exchange fees are allowable deductions.
- Admin support – if you use someone to manage your diary, email and travel plans, this cost can be claimed
- Accountancy fees – our fees are also a deductible expense.
If you are incurring another type of expense and you aren’t sure if you can claim it, please give us a call for a no-obligation chat to talk about your finances.
Dealing with receipts
Managing your accounting takes time and effort. It can take up space in your head which could be better used learning lines or rehearsing for your next performance. It’s all too easy to stuff your receipts into a draw all year long and be left with a big mess come January. Not only does it feel overwhelming to deal with, but it also means that you don’t have an up-to-date picture of your finances until you deal with all the paperwork. We can take care of your receipts for you, or we can help you set up a receipt capture tool to make it as easy as a couple of clicks on your smartphone to take control of your expenses.
Getting paid
Self-employed actors often struggle to maintain a steady income due to the nature of their work. On top of that, creatives are sometimes treated unfairly by their customers who fail to pay invoices when they fall due. Accountants for actors can provide a credit control service to help you chase overdue payments, ensuring you aren’t left short of money at the end of the month. If you choose our bookkeeping service, we can raise your invoices and implement automatic chasing of debts to keep the income flowing into your account.
Lack of future planning
One thing we see often is actors without a pension plan. It can be challenging to save for retirement when your income is erratic and you can’t simply sign up for an employer’s scheme. However, pension contributions are one of the most tax-efficient ways to save and you can also reduce corporation tax if you are a limited company director. Ask us how today.
Need help understanding your business finances?
Whether you are a sole trader or you have a limited company, it’s important to get on top of your business finances to ensure you are tax efficient and you can enjoy your acting career to the full, knowing your money is being well managed. Our team of accountants helps actors across London and the UK to build a better financial future through understanding their business tax and money better. Don’t put your head in the sand any longer – call us today on 0208 446 8100. And don’t forget to follow Robert Green on Linkedin.
