Guidance

Non-resident entertainers and sportspersons 2023 (HS303)

Updated 6 April 2024

The following guidance includes calculations.

Read this helpsheet before you refer to any other printed material to save time and reduce the risk of error.

1. Why this helpsheet is important

Some tax rules, and treaty provisions in double taxation agreements, apply only to non-resident entertainers and sportspersons. The sorts of income you get and the expenses you incur may be different from other taxpayers. Also, you may visit the UK infrequently and your UK income may have suffered withholding tax in full or in part. You may therefore need specific help in several areas. This helpsheet will help you to understand the special rules and give you some guidance about various sorts of income, the expenses you can deduct and how to complete the relevant parts of the tax return.

2. How you should use the helpsheet

We suggest you use it as a signpost to direct you to the relevant parts of the tax return for your UK activity as an entertainer or sportsperson. You can return to this helpsheet after each step in the process is completed for the next set of directions.

If you’ve some non-performance UK income, for example, interest or rents, some general advice will also be given towards the end of this helpsheet.

3. What help is available

The special rules for non-resident entertainers and sportspersons are the responsibility of a specialist office — the Foreign Entertainers Unit (FEU), whose contact details are:

Charities, Savings and International 1
HM Revenue & Customs
BX9 1AU

Telephone: 03000 547 395

In addition, other helpsheets are available on specific topics which give more detailed information about particular tax rules, see Self Assessment forms and helpsheets. We will refer to the relevant helpsheets in the computational advice section as each point is covered and they will be summarised at the end of this helpsheet.

4. Computational advice

This helpsheet is only relevant if you’re a non-resident entertainer or sportsperson. Your starting point should therefore be to check your UK tax residence status using the ‘Residence, remittance basis etc’ pages and the ‘notes’ provided with them.

If, having worked through the ‘Considering your residence status’ section, you find that you’re regarded as resident in the UK for tax purposes, ignore the remainder of this helpsheet. Use the tax return guide to help you complete your tax return.

If you find that you’re regarded as non-resident in the UK for tax purposes, put ‘X’ in box 1 of the ‘Residence, remittance basis etc’ pages. You may return to this helpsheet after you’ve completed the remaining relevant boxes on pages RR 1 and RR 2. However, bear in mind that the special rules applying to non-resident entertainers and sportspersons generally makes domicile irrelevant as far as their performance income is concerned.

The information in section 6.62 and 6.63 RDR1: residence, domicile and the remittance basis is modified by the UK’s entertainers and sportspersons rules which also provide for:

• withholding at source as a payment on account of final liability
• the creation of a separate notional UK trade for tax purposes for activity in this country
• income paid to certain third parties, for example, a personal service company, to be treated as made to an entertainer or sportsperson personally

When you’ve completed the ‘Residence, remittance basis etc’ pages you’re ready to complete other parts of your tax return.

To target the information to your particular needs and to minimise the amount of material you’ve to read, the rest of this helpsheet has been split into 3 parts.

Part A — the self-employed individual
Part B — the employee
Part C — partnerships and partners

Please decide which of these options best describes your status in relation to your activity as a non-resident entertainer or sportsperson and follow the guidance in the relevant part.

5. Part A — the self-employed individual

As a self-employed person you should complete Self-employment (full) pages using the Self-employment (full) notes, with the following modifications. Box numbers refer to the Self-employment (full).

5.1 Accounting period

The basis of assessment is the profit from UK activity arising in the year ended 5 April. In practice, UK activity by non-resident entertainers and sportspersons is usually limited to 1 or more short periods in the year and the receipts and expenses can be easily identified and summarised. The accounting period should, however, generally be shown as starting on 6 April and ending on 5 April.

If your worldwide trade, profession or vocation commenced or ceased in 2022 to 2023 complete box 6 or 7, otherwise you may leave them blank. You can ignore boxes 11, 12, and 14.

5.2 Turnover

This should include amounts applicable to UK activity no matter who it’s paid to. For example and where appropriate:

• performance income
• appearance fees
• bonuses for UK performance
• exhibition income
• box office percentage
• broadcasting or media fees
• tournament winnings
• prize money
• venue merchandising income
• transfer of assets
• sponsorship or endorsement monies.

If any amounts are paid under a contract covering several countries, or assets are transferred you should apportion the income, or the value of the asset transferred to the UK on a just and reasonable basis.

5.3 Expenses

You should claim UK-specific expenses and a proportion of any expense common to several countries including the UK. When expenditure common to several countries has been incurred you should apportion the expenditure to the UK on a just and reasonable basis. Helpsheet 229 Information from your accounts may add to the general guidance on turnover, allowable expenses and taxable profit or loss given in the Self-employment (full) notes. You should include any expenses met on your behalf and not reimbursed by you in your turnover and you should claim it separately as expenditure.

5.4 Overseas tax

You should claim any tax which you pay in the UK on your performance-related income in your home state if it has a double taxation agreement (DTA) with the UK. Your home state tax is not deductible in arriving at your performance-related profit for UK tax purposes.

5.5 Capital allowances

Helpsheet 222 How to calculate your taxable profits explains how capital allowances and balancing charges are calculated. You may only claim capital allowances for assets used for the UK notional trade. If you’ve purchased assets for your worldwide trade but they are not used in connection with your UK activity, you should not claim allowances. If assets are used in your worldwide trade including UK activity, do a separate computation for each asset so used. The allowances must be restricted to take account of the use of the asset in non-UK territories and private use. One way to do this would be to restrict the allowances using the fraction:

Number of days asset used for UK activity ÷ 365

The helpsheet also gives guidance on the calculation of an allowance or charge when an asset, on which allowances have been given, is sold.

5.6 Adjustments to arrive at the taxable profit or loss

Your basis period will begin on 6 April 2022 (unless your worldwide trade, profession or vocation commenced after that date when you should use the date of commencement) and end on 5 April 2023 (or the date your worldwide trade, profession or vocation ceased, if earlier). You may ignore boxes 13 and 68 to 72. Take the figure in box 64 to box 73 if it’s a profit or take the figure in box 65 to box 77 if it’s a loss.

5.7 Losses

Helpsheet 227 Losses tells you how you may claim Tax Relief on losses. It will help you to decide which of the boxes 74 to 78 to complete if box 77 shows a loss or there’s a loss brought forward from a previous year.

5.8 Profit summary

To finalise page SEF 4 for your activity as an entertainer or sportsperson, if there was a net profit figure in box 73 complete boxes 74, 75 and 76.

5.9 Pages SEF 4 and SEF 5 entries

Non-residents are exempt from Class 4 National Insurance contributions, so put ‘X’ in box 101 and leave boxes 100 and 102 blank. Box 82 should be used to record the withholding tax paid on your income as an entertainer or sportsperson. Unless you’ve prepared a balance sheet specifically for the UK notional trade, you may leave boxes 83 to 99 blank.

Before you move on, please enter the following information in the ‘Any other information’ box, box 103, in the Self-employment (full) pages:

• name and tax reference of the company who employs you if it’s registered or managed and controlled in the UK
• amount of any money paid, or to be paid to you, by the company for your UK activity

This information will enable the FEU to make any other adjustments needed under the special entertainers and sportspersons rules.

5.10 Next steps

When you’ve completed the Self-employment (full) pages of your tax return consider whether other supplementary pages are needed, then go back to page TR 2 in the tax return.

If you identify any UK source income or capital gains you should refer back to section 6.62 and 6.63 of RDR1: residence, domicile and the remittance basis to see if the relevant item is liable to UK tax. If it is, see Self Assessment forms and helpsheets. You should fill in any supplementary pages before you go back to page TR 2 in your tax return.

The ‘Residence, remittance basis etc notes’ will also help you to decide whether allowances are due to you. They do not, however, explain which of the reliefs are not available to non-residents or are only available in certain circumstances.

You should complete the remaining questions on your tax return as appropriate.

If you want to calculate your own tax, you will need the Tax calculation summary pages and notes. Include UK withholding tax in box A236 on the working sheet.

The helpsheets available to help self-employed non-resident entertainers and sportspersons referred to in this section are:

• Helpsheet 222 How to calculate your taxable profits
• Helpsheet 227 Losses
• Helpsheet 229 Information from your accounts

6. Part B — the employee

If you’re employed by a company or individual(s) in connection with your activity as an entertainer or sportsperson, answer the following questions to determine how you need to proceed.

Was the money from your entertainment or sporting activity paid to the following. Please tick either ‘No’ or ‘Yes’.

	No	Yes
A person, for example, a company, you control
A person resident in a country where the rate of tax on profits does not exceed 25%
A trust or other settlement partly or wholly set up by you
A person with whom you have a contract which will or may give you an amount approximating to the net profit from the activity

If you answered ‘No’ to all of these questions and you regard yourself as an employee, you will need to complete the ‘Employment’ (and perhaps the Additional information) pages using the notes for these and Helpsheet 211 Employment — residence and domicile issues.

The aim of the notes and helpsheet is to isolate the money or benefits for your UK activity. If you’ve a multi-territory employment contract, you may wish to contact the FEU for advice on how your money from the company and benefits should be apportioned into and out of UK liability. When you’ve completed the Employment page, and the Additional information pages, if relevant, see the ‘Next steps’ below.

If you have answered ‘Yes’ to any of these questions, the receipts and expenses linked to your activity in the UK are treated as made to or by you personally. The Employment page should not be used for your entertainment or sporting activity. Instead, you should complete the Self-employment (full) pages using the Self-employment (full) notes with the following modifications.

6.1 Accounting period

For non-resident entertainers and sportspersons this will generally be 6 April to the following 5 April. If your employment commenced or ceased during the year, complete boxes 6 or 7, otherwise you can leave these blank. You can ignore boxes 11, 12 and 14.

6.2 Turnover

This should include payments for UK activity no matter who has received it, for example and where appropriate:

• performance income
• appearance fees
• bonuses for UK performance
• exhibition income
• box office percentage
• broadcasting or media fees
• tournament winnings
• prize money
• venue merchandising income
• transfer of assets
• sponsorship or endorsement monies

If any amounts are paid under a contract covering several countries or assets were transferred the income or the value of the asset transferred should be apportioned to the UK on a just and reasonable basis.

6.3 Expenses

Find out the expenses which have arisen as a result of your activity. They may be expenses which have arisen wholly in the UK, for example, hotel expenses or a proportion of any expense common to several countries.

When expenditure common to several countries has been incurred the expenditure should be apportioned to the UK on a just and reasonable basis. The Self-employment (full) notes provide general guidance on turnover, allowable expenses and taxable profit or loss.

If a promoter or independent third party has met expenses on your employer’s behalf without reimbursement, for example, travel, you should include the amount in turnover and claim separately as expenditure.

6.4 Overseas tax

You should claim any tax paid in the UK on your performance-related income in your home state if it has a DTA with the UK. Your home state tax is not deductible in arriving at your performance-related profit for UK tax purposes.

6.5 Capital allowances

Helpsheet 222 How to calculate your taxable profits and Helpsheet 252 Capital allowances and balancing charges shows how these allowances are calculated. Capital allowances can only be claimed in your calculations if assets are used for the UK activity. If the assets acquired by yourself or your employer are used for worldwide entertainment or sporting activity, but they are not used in the UK, you should not claim allowances. If assets are used in several territories including the UK, a separate computation is needed for each asset. The allowances must be restricted to take account of use of the asset in non-UK territories and private use. One way to do this would be to restrict the allowances using the fraction:

Number of days asset used for UK activity ÷ 365

Helpsheet 252 also gives guidance on the calculation of an allowance or charge when an asset on which allowances have been given is sold.

6.6 Adjustments to arrive at the taxable profit or loss

The Income Tax basis period will begin on 6 April 2022 (unless your employment commenced after that date when you should use the date of commencement) and end on 5 April 2023 (or the date your employment ceased, if earlier). You may ignore boxes 12 and 68 to 81. Take the figure in box 64 to box 73 if it’s a profit or take the figure in box 65 to box 77 if it’s a loss.

6.7 Losses

Helpsheet 227 Losses, tells you how you may claim tax relief on losses. It will help you to decide which of the boxes 74 to 78 to complete if box 77 shows a loss or there’s a loss brought forward from a previous year.

6.8 Profit summary

To finalise page SEF 4 for your activity as an entertainer or sportsperson, if there was a net profit figure in box 73 complete boxes 74, 75 and 76.

6.9 Pages SEF 4 and SEF 5 entries

Non-residents are exempt from Class 4 National Insurance contributions, so put ‘X’ in box 101 and leave boxes 100 and 102 blank. Box 82 should be used to record the withholding tax paid on your activity as an entertainer or sportsperson. As you do not have a balance sheet for the UK activity, you may leave boxes 83 to 99 blank.

Before you move on, please enter the following information in the ‘Any other information’ box, box 103, in the Self-employment (full) pages:

• name and tax reference of the company who employs you if it’s registered or managed and controlled in the UK
• amount of any money paid, or to be paid to you, by the company for your UK activity

This information will enable the FEU to make any other adjustments needed under the special entertainers and sportspersons rules.

6.10 Next steps

When you’ve completed the relevant pages of your tax return for your entertainment or sporting activity, consider whether other supplementary pages are needed. We’ve sent you the tax return guide to help you.

If you identify any other UK source income or capital gains, you should refer back to section 6.62 and 6.63 RDR1: residence, domicile and the remittance basis to see if the relevant item is liable to UK tax. If it is see Self Assessment forms and helpsheets. You should fill in any supplementary pages before you go back to page TR 2 of your tax return.

If no more supplementary pages are required you will only have to complete either box 8 and box 1 (if the Employment page was completed) or box 8 and box 2 modified to read ‘were you treated as self-employed’ (for example, if you were directed to complete pages SEF 1) leaving box 1 blank before proceeding to the reliefs/allowances sections.

The ‘Residence, remittance basis etc notes’ will also help you to decide whether allowances are due to you. They do not, however, explain which of the reliefs are not available to non-residents or are only available in certain circumstances.

You should complete the remaining questions on the tax return as appropriate.

If you want to calculate your own tax, you will need the Tax calculation summary pages and notes. Include all UK withholding tax in box A236 on the working sheet.

The helpsheets available to help employed non-resident entertainers and sportspersons referred to in this section are:

• Helpsheet 211 Employment — residence and domicile issues
• Helpsheet 222 How to calculate your taxable profits
• Helpsheet 227 Losses

7. Part C — partnerships and partners

A partner, who is not resident in the UK, is taxable on their share of the profits arising to the partnership from the activity which the partnership carried on in the UK. Helpsheet 380 Partnerships: foreign aspects, gives advice on who should make a Partnership Tax Return and what it should include. The advice contained in this section assumes your partnership consists solely of individuals who are all entertainers or sportspersons. If the partners include a company, a trustee or any person who is not an entertainer or sportsperson, please contact the FEU for advice before proceeding further, as special rules exist which may require their share of receipts and expenses to be treated as made to some or all of the remaining partners.

7.1 Partnership Tax Return

The partnership return of profit from UK activity should be completed by the partner nominated to complete the tax return using the Partnership Tax Return and Guide with the following modifications.

7.2 Foreign income and chargeable assets

The reference here is to items chargeable to UK tax.

7.3 Accounting period

You may ignore the references to the return period and accounting periods in the guide as the basis of assessment is the profit from UK activity arising in the year ended 5 April. In practice, UK activity by non-resident entertainers is usually limited to one or more short periods within the year and the receipts and expenses can be easily identified and summarised.

The accounting period should, however, generally be shown as starting on 6 April and ending on 5 April.

You should only complete boxes 3.7 and 3.8 if the partnership commenced or ceased in the year. You can ignore boxes 3.10, 3.11, 3.12 and 3.13.

7.4 Turnover

This should include amounts applicable to UK activity no matter who it’s paid to. For example, and where appropriate:

• performance income
• appearance fees
• bonuses for UK performance
• exhibition income
• box office percentage
• broadcasting or media fees
• tournament winnings
• prize money
• venue merchandising income
• transfer of assets
• sponsorship or endorsement monies

If any amounts are paid under a contract covering several countries, or assets are transferred the income or value of the asset transferred should be apportioned to the UK on a just and reasonable basis.

7.5 Expenses

You should claim UK-specific expenses and a proportion of any expense common to several countries, including the UK. When expenditure common to several countries has been incurred the expenditure should be apportioned to the UK on a just and reasonable basis. The Partnership Tax Return Guide provides general guidance on turnover, allowable expenses and taxable profit or loss. Any expenses met on behalf of the partnership and not reimbursed by it should be included in turnover and claimed separately as expenditure.

7.6 Overseas tax

Any tax which the partnership pays in the UK on its performance-related income should be claimed in the partner’s home state if it has a DTA with the UK. Home state tax is not deductible in arriving at the partnership’s performance-related profit for UK tax purposes.

7.7 Capital allowances

Helpsheet 222 How to calculate your taxable profits is available to explain how these allowances are calculated. The partnership may only claim capital allowances for assets used for the UK notional trade. If it has purchased assets for its worldwide trade but they are not used in connection with its UK activity, allowances should not be claimed. If assets are used in the partnership’s worldwide trade including UK activity, do a separate computation for each asset so used. The allowances must be restricted to take account of use of the assets in non-UK territories and private use. One way to do this would be to restrict the allowances using the fraction:

Number of days asset used for UK activity ÷ 365

Helpsheet 222 also gives guidance on the calculation of an allowance or charge when an asset on which allowances have been given is sold.

7.8 Adjustments to arrive at the taxable profit or loss

Use box 3.98 to record any UK withholding tax paid on the partnership income from entertainment or sporting activity.

As the partnership is unlikely to have prepared a separate balance sheet for the notional UK trade, boxes 3.99 to 3.115 can be left blank.

7.9 Question 7 — other income

This is another reference to items chargeable to UK tax. Section 6.62 and 6.63 of RDR1: residence, domicile and the remittance basis will indicate situations when a ‘Yes’ answer will be appropriate and boxes 7.7A to 7.9A of the Partnership Tax Return need to be completed.

7.10 Partnership Statement

This is a summary of the main boxes on previous pages plus an allocation of those items between the partners. Use the basis period already identified on the Partnership Tax Return (generally 6 April 2022 to 5 April 2023). Tax withheld should go in box 24A.

7.11 Other information

You should complete question 10 on page 8 of the Partnership Tax Return giving details of provisional figures and any other additional information you consider relevant.

7.12 Partner’s returns — Partnership (full) pages

When the Partnership Tax Return is finalised, you will be in a position to complete the Partnership (full) pages using the notes provided with the following modifications.

Your basis period for your entertainer or sports partnership will be the one identified on the Partnership Tax Return (generally 6 April 2022 to 5 April 2023).

Your share of profit or loss for 2022 to 2023 should be the one shown on the Partnership Tax Return and should be entered in box 16 or box 21 of the Partnership (full) pages, as appropriate, without adjustment.

7.13 Losses

Helpsheet 227 Losses provides information on how the partnership may claim tax relief on losses. It will help you to decide which of the loss boxes to complete if you’ve made a loss from the partnership or there’s a partnership loss brought forward from a previous year from relevant UK activity.

7.14 Class 4 National Insurance contributions

Most non-residents are exempt from Class 4 National Insurance contributions, so put ‘X’ in box 26 and leave boxes 25 and 27 blank.

7.15 FEU2 tax

Your share should be entered in box 79.

7.16 Next steps

When you’ve completed the Partnership (full) pages of your tax return, consider whether other supplementary pages are needed. If you identify any UK source income or capital gains not previously returned from your reading of the guides, you should refer back to section 6.62 and 6.63 of RDR1: residence, domicile and the remittance basis to see if the relevant item is liable to UK tax. If it is see Self Assessment forms and helpsheets. You should fill in any supplementary pages before you go back to page TR 2 of your tax return.

If no more supplementary pages are needed you will only have to complete question 4 and question 8 on page TR 2 of your tax return before proceeding to the reliefs/allowances sections.

The ‘Residence, remittance basis etc notes’ will also help you to decide whether allowances are due to you. They do not, however, explain which of the reliefs are not available to non-residents or are only available in certain circumstances.

You should complete the remaining questions on your tax return as appropriate.

If you want to calculate your own tax, you will need the ‘Tax calculation summary’ pages and ‘notes’. Include UK withholding tax in box A236 on the working sheet.

8. Helpsheets available

The helpsheets to guide non-resident entertainers and sportspersons are:

• Helpsheet 222 How to calculate your taxable profits
• Helpsheet 227 Losses
• Helpsheet 380 Partnerships: foreign aspects

9. Contact

For more information about online forms, phone numbers and addresses contact Self Assessment: general enquiries.