Taxes For Freelance Animators

 

 
This short video offers a short introductory guide to taxes for freelance animators.  It was recorded for our students at Buckinghamshire New University, studying for their MA in 3D Animation, but it applies equally to all our students at Animation Apprentice. BNU can't offer our students formal legal or tax advice, but we can explain the basic rules of freelancing.  Freelancing need not be complicated. You don't need a license to offer your services to clients and, as long as you pay your taxes to HMRC at the end of the tax year, doing small freelance animation jobs can be a great way to get started in the animation industry. 

UK Animation Tax Relief Increased to 39%

One less-reported aspect of the Chancellor's Spring budget here in the UK was an increase in the tax relief granted by HMRC for UK animation to a generous 39%. 

This appears to be in response to lobbying by the UK creative industries, who have long argued that the tax credit encourages UK animation production, and nurtures domestic talent and creativity.

Here at Animation Apprentice we are delighted that the Government is supporting the UK animation industry, and we welcome the news, which will surely boost UK animation production, and create a jobs pipeline for animation graduates in the UK. 

The Perils of Freelancing in Los Angeles - The Taxes You Never Knew You Didn't Owe

LA City Hall. Wikimedia

Any animator who lives and works in Los Angeles needs to be aware of  the laws relating to freelancers in the City of LA.  These local rules are not well known and very easy to fall foul of, as I know myself from personal experience.

In a nutshell, if you do any freelance work at all while you live and work in LA, make sure you register with City Hall.  If you don't, scary penalties will follow.  Here's how the system works.

Sole Trader or Limited Company - Which is Best?

As a freelance animator, considering whether to set up a Limited Company or become a Sole Trader can be a tricky decision. There are many things to think about when identifying which route would be right for you.  So, what is the difference, and which route is best?

Sole Trading
Becoming a Sole Trader (self-employed) is the simplest way to run a small business, especially if you’re just starting out. Many contractors and freelancers - including animators - operate as Sole Traders at the beginning of their careers. As a Sole Trader you will be operating your business as a self-employed individual.

How to Get The Taxman to Finance Your Independent Animated Feature Film

Anyone who has tried to raise money for a film project knows that this can be the hardest part of the whole enterprise. Yes, you may have a great idea, but finding the money needed to bring it to life is no easy task. For anyone in the UK trying to finance an independent film (and every self-respecting animator has a story in them somewhere) - a working knowledge of how the system works is pretty much essential. Sure, you will need a producer to help you out, but knowledge is power, so you need to get educated. One of the best ways to finance your film is called EIS - and it is an excellent way to get the taxman to help pay for your project.

A Freelancer Animator's Guide to Taxes and Self-Employment

At Animation Apprentice we train digital animation artists with practical, real-world skills which are aimed squarely at a successful career in the industry. And we like to practice what we preach, by bringing in small freelance jobs to help our students get live experience on client projects.

One of the questions we often get asked by students is - do I have to pay tax on my freelance income? The answer of course is yes. The bad news is, the tax code in the UK runs to 10,000 pages, and there is no human being who knows the whole code. But every freelance artist needs to know at least the basics. Below is a short introduction to how the system works, from a self-employed artist's perspective. It is by no means complete, and it is no substitute for paying a qualified accountant to give you proper advice (which is highly recommended), but it should explain some of the basic rules of tax survival for freelancers, and get you pointed in the right direction.