Claiming business expenses as an actor
We recently had a discussion with an actor friend about expenses they can claim as an actor. They’d been advised by a company which specialises in handling actor’s finances, and much of it didn’t seem right to us about some of the things they were told they could claim back. It got us thinking about what can be claimed by actors and what HMRC’s view is.
Clothing - Items of clothing bought for a role which can be considered as costume can be deducted from your tax liability. However it must be used only as costume for the role, if you wear it outside of that role then it cannot be claimed as an expense. As with almost all expense claims, HMRC need to be satisfied that the item was “wholly and exclusively” for business. If you cannot show that, then you cannot claim for it and of course if you wear the item if clothing outside of business purposes then you cannot claim for it either.
You also cannot claim for clothing worn to an audition, even if you purchased it for that purpose.
There’s precedent on HMRC not accepting everyday clothing as a valid business expense. In Mallalieu v Drummond [1983] it was ruled that everyday clothes could not be deducted as a valid business expense, even if they were used solely for work.
It’s also important to remember that if you are reimbursed in any way for any costume or props that you have bought then this reimbursement must be classed as income.
Travel - Travel outside of the norm can be tax deductible. So travel to an audition, or if you’re filming a role in another city can all be claimed back, assuming you’re not already reimbursed for this. This applies to any travel outside of your normal working activities. You can’t claim travel if it’s to your regular place of work, as this would be classed as ordinary commuting and therefore not deductible. An example of this would be if an actor had a role at a theatre for 3 months. If they travelled to the theatre every day then this would be their regular place of work, so they could not claim for travel.
The human body - There is a lot of confusion around what can be claimed by actors regarding changes to their body, which could be anything from hair styles, to gym memberships to cosmetic surgery. Again though, this can be simplified by considering the HMRC standards of whether something is ‘wholly and exclusively’ for business purposes. For example, looking at hair styles, if an actor had a haircut because they wanted it to be tidy for an audition, then this would not be tax deductible. However, if they had a role where the character had a specific hair style, say short hair and the actor had long hair normally, then the expense of this hair cut would be tax deductible as it was bought exclusively for the role.
The same can be said of gym memberships. Actors, as human beings, come in all shapes and sizes so there’s no need for an actor to be a specific size in every day life, so a gym membership would not be tax deductible as standard. It would also be hard to show that you only used the gym membership wholly and exclusively for business purposes and not for general use. Where an actor may be able to claim a gym membership or personal trainer is if a specific body shape or size is needed for a role. So if an actor who didn’t normally lift weights was required to bulk up for a specific role then the cost of this could be argued to be tax deductible, but only the cost for the duration of the role.
There are some instances where cosmetic surgery may be classed as tax deductible, but the norm is that it is not, again, think about whether it is wholly and exclusively for business purposes. The example of a valid expense from HMRC is that of a radio presenter with irregular teeth who has worked in radio for years. They then start to do TV work but are advised that their teeth are reducing their TV opportunites. They decide to have cosmetic dentistry to improve their chances. This is allowable as prior to this, the performer was content with their appearance and only had the work done for the TV roles.
Food & Drink - Rules around sustenance are the same for actors as they are for anyone else. Food & drink is generally not tax deductible, but exceptions are around travel, so if the actor had to travel overnight for an audition for example or filming elsewhere for a week, then reasonable food and drink expenses are allowed.
It is important to remember than entertainment is not a valid deductible expense, so if you’re buying drinks or a meal for your agent or potential employer then this is not a deductible expense.
With all expenses, if you’re reimbursed for them you obviously cannot claim them back against your tax.
There is a lot of misinformation out there about actors and entertainers can claim back as valid expenses, much of it on websites that should know better. If in doubt, it’s always advisable to check with HMRC first and foremost as they make and enforce the rules, so they are the most reliable source of information there is.