The international artist

Artists who perform overseas are generally liable to tax in the countries in which they perform and may be subject to withholding taxes levied on that income in those countries. This in turn can create a double tax charge, as the artist may well also be subject to tax in their home country, and be required to complete an overseas tax return. The definition of ‘artist’ includes musicians, conductors, dancers, actors, TV and radio personalities and variety artistes, but it does not include conference speakers, administrative or support staff, or managers, unless they are also performers. It makes no difference whether the person appears alone or with choirs, orchestras, ballet companies and circuses.

As a general rule, all income arising in the UK is assessed for UK tax irrespective of where the recipient is based, liability being largely based on an artist’s residency status. It is important to be aware of three key terms: residence, ordinary residence and domicile. The residence status of an individual is a question of fact. A person is resident in the UK if, during a tax year, they are physically present in the UK for more than 183 days or they are frequent visitors to the UK – average annual visits over a four-year period being over 91 days. Ordinary residence is a question of habit and intention and implies residence with some degree of continuity. Domicile denotes the country considered to be an individual’s permanent home.

If an artist is employed anywhere in the world then they will pay UK tax on any earnings received if they are resident and ordinarily resident in the UK; if they are only UK resident then they pay UK tax on duties performed in the UK; and if not resident in the UK then UK tax is only payable on earnings from UK-performed duties. UK personal allowances, which reduce taxable income, are available to individuals resident in the UK, Commonwealth citizens, EU citizens and a resident of any country with which the UK has a double tax arrangement. Travel and subsistence expenses in relation to work done overseas for a non-resident employer will usually be allowed too. In certain circumstances travel costs will also be allowable for the artist’s spouse and children.

Where a payment is made to an overseas artist who performs in the UK then the engager may be obliged to deduct Withholding Tax (normally at the rate of 22%) from those payments, example payments being for appearance fees, broadcasting or media fees, exhibition or box office income, plane tickets or accommodation. Where artists are paid by promoters then the promoter makes the deduction, and if paid via an agent then the agent has the responsibility. If the total payments to an individual artist or group of artists is less than £1,000 (including payments for accommodation and travel costs) no Withholding Tax should be deducted.    

When a performing company visits the UK, its performing employees, as entertainers, will be subject to Withholding Tax. Where payments are made to overseas classical music artistes – held on an approved list by the Foreign Entertainers Unit – then payments may be made without deduction of tax. National Insurance may be due from artists coming over as employees or self-employed, though exceptions apply to artists from EU countries, or countries where the UK has a bilateral social security agreement such as Canada, USA, Croatia, Switzerland and Turkey.  

If the correct payments are not made then the engager is liable. One of the