HMRC recognises two types of worker, "Employed" and "Self-Employed," and most crew fall into the second. Within that, there are three set-ups you'll come across — see our Ltd company, sole trader or PAYE article for the fuller picture, including where IR35 fits in.

Many crew work as PAYE and sole trader on alternate jobs in the same year — keep track of which part of your income was which, since it's only the sole trader portion that needs a tax return.

The Government has worked with Bectu and other industry organisations to pin down which crew roles can be paid as a sole trader. For film and TV, these tend to be the more senior and specialist roles, while junior roles are more commonly PAYE.

If your turnover (what you invoice for) is under £1,000 in a tax year, you don't need to register as a sole trader at all. Above that, you must register and submit tax returns, even if you've also worked PAYE on other jobs.

David's list of self-employed roles →  ·  The Government's list →  ·  Register as a sole trader →

• Sole traders. Your personal tax return, for the previous tax year, is due by 31 January. Two "payments on account" towards the following year's bill are also due, in January and July. Once Making Tax Digital applies to you (see below), you'll file financial updates every three months on top of this.
• Limited companies. Your accountant will advise on your specific dates, but broadly: your Company Tax Return and Corporation Tax payment, and your accounts to Companies House, both run on deadlines tied to your company's year-end.
• VAT-registered. Sole traders and Ltd companies only — a return and payment every three months. You only have to register once you invoice for more than £90,000 in any 12-month period; below that, it's voluntary.

It's worth seeking recommendations from others in similar situations — other freelancers or small businesses — to find an affordable, experienced accountant.

Your tax return tells HMRC two things: your turnover (the total you invoiced for over the year), and your operating costs (what you spent on software, kit and so on to do your job). From those two figures, HMRC works out your profit, and taxes you on that.

"Making Tax Digital" is a change to the record-keeping process you use to track turnover and costs — in short, the Government wants you using specific software for this rather than a shoebox of receipts (see below for more).

Claiming expenses: Government guidance →  ·  Expenses if you're self-employed →

A limited company gives you legal separation between yourself and the business — "Limited" means limited liability, so if things go wrong, it's the company that's affected, not everything you personally own. Some productions will also insist on paying you as a Ltd company specifically, to rule out any risk that you'd later claim employee rights.

As a rough rule of thumb, if a sole trader's profit goes above roughly £50,000–£60,000 a year, an accountant may suggest it becomes more tax-efficient to go Ltd. Below that, staying a sole trader is usually the simpler, cheaper option financially. As the owner of a Ltd company, you become a director: the production pays your company, and you pay yourself through a mix of salary and dividends. Dividend tax has risen in recent years, which has made that decision more complex than it used to be, so this is one worth running past an accountant rather than deciding alone.

See our Ltd company, sole trader or PAYE article for how this interacts with IR35 — the rules that decide whether a production is even allowed to pay you as a Ltd company in the first place.

Starting 6 April 2026, sole traders with turnover over £50,000 are required to use authorised cloud-based software for record-keeping, reporting turnover and costs every three months instead of once a year. The threshold is set to widen each year after, so before long most sole traders will be included — see our Ltd company, sole trader or PAYE article for the full phase-in timetable.

This doesn't apply to Ltd companies or to any PAYE income — only sole trader self-employment (and property) income.

There are dozens of software options competing for your attention, with free and subscription options alike. Among HMRC's authorised programmes are FreeAgent, Sage, QuickBooks and Xero, though there are many others. Some have an app for photographing receipts on the go, and some can link to your business bank account and recognise payments automatically.

Government Making Tax Digital guidance →  ·  Check if you need to comply →  ·  Submission dates →

David Thomas Media's course materials page has a set of help sheets covering this session in more depth: types of business and why people go Ltd, tax and National Insurance, record-keeping for PAYE and sole trader separately, and savings and pensions.

David's course materials →  ·  David's Making Tax Digital page →

David also offers advice directly by email: info@davidthomasmedia.com. Keep an eye on our social media and emails — we run more sessions with David from time to time.