Tax Season Tips (Deductible Expenses) AD I Paid Partnership with TaxScouts
There's little else that will make a self-employed person shiver like the phrase "Taxes Are Due". Did you just hear an ominous echo or is it just me?
Seriously though, its one of, if not THE, thing we fear the most!
Some of us are organised, making sure we've filed our return by April 6th so we can actively ignore it for the rest of the year. Some of us do the opposite and pretend that it pretty much doesn't exist until we have no choice but to drag out the bank statements, open our spreadsheets and try not to sob into our cup of tea.
Admittedly I'm the latter, relying on cheesy romantic comedies and chocolate to get me through the process, because if you can't yet eat loads of chocolate while screaming, "YOU DESERVE BETTER RYAN GOSLING" and crying into your calculator, are you even doing your taxes right?!
What I have learned over the years when it comes to doing your taxes is that knowledge is power and anything that helps you feel empowered when doing something as specific as your taxes, is very important! Sometimes empowerment means being unafraid to admit that you can't do it alone and you need help!
And if you need help with your taxes that's more than okay!
One of the UK's first digital and affordable tax return services. And I know it’s not just me wondering why they didn't exist sooner?! And I know it’s not just me hoping they never leave our self-employed lives again because the support, the efficiency, the ease *chef's kiss*
They're a budget friendly option for filing your tax return. They take care of doing the calculations, filing your self-assessment and submitting it, with no other hidden costs, all for £119.
That means you get to scream at Ryan Gosling without any distractions knowing that everything is being taken care of!
On their website Tax Scouts promises to do exactly what it does:
They're a company dedicated to making tax and life for the self-employed more accessible and a lot less stressful.
If you head over to their website, they even have incredibly helpful pointers via their guides and tip; should you still choose to do your taxes by yourself.
There's even a blog with some great posts, some dedicated entirely to those of us in performance. Here's one about tax and the film industry! https://taxscouts.com/how-is-tax-different-for-film-industry-jobs-0bc9e9da49d2/
They even have a tax calculator that can help you estimate everything from how much your income tax might be to child benefits and national insurance! https://taxscouts.com/calculator/
I was so excited to work with TaxScouts because as an actor, as a creative, my strong suit has never been in this area of my business and it’s taken me a long time and a lot of learning to gain the confidence I have now when it comes to taxes.
Working with a company that both offers a valuable service and seeks to empower you autonomously is hard to find and as an empowered and autonomous business lady (huh, I like that sound of that), I was so happy to form this partnership!
One of the areas I think most self-employed people stumble on is: DEDICUTABLE EXPENSES. What can they be, how much can you claim, is it appropriate to claim this disastrous date as a business meeting? The usual.
As an actor its always something we must keep on top of! According to TaxScouts, over 20bn of tax reliefs and refunds go unclaimed just because of how little we truly understand about the process! Keeping track of what we can and can't do gets confusing very quickly.
Now so more than ever, making sure our businesses are running as smoothly as they can, retaining the net that they need and calculating things like deductibles correctly is so important.
So here are some of the deductible expenses we can absolutely claim:
• Performance Costs: Need any additional clothing, make up or wigs for your performance? If the company you are performing does not absorb the costs, you at least know that it is deductible as part of your work.
• Research: This often falls under the category of our subscriptions. Yes, that's right, Disney Plus, Amazon Prime, Netflix, Spotify, iTunes, if you regularly use these services to help you in your craft, you can claim them as research! This includes concerts, cinema trips, buying plays and anything else relating directly to your work. You can also claim the transport to get you there. So the next time you get ready to watch a Blockbuster, remember, you're working!
• Training and Classes: Any further learning you are required to do is again part of keeping you ready for your work, and so investing in the continued honing of your professional practice is possible!
• Union and Casting: Accessing your opportunities for working is mostly done through casting websites like Spotlight and Mandy, making sure you have these professional subscriptions in play not only help you access the jobs you need but also your agent.
• Agent and Booking: Speaking of your agents or management, the fees plus VAT they charge for doing work can also be a deductible.
• Branding: For an actor your branding comes in the form of your showreel, voice-reel, booking a photographer for headshots and editorials, a designer for your website and the list goes on. Presenting yourself, your branding, your business, is a deductible.
• Working From Home: Oh yes, 2020 has nothing on us, because we've been working from home since day one. We are the OG's! Your home is your office in which you do your practice and research that means you can additionally add a percentage of:
· Building and Contents Insurance
The list goes on! If you're unsure about any other possible expenses, I've always found this website very helpful or you can contact TaxScouts or Equity to further guide you. http://www.actorhub.co.uk/365/tax-deductions-list-for-acting-expenses
It's so easy to get confused and overwhelmed during this process and with everything that happened in 2020, cutting yourself some slack in 2021 makes sense because sometimes the most efficient thing to do is delegate and get that assistance.
It’s okay to feel overwhelmed. It’s okay to not have the time! It’s even okay that you hate doing it.
It's not too late to take advantage of a service that is designed to help you because this year we will NOT fear January 31st!
