Burrows’ tax victory saves actors VAT on work outside EU

Published Tuesday 13 November 2007 at 17:00 by Alistair Smith

Saffron Burrows has won a landmark VAT case against customs officials, who had claimed the performer owed more than £18,000 in unpaid tax on work she had undertaken outside the EU.

The appeal victory will see the theatre and film actress, alongside seven other performers, refunded a total of more than £150,000 by Her Majesty’s Revenue and Customs.

According to Equity, which helped represent the actors, if the appeal had been lost it would have meant VAT being charged on all UK VAT-registered actors working outside the EU - leading to a total bill of millions of pounds.

Union legal officer Martin Kenny commented: “This was a crucially important decision for Equity members and we’re delighted to have won a comprehensive victory. That the judgement found in favour in all respects fully justifies our decision to fight this case.”

The judgement also dismissed the claim by HMRC that acting on film was not a cultural, artistic or entertainment activity and that a VAT exemption should only be made on live performances. It also found that ‘acting services’ are provided by an actor at the point of performance, not where they are based for tax purposes.

Burrows is most famous for her film work, including Enigma and Troy, but has also appeared on stage at the National and Old Vic theatres.