What is the witholding tax for American musicians for shows they perform in the UK?
Free to read. Create a free profile to ask your own question.
Create a free profile →AI starter answer — please verify with real-world experience. Awaiting trusted contributor review.
American musicians performing in the UK are generally subject to a flat 20% withholding tax on gross income (fees, bonuses, and travel buy-outs) administered by HMRC's Foreign Entertainers Unit (FEU). This applies if the total payment to the performer exceeds the current UK 'small payment' threshold (presently £1,000). While the US-UK Tax Treaty exists, it generally does not exempt entertainers from UK tax if earnings exceed certain thresholds, but it does allow the tax paid in the UK to be claimed as a Foreign Tax Credit on your US IRS return.
- 1.Check if your total UK earnings for the tax year are below the current personal allowance threshold (typically £12,570), which may exempt you from final liability, though withholding may still occur upfront.
- 2.Instruct the UK promoter or venue to withhold the standard 20% Foreign Entertainers Unit (FEU) tax from your gross performance fee if no prior arrangement has been made.
- 3.Apply for a 'Reduced Withholding' through the HMRC Foreign Entertainers Unit if your documented tour expenses (travel, commissions, equipment) significantly reduce your actual profit.
- 4.Collect a FEU certificate (Form FEU4) from every promoter who withholds tax to serve as legal proof of payment for the IRS.
- ×Promoters are legally required to withhold this tax; if they don't, they become liable for it, so expect them to be firm on the deduction.
- ×The 20% is often calculated on gross income, not net profit, unless you have an HMRC-approved simplified reporting agreement in place.
- ×Failure to obtain Form FEU4 will make it extremely difficult to claim the Foreign Tax Credit back in the United States.
If your UK tour net profit is likely to be low, apply for a FEU reduction at least 30 days before the first show. This allows you to pay tax on 'actual profit' rather than a flat percentage of 'gross income'.
Based on AI training data — may not reflect current information.
Community Discussion(0)
Set the record straight
Speak from experience. Specifics > opinions. Other working pros may flag it for a correction — that's the point.
Become a trusted contributor
Working engineer, producer, attorney, or tour manager? Apply for a Verified Contributor badge. Your corrections carry weight, your answers get prioritized, and your profile shows up next to the AI summary.