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A screenwriter, as with many writers, is often self-employed. This means that paying your taxes is your own responsibility and is not done for you by an employer – in this case, the production you’re working on. In some cases, if a screenwriter is employed by a regular film/TV production (e.g. a soap), they may pay taxes via Pay As You Earn (PAYE) which is done by an employer.
For the most part though, this isn’t the case.
As a self-employed screenwriter, there are a few things to consider when it comes to tax.
When you go self-employed, you have to declare your earnings to HMRC so that they can calculate how much tax you owe them each tax year. To declare this, you have to do what’s known as a self assessment.
Make sure that you register for self assessment online by 5th October to pay your tax bill for the tax year that has just ended.
You will only have to do a tax return if you earn over a certain amount in each tax year.
A self-employed screenwriter pays a tax bill made up of Income Tax and National Insurance.
The rate of Income tax that you have to pay in the 2024/25 tax year is based on the following table:
| Income | Tax rate | |
| Up to £12,570 | 0% | Personal allowance |
| £12,571 to £50,270 | 20% | Basic rate |
| £50,270 to £125,140 | 40% | Higher rate |
| over £125,141 | 45% | Additional rate |
You will only have to pay income tax when you earn more than £12,570 in a tax year.
National insurance was previously taxable from a lower threshold, but this changed. Now, you start paying it from earning £12,570 per tax year (Class 4).
Self-employed screenwriters pay Class 4 National Insurance.
🚨From 6 April 2024 (the 24/25 tax year onwards), Class 2 National Insurance is being scrapped. If you’re under the threshold and pay them voluntarily to qualify for benefits, you’ll still be able to do so.
At the same time, Class 4 is reducing from 9% to 6%.
As a self-employed screenwriter, you’re not immediately eligible for the Job Seeker’s Allowance – so you may also choose to pay Class 1 National Insurance to qualify. It’s a good backup to have in case of an economic downturn like the COVID pandemic.
In case you’re not already aware, the self-employed workforce can deduct expenses from their earnings. Anything that you spend on your business can be deducted from your gross earnings each year to lower your tax bill.
Here are some examples of what can be deducted:
You can technically expense anything that you’ve spent on your business so make sure that you’re as organised as possible. Start a spreadsheet as soon as you can with all your income and business spending.
Manage your self-employed finances in one place with 10/10 bookkeeping tools. And all for free – forever and always.
Or see our Guides, Calculators or Taxopedia
