Tax at the basic rate may need to be withheld on performance fees and expenses paid to non-UK-resident performers (entertainers and sportsmen or sportswomen) for appearances including at charity fundraising events.

Tax need not be deducted if total payments made to the performer or an associate of the performer do not exceed £1,000 in any tax year.

Tax may be deducted at a rate less than the basic rate if the charity and the performer make a written agreement with HMRC to account for tax on an amount equal to the performer’s actual liability, i.e. after allowing for deductible expenses. Such an agreement must be made at least 30 days before the payment is made. Tax accounted for in this way is not processed through the PAYE system but dealt with separately with HMRC’s specialist unit.

For more information, see HMRC’s Foreign Entertainer tax rules.