Business Guide for Leisure and Entertainment
Our specialist team has many years’ experience of advising individuals and businesses in the leisure and entertainment industry. Our expertise can help you to make the most of your venture, while also freeing up valuable time, allowing you to concentrate on running your business.
In the face of the challenges imposed by increasing global business competition and ever-changing regulations, it is essential to seek sound advice on putting in place an efficient tax and financial planning strategy. This guide outlines some of the key areas affecting the leisure and entertainment industry. For expert advice on your own individual circumstances please contact the Tuchbands team.
Accounting and record-keeping
Keeping accurate financial records is essential, not only in order to comply with your legal liabilities, but also to ensure that you are properly equipped to make the best business decisions.
In the leisure and entertainment sector, running the accounts and keeping the appropriate records can represent something of a challenge, especially in relation to managing events and accounting for income from different revenue streams, such as royalty payments and overseas income.
Royalty income and payments
It is important to have in place a robust system which enables you to account for royalties. Any royalty agreement should set out the rights and responsibilities of each party involved, together with a clause detailing the timing of any payments, and how such payments are calculated.
The calculation of royalty income is broadly based on the number of units sold, the base price and the royalty rate. However, complications can arise, for example where the royalty rate is subject to variations depending on the type or country of sale.
Dealing with advances and royalties payable schedules, preparing statutory financial statements, and managing payments and expenditure related to royalties and copyright can be a complex and onerous task. We can deal with these issues on your behalf, while ensuring that all royalty payments are accurate and compliant. Please contact a member of the Tuchbands team for further advice and assistance.
Income originating from outside the UK is taxable. Exactly how you are taxed will depend on whether you are classed as being permanently resident in the UK.
Individuals who are resident or ordinarily resident in the UK must pay tax on their worldwide income and gains. However, individuals who are domiciled abroad or not ordinarily resident in the UK can normally choose between paying tax in the UK on all of their UK and foreign income and gains or paying UK tax only on the amount of foreign income and gains brought to the UK. A possible additional payment of £50,000 can apply where the second option is chosen, so careful planning is essential.
The rules are complex, and certain allowances and exemptions may apply – we can advise you on making the right choices to suit your individual circumstances.
In the early years of a business operating as a sole trader or partnership may be an attractive arrangement. As time progresses circumstances are likely to change and you may want to consider incorporating your business.
A company is a completely separate legal entity subject to two main areas of regulation – tax and company law. Operating through a company can have a number of benefits, including:
- the limitation of individual liability
- increased credibility
- reliefs and greater scope for extracting profits tax-efficiently
- allowing succession
Forming a limited company also has a number of tax and legal implications, and companies must comply with more formalities, which include filing accounts and annual returns with Companies House.
We can advise you on the best trading structure for your particular business, and can assist you at every step of the formation process, so please contact us for further information and assistance.
Subsistence expenses allow you to claim for expenses incurred while travelling on allowable business journeys. Broadly, employers can make subsistence payments free of tax and national insurance contributions. Travel expenses can be claimed for the full cost of travel where attendance is necessary in order for the performance of duties (commuting to a normal place of work is not included).
Dealing with expense payments, such as travel and subsistence costs, can be a time-consuming procedure. We can manage your expense claims on your behalf allowing you to concentrate on running your commercial enterprise.
This is just an overview of some of the areas where we can assist you. We can provide specialist advice that is specifically tailored to your needs, relieving the administrative burden while also helping to minimise your tax bill and maximise your income.
Find out more about our fees