Legal, Financial & Digital Rights

Legal, Financial & Digital Rights

Contracts, NDAs, AI/Digital Rights, Bank Accounts/Trust Funds, Tax Basics, Residuals, Expense Tracking, and Impact on Benefits.

Introduction:

This section breaks down contracts, Non-Disclosure Agreements (NDAs), and the emerging world of AI and digital rights to ensure your child’s image and voice are protected. We also provide a clear roadmap for the financial side: from opening the right bank accounts and understanding tax obligations to tracking residuals and managing how your child’s earnings might interact with family benefits. 

Professional performance involves more than auditions and rehearsals — it also brings contracts, paperwork, finances and decisions about your child’s image, voice and earnings.

This section will help you understand the practical side of professional work, including contracts, confidentiality agreements (NDAs), the growing area of AI and digital rights, and the basics of managing your child’s earnings.

We’ll also explore bank accounts, tax considerations, residuals, expense tracking, and how professional income may interact with family finances or benefits.

The aim is not to turn you into an accountant or lawyer — but to help you ask informed questions, stay organised and protect your child’s interests.

 

The following is some practical information. We would strongly advise you seek your own independent legal and financial advice to ensure you and your child are complying with the latest legislation and financial requirements.

 

Setting Up a Bank Account

Many families choose to have professional earnings paid into an account held in the child’s name or managed specifically for the child’s benefit.

The right arrangement will depend on your child’s age, earnings, family circumstances and financial goals.

LAs may require that a proportion of your child's earnings are set aside for their future as a condition of their licence. This should be discussed with you by your LA officer. You should also seek your own independent financial advice and this should[1] [2] [3]  be reviewed at regular intervals to ensure it complies with current legislation.  

• Choosing an Account: For children under 7, a Trustee account may be the most appropriate (where you manage the money on their behalf). For older children, you may choose to look for an account that offers a debit card to help them learn about money. Many banks offer children’s accounts, and setting one up may be straightforward through your existing bank.
   
• Martin Lewis’s MoneySavingExpert (MSE)  regularly publishes updated information comparing children’s savings accounts, interest rates and account options.
   
• Junior ISAs (JISAs):  is a tax-efficient savings option designed for long-term saving. There are annual contribution limits, and funds are generally locked until the child reaches adulthood. Before opening a JISA, it can be helpful to consider: short-term access needs, long-term savings goals, how much flexibility your family may need. MoneyHelper’s guidance on Junior ISAs provides a useful overview of the pros and cons. MoneyHelper’s Guide to Junior ISAs 
   
• Managing a Trust Fund: Some families explore trust arrangements where money is held and managed for the child’s benefit. For example, in a Bare Trust, funds legally belong to the child, while trustees manage the money until adulthood. Trusts can be useful in some situations but can also involve legal, tax and registration responsibilities. Professional advice may be helpful before setting one up. GOV.UK: Trusts for Children

 

Managing Different Types of Savings

Depending on your child’s earnings and family preferences, some families choose to separate money into different purposes.

For example:

• Everyday / Accessible Funds: Money used for agreed professional expenses, savings goals, equipment, training, travel or spending choices that directly benefit the child.
• Long-Term Savings: Savings set aside for future use, which may be held in products such as Junior ISAs or other longer-term arrangements.

Think carefully about flexibility, access and long-term planning before deciding where earnings are held.

Depending on your child’s earnings, it may be best to have two accounts:

1. A Trustee/Easy-Access Account: For daily professional expenses like travel, headshots, or acting classes or for things the child may like to buy. You can withdraw from this as long as it benefits the child.
2. A Junior ISA: For long-term savings. Remember, money put here cannot be withdrawn for any reason until your child turns 18.

 

Talking to Your Child About Earnings

Professional earnings can raise new questions about money, responsibility and expectations.

A separate resource on talking with children about professional earnings and financial wellbeing will be available soon.
 

Tax Basics

Professional earnings can bring new responsibilities around tax, record keeping and paperwork. Children generally follow the same UK tax rules as adults. This means there is usually a tax-free personal allowance, although thresholds and rules can change over time. Check the latest information on GOV.UK or HMRC guidance for current figure

You may need to seek independent advice from an accountant or financial advisor.

• Child actors are generally considered self employed. You may need to check with the production on a longer engagement if you are on their payroll and tax is being deducted at source. Please discuss with your financial advisor and keep copies of all payslips or remittance advice from agents in a safe place. 
   
• Personal Allowance: For the 2025/26 tax year, a child can earn up to £12,570 before they pay Income Tax.
   
• Self-Assessment: If your child’s total income from professional work is over £1,000 in a tax year, you must register them for Self-Assessment with HMRC.
   
• Keeping Track of Expenses: Good record keeping can save time, reduce stress and help you understand your child’s professional finances. Many families keep receipts and records for costs connected to professional work, which may include items such as: travel and mileage, agent commission, headshots or portfolio costs, training or classes, role-related professional expenses. Allowable expenses depend on HMRC rules and individual circumstances.
   
• Record Keeping: Keep a simple log with columns for: Date, Job Name, Gross Fee, Agent Commission, Expenses, and Net Total Received.
  • Template here
  • A folder on your computer with all PAYE slips and/or remittance advice
     
• Requirements depend on earnings levels, income sources and individual circumstances, so it is worth checking the latest HMRC guidance or seeking advice if you are unsure.

Understanding Contracts & Licensing

• The Agency Contract:Your agency contract is the agreement between your family and your child’s agent. Things you may want to check include:
  • Representation terms (for example, whether the agreement is exclusive or “sole representation”)
  • Commission arrangements
  • Notice periods and how either party can end the agreement
  • any additional terms, expectations or fees
     
• If anything is unclear, ask questions before signing.
  • Commission rates vary by sector and agreement. Agents usually take a percentage of professional earnings, but families should understand clearly what commission does — and does not — apply to.
     
• The Job/Booking Contract: A job contract relates to a specific piece of work. These agreements will usually cover:
  • dates and schedules
  • fees and payment arrangements
  • usage or rights (where relevant)
  • travel or accommodation arrangements
  • cancellation terms
     
• If you have questions or concerns, speak to your agent or seek clarification before agreeing to the booking.
   
• NDAs (Non-Disclosure Agreements): Some productions ask performers and families to sign an NDA (Non-Disclosure Agreement). An NDA is a confidentiality agreement. It may limit what you can share publicly about a project, including social media posts, photos, storylines or behind-the-scenes information. These agreements should be taken seriously. Make sure you understand what can and cannot be shared before posting online or discussing the project publicly.  There is useful information about NDAs in this Backstage article. As a parent you may also be required to sign your own NDA if you are accompanying your child.
   
• Working Hours: UK child performance regulations place limits on working hours, breaks and performance time according to age and licensing conditions. Rules can vary depending on age, sector and licence arrangements, so always refer to:
  • your child’s licence conditions
  • production guidance
  • current NNCEE information
    • More information on the NNCEE website here.

Working hours for child performers are governed by UK regulations and licensing conditions. The figures below are a simplified guide — always check your child’s specific licence conditions and sector requirements.

Age Group	Max Time at Venue	Max Performing Time	Earliest/Latest Times (NB: Night work requires a special licence)
0–4 Years	5 hours	2 hours	7am – 10pm
5–8 Years	8 hours	3 hours	7am – 11pm
9+ Years	9.5 hours	5 hours	7am – 11pm

Night work or work outside standard hours may require additional permissions or licensing arrangements.
 

Understanding the Time Limits

• Time at Venue: This usually begins when your child arrives at the venue or set — including time spent in hair, makeup, costume, waiting areas or rehearsals — and ends when they leave.
   
• Performing Time: This refers to the time your child spends actively performing, for example on stage, in rehearsal, recording or in front of the camera.
   
• Travel Time: Travel from home to the venue is not usually counted as working time. However, travel required during the working day (for example, between filming locations) may count within working arrangements.

Buyouts, Residuals and Royalties

Understanding how performers are paid can feel confusing at first — particularly when payments continue months or even years after a project finishes.

• Payment: Professional payments usually move through your child’s agent. In many cases:
  • the production pays the agent
  • the agent deducts agreed commission
  • the remaining payment is transferred to you or your child’s account
     
• Agents should provide clear paperwork showing:
  • the total fee
  • commission deducted
  • expenses or additional payments (where applicable)
  • the final amount paid
  • The date the money was received to the agency and the date it was paid to the child
     
• Buyouts: Buyouts are common in commercials, advertising and some digital work. A buyout is a one-off payment giving the production or brand the right to use the work for an agreed period, platform or territory (for example: UK television and online use for 12 months).
   
• Residuals vs Royalties: These terms are related but not identical.
  • Residuals are typically additional payments linked to repeats, rebroadcasts or continued use of a production.
  • Royalties may involve payments linked to sales, licensing or ongoing commercial use, depending on the agreement and sector.
     
• Some payments may arrive long after the original job has ended. 
   
• Late Payments:  Payment timelines vary between productions and sectors. If a payment is delayed, speak with your agent first — they will usually manage payment queries, paperwork and follow-up. In some circumstances, legal protections and statutory rights relating to late commercial payments may apply.
  • Payment must legally be paid from the agent to the child within 10 calendar days
     
• Impact on Benefits: Professional earnings can sometimes interact with family finances or benefit entitlements. The effect will depend on:
  • the type of benefit
  • who receives the income
  • how earnings are structured
  • individual family circumstances
     
• Some benefits may be unaffected, while others may require income reporting or further checks.
   
• If you are unsure, check current guidance or seek advice from MoneyHelper Universal Credit Guide, GOV.UK or a qualified adviser. 

 

Digital Rights and AI

• AI Clauses: Some contracts may ask for the right to use your child’s voice or image to create "synthetic" (AI) content. You have a right to say ‘no’.
  • If you’re interested in this there was coverage in the Guardian about a recent protest from Equity members.
     
• Protection: Equity’s AI Campaign explains how to protect your child’s digital likeness. Always ask your agent to limit these rights and avoid “in perpetuity” (forever) clauses.
   
• Self-Generated Content: If your child creates their own monetised content, this income is taxed in the same way as professional acting work. New guidelines are currently being drawn up about this and we will update this section soon. There is useful information about this at the Advertising Standards Agency and resources here about influencers’ guide to advertising. There is also a useful toolkit here from the Child Influencer Project.
   
• Social Media & Real-Time Safety Even if you have permission to post a photo from a set or theatre, you must be careful with Geotagging.
   
•  No "Live" Locations: Never tag the specific studio, theatre, or filming location while your child is still there. This creates a physical safeguarding risk by revealing your child’s exact location to the public.
   
• The 24-Hour Rule: Wait until you have left the venue or, ideally, until the project has wrapped before tagging locations or sharing behind-the-scenes content.
   
• Check the Background: Before posting, ensure there are no call sheets, scripts, or building passes visible in the background, as these often contain private contact details or confidential project info.