Here at Axia Sports & Media Group, we work with many models and understand your income streams and allowable expenses. With our specialist help, we can guide you through the complexities you can encounter when dealing with tax deductible expenses. See our Q & A below for more information.
What kinds of expenses can I claim for?
Some are more obvious than others, however, there are a range of expenses that you can claim. One example is if you use your home as an office. You may not be aware that you’re probably due a tax refund! The following list shows what you can get relief on:
- Clothing – whilst an obvious one, there can be penalties for over claiming.
- Agents fees and subscriptions to professional associations, for example, union fees to Equity, The Model Alliance.
- Use of home as an office. For example – You have 4 rooms in your home, one of which you use only as an office. Your electricity bill for the year is £400. Assuming all the rooms in your home use equal amounts of electricity, you can claim £100 as allowable expenses (£400 divided by 4). If you worked only one day a week from home, you could claim £14.29 as allowable expenses (£100 divided by 7).
- Advertising – any way that you promote yourself and additions to your portfolio
- Travel and related expenses
- Makeup and hair – there does have to be a link to your work
- Cosmetic surgery – for example teeth straightening for close up work
- Health and gym membership – this can be dependent on what you do
- Insurance – any premiums must be deemed ‘wholly and exclusively for the purpose of your business’ we can ensure that any refunds are accurately calculated.
Our offices on both sides of the Atlantic enable us to support you wherever you’re based or work! We provide all general business advice and tax compliance through to wealth protection and tax advice. Wherever your work takes you, your dedicated accountant will be with you every step of the way.
What advertising is covered for a claim?
Getting yourself seen and heard is a vital part of your industry so it’s important that you keep as much of your hard-earned income as possible. For instance, we can help you claim if you’ve been mentioned in an article or if you run any ad campaigns or create your own blogs. Don’t miss out, let us take care of what you can and can’t claim.
Can I claim a tax refund for professional development?
Expenses must be deemed as ‘wholly’ linked to your job or business, therefore it will be dependent on what development you want to pursue. One example might be training that helps you to expand into another area such as designing your own brand of clothing therefore, you may need to undertake a marketing course which will enhance your profitability. Our accountants are used to working with models who are at varying stages of their career and understand the complexities you may encounter whatever stage you’re at.
What if I only work part-time?
Regardless of where you work or how often, we’ll ensure that you only ever pay the tax you owe. We appreciate that you may have a range of income streams from full or part-time work, depending on projects or promotional campaigns. Which is why we can also minimise the tax you pay even though the UK has a Double Taxation Agreement with many countries.
What is a tax return and how much tax do I owe?
Our experts will determine the correct tax to be deducted at source to maximise your earnings, whether you’re employed or self-employed. Ensuring that you pay any tax twice yearly via self-assessment we will always advise you of all tax-deductible expenses. Self-assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.
What if I haven’t claimed previous years?
Don’t worry, if you are owed any money from the taxman, we’ll ensure you get it back! We’ll help you keep as much money as possible from all your hard work.
How do I know what I can’t claim for?
There are some things to be mindful of such as opting for ‘simplified expenses’. Under the new cash basis, this means you won’t be able to set off any losses against other income. However, we can ensure this doesn’t limit your expense claims and even if you don’t think you have any ‘fixed assets’ we’ll ensure that any deductions from your taxable income will be made.
What information will I need to make a claim?
We can help you make a claim using information about your income and expenses. Details of any benefits such as insurance will also be needed to enable us to take into account all allowable expenses.
How far back can I claim?
At present, claims can only go back 4 years so don’t waste any more time in finding out what you could be owed. We respond quickly to meet client’s needs and can speedily get your tax requirements underway. Let us help you to keep the maximum amount possible from your earnings.
When can I expect a refund?
As a guide, HMRC aim to process refunds within 12 weeks, however, we will monitor this for you and liaise with HMRC on your behalf leaving you valuable time to do what you do best – Shine!