FEU Tax | Advice to Foreign Entertainers about UK Tax

What kind of payments will suffer deductions?

The law is drawn widely. Examples of such payments are – appearance fees, achievement bonuses, exhibition income, box office percentages, TV rights, broadcast media fees, tour income, tournament winnings, prize-money, advertising income, merchandising income, endorsement fees, and film fees. The scheme also applies to transfer of assets e.g. sports car for a hole-in-one.

Does it matter who receives the payment?

Payments are within the system no matter who receives them. It covers payments to any individual, partnership company or trust whether or not resident in the UK. It is intended to catch payments to loan out – service companies.

What types of appearances are covered?

Any appearance by the entertainer in the UK in his our character as an entertainer will be within the scheme. It also covers promotional activities eg advertising, endorsement of goods and services.

Which entertainers or sportsmen are involved?

An entertainer or sportsmen includes any non-resident individual who gives performances in character in any kind of activity or sport. Some examples – popular classical musicians, athletes, golfers, cricketers, footballers, tennis players, boxers, snooker players, motor racing drivers, jockeys, ice skaters, conductors, dancers, actors, TV and radio personalities.

Are any payments exempt from the withholding tax?

If there is another section of the Taxes Act which requires payer to deduct tax then this takes precedence e.g. if PAYE is due on employment income or income tax on copyright royalties. From 1 July 2012 there is a De Minimis limit equal to the UK Personal allowance currently for 2015/16 tax year £10,600.