Accounts
FEU returns for foreign entertainers in London
Withholding tax and FEU1 returns for payments to foreign entertainers and sportspeople.
What is it
What is the FEU and the foreign entertainers withholding tax?
The Foreign Entertainers Unit (FEU) is the part of HMRC that deals with tax on payments to non-UK resident entertainers and sportspeople for appearances or performances in the UK. Anyone who pays them, such as a promoter, venue, festival or agent, must usually withhold tax at the basic rate of Income Tax and pay it to HMRC, even when payment goes through a third party.
Key rules
- No withholding is needed if total payments to the performer in the tax year do not exceed the Personal Allowance; otherwise tax is deducted from the first payment.
- Expenses paid and benefits provided must be grossed up and taxed, unless HMRC agrees a reduced tax payment application.
- Payments are reported each quarter on form FEU1, due with the tax within 14 days of each quarter end (14 July, 14 October, 14 January and 19 April).
- The performer receives an FEU2 certificate showing the tax withheld, which they can use against their UK tax bill.
Who we help
Who needs FEU support?
If you pay overseas performers or athletes for UK events, you must withhold and report the tax correctly.
Promoters, venues and festivals
Withholding, FEU1 returns and FEU2 certificates for every non-resident performer.
Agents and management companies
Support with middleman arrangements and third-party payments.
Sports events and clubs
Appearance fees, prize money and expenses treated correctly.
What’s included
What our FEU service includes
Registration with the FEU
Contacting HMRC’s Foreign Entertainers Unit and registering you before payments are made.
Withholding tax calculations
Tax calculated at the basic rate on fees, with expenses and benefits grossed up correctly.
Reduced tax payment applications
Applications to HMRC to reduce the tax withheld where the performer’s allowable expenses justify it.
Quarterly FEU1 returns and payment
Accurate returns and payments filed within 14 days of each quarter end.
FEU2 certificates and HMRC queries
Certificates issued to performers and support with any questions from HMRC.
Pricing & transparency
We believe in clear, upfront information so you know exactly what to expect. The cost of FEU support depends on the number of events and performers, how payments are made and whether reduced tax applications are needed. We provide a transparent quote with no hidden fees.
Price list
Pricing & transparency
We believe in clear, upfront information so you know exactly what to expect. The cost of FEU support depends on the number of events and performers, how payments are made and whether reduced tax applications are needed. We provide a transparent quote with no hidden fees.
Services
Related services
Payroll & pension
Accurate payroll processing and pension management.
Income tax – self assessments
Preparation and submission of personal income tax returns.
Corporation tax
Accurate calculation and filing of corporation tax.
FAQ
FEU and foreign entertainers: frequently asked questions
Who has to withhold tax from foreign entertainers?
Anyone who pays a non-UK resident entertainer or sportsperson for an appearance or performance in the UK, such as a promoter, venue, festival organiser or agent, must normally withhold tax and pay it to HMRC.
How much tax must be withheld?
Tax is generally withheld at the basic rate of Income Tax on the payment, excluding VAT. A different rate can only be used if HMRC has authorised it.
Is there a threshold below which no tax is withheld?
Yes. You do not need to withhold tax if the total paid to the performer in the tax year does not exceed the Personal Allowance. If you know payments will go over it, deduct tax from the first payment.
When are FEU1 returns due?
The FEU1 return and payment are due within 14 days of each quarter end: by 14 July, 14 October, 14 January and 19 April. All payments to non-resident performers must be shown, including those where no tax was withheld.
Can the amount of tax withheld be reduced?
Yes. You can make a reduced tax payment application to HMRC, usually based on the performer’s allowable expenses, or use an approved middleman arrangement. HMRC must agree this before the payment is made.
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