{"id":20218,"date":"2022-08-15T11:37:22","date_gmt":"2022-08-15T10:37:22","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=20218"},"modified":"2025-11-04T16:03:57","modified_gmt":"2025-11-04T16:03:57","slug":"foreign-entertainers-athletes-pay-withholding-tax","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/high-earner-tax-returns\/foreign-entertainers-athletes-pay-withholding-tax\/","title":{"rendered":"Do foreign entertainers and athletes pay withholding tax?"},"content":{"rendered":"\n<p>Withholding tax = tax evasion, right?<\/p>\n\n\n\n<p>Wrong. Keep reading to learn exactly what it is and whether or not it\u2019s classed as an expense.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">An expense?<\/h2>\n\n\n\n<p>Yep. Listen up.<\/p>\n\n\n\n<p>Did you know that foreign entertainers and athletes (and those who hire them) pay UK tax on performances\/competitions that take place in the UK?<\/p>\n\n\n\n<p>Whether you\u2019re Lady Gaga, the next Rafael Nadal, or simply the person that hires them for a UK-based event, it\u2019s important you know all about a little thing called withholding tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">So what is withholding tax?<\/h2>\n\n\n\n<p>In the UK, if you pay foreign entertainers and\/or sportspersons (who do not live in the UK) for a performance or appearance, you deduct income tax from their payment if the total amount exceeds their <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/personal-allowance\/\" target=\"_blank\" rel=\"noreferrer noopener\">personal tax allowance threshold.<\/a><\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">The <\/span><b>income tax<\/b><span style=\"font-weight: 400;\"> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Income<\/strong><\/td>\n<td><strong>Tax rate<\/strong><\/td>\n<td><strong>Tax band<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to \u00a312,570<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Personal allowance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a312,571 to \u00a350,270<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a350,271 to \u00a3125,140<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Higher rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">over \u00a3125,141<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Additional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p>This is called withholding tax &#8211; a payment on account against the foreign entertainer or athlete\u2019s final UK tax bill. It usually applies to the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/dividends\/\" target=\"_blank\" rel=\"noreferrer noopener\">Dividends<\/a> (if they&#8217;re not paid by a UK company)<\/li>\n\n\n\n<li>Interest<\/li>\n\n\n\n<li>Royalties<\/li>\n<\/ul>\n\n\n\n<p>If you pay the performer\/athlete through a third party, you (the payer) are still responsible for deducting withholding tax. Before you make first payment, you also have to <a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\/contact\/non-uk-resident-entertainers\" target=\"_blank\" rel=\"noreferrer noopener\">contact the Foreign Entertainers Unit<\/a> (FEU) and register for withholding tax.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-nude m-align-left\">\n    <div class=\"b-block-body\">\n        <h2><span style=\"font-weight: 400;\">Withholding tax vs expanded withholding tax<\/span><span style=\"font-weight: 400;\"> \ud83d\udca1<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Ever come across the term \u2018expanded withholding tax\u2019 and wondered whether it\u2019s relevant to you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Expanded withholding tax is a type of tax prescribed on income payments in the Philippines &#8211; not in the UK. So unless you have an income source from the Philippines, then no, this term does not apply to you or the UK definition of withholding tax.<\/span><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Who might qualify for withholding tax?<\/h2>\n\n\n\n<p>The types of entertainers and sports people that should have withholding tax deducted include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Athletes<\/li>\n\n\n\n<li>Actors<\/li>\n\n\n\n<li>Musicians<\/li>\n\n\n\n<li>Dancers<\/li>\n\n\n\n<li>Models<\/li>\n\n\n\n<li>Footballers<\/li>\n\n\n\n<li>Motorcycle riders<\/li>\n\n\n\n<li>Tennis players<\/li>\n\n\n\n<li>Boxers<\/li>\n\n\n\n<li>Singers<\/li>\n\n\n\n<li>Sports pundits<\/li>\n\n\n\n<li>Cricketers<\/li>\n\n\n\n<li>Cyclists (track and road)<\/li>\n\n\n\n<li>TV personalities<\/li>\n\n\n\n<li>Variety entertainers<\/li>\n\n\n\n<li>Darts players<\/li>\n\n\n\n<li>Golfers<\/li>\n\n\n\n<li>Jockeys<\/li>\n\n\n\n<li>Choirs<\/li>\n\n\n\n<li>Guest presenters<\/li>\n\n\n\n<li>Motor racing drivers<\/li>\n<\/ul>\n\n\n\n<p>For entertainers, they may appear individually or with others.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Withholding tax example \ud83d\udc47<\/h2>\n\n\n\n<p>Let\u2019s say you\u2019re a promoter for the music festival Glastonbury. You agree to book the Canadian rapper Drake to perform for a fee of \u00a340,000 (bargain!). Because \u00a340,000 exceeds Drake\u2019s UK personal allowance, you need to withhold the basic rate tax from the payment.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>For most payments over the personal allowance, you (the payer) should deduct tax at the <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/basic-tax-rate\/\" target=\"_blank\" rel=\"noreferrer noopener\">UK basic rate of income tax.<\/a>\u00a0<\/p>\n<cite>HMRC<\/cite><\/blockquote>\n\n\n\n<p>That means that from the agreed \u00a340,000:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You pay \u00a332,000 to Drake<\/li>\n\n\n\n<li>\u00a38,000 (20%) goes to HMRC as withholding tax<\/li>\n<\/ul>\n\n\n\n<p>If you know in advance that you&#8217;ll make more payments to the athlete\/entertainer which exceed the personal allowance, you deduct tax from the first payment &#8211; even if the personal allowance hasn&#8217;t been reached.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When does withholding tax not apply?<\/h2>\n\n\n\n<p>There are a few instances in which you (the payer) do not have to deduct withholding tax. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If the total of all payments you make to the entertainer\/athlete in that tax year do not exceed the personal allowance threshold<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It\u2019s a cancellation fee<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The athlete\/performer is an employee who pays tax through <a href=\"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/should-i-be-paying-paye-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">PAYE<\/a> in the UK<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You pay anyone on the <a href=\"https:\/\/www.gov.uk\/guidance\/pay-tax-on-payments-to-foreign-performers#middleman-scheme\" target=\"_blank\" rel=\"noreferrer noopener\">middleman scheme list<\/a><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You pay other people for supporting services such as venue or equipment hire, ticketing, security or catering<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The payments are made to models at still photo shoots<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You pay catwalk models at an event not open to the public (even if it\u2019s filmed or streamed)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Payments made directly to film directors, cameramen or technicians<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What if the entertainer\/athlete\u2019s UK performance income exceeds \u00a350k?<\/h2>\n\n\n\n<p>If the entertainer or sportsperson has a UK performance income that&#8217;s more than the basic tax rate band (see the table above on income tax rates), withholding tax might not be enough to cover their tax liability. Instead, HMRC might require them to file and complete a self assessment tax return to pay their share of tax, which <a href=\"https:\/\/taxfix.com\/en-uk\/self-assessment-tax-returns\/\" target=\"_blank\" rel=\"noreferrer noopener\">Taxfix<\/a> can help with!<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - what is Self Assessment?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/pMg5p0tJ-z8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Withholding tax = tax evasion, right? Wrong. Keep reading to learn exactly what it is and whether or not it\u2019s classed as an expense. An expense? Yep. Listen up. Did you know that foreign entertainers and athletes (and those who hire them) pay UK tax on performances\/competitions that take place in the UK? Whether you\u2019re [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[463],"tags":[356,424,357],"class_list":["post-20218","post","type-post","status-publish","format-standard","hentry","category-high-earner-tax-returns","tag-expenses","tag-foreign-income","tag-high-earner"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do foreign entertainers and athletes pay withholding tax? &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"Whether you\u2019re Lady Gaga, the next Rafael Nadal, or the person that hires them, it\u2019s important you know all about withholding tax.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/high-earner-tax-returns\/foreign-entertainers-athletes-pay-withholding-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do foreign entertainers and athletes pay withholding tax? 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