9. Running a theatre company in the UK: how does it actually work?

I’ve spoken in previous blogs about the creative impulses behind my own decision to set up a theatre company, but one of the areas I still think we don’t talk openly enough about is the practical elements of what that actually entails. Things that can look kind of easy when you’re on the other side of having done them (and don’t have to worry about them so much) but can also feel really overwhelming and tricky when they are completely new to you. So, in the hope of being helpful if you’re thinking about starting a company but aren’t sure what it would involve – or are just interested in the process – I thought I’d go through some of the practical decisions and steps you’ll probably find yourself thinking about.

Registering the Company

The first step is deciding on the structure of your theatre company. In the UK, there are several options:

• Limited Company – You’ll need to register with Companies House and follow corporate governance rules.
• Charitable Incorporated Organisation (CIO) – A great option if you plan on applying for charitable funding.
• Community Interest Company (CIC) – Designed for social enterprises, this structure allows for some commercial activity while keeping a social mission at its core.
• Sole Trader or Partnership – Easier to set up but offers fewer protections and funding opportunities.

Personally, I opted for a Limited Company because it offered a model that felt most approachable and quick to get going. Whilst I wouldn’t change that decision, I’ve since learned a lot more about CICs, and for the right company – if you have charitable plans and principles, there are some real strengths to this model, allowing you to apply for grants while maintaining some flexibility in generating income.

Managing Finances: The Accounts You Need to Keep

One of the biggest things everyone thinks about (and worries about) is the financial management involved in setting up a company, and of course, there are lots of elements to keep on top of, including:

• Income Records – Every ticket sale, grant, sponsorship, and donation must be logged.
• Expense Records – Rent for rehearsal space, costume purchases, marketing materials, and wages all need to be documented.
• Invoices and Receipts – Keep copies of all invoices sent and received, plus receipts for any purchases.
• Payroll (if applicable) – If you hire actors or production staff, you must process payroll correctly and ensure tax and National Insurance contributions are made. I’d argue this probably isn’t something you need to worry too much at first if you’re a small independent company, as you’ll probably be paying people through bank transfer when they invoice you
• Tax and VAT Returns – Depending on your turnover, you may need to register for VAT and submit returns to HMRC. Similarly, this isn’t something that you are likely to need to worry about at the start of the process, as you only have to register for VAT when you’re bringing in over £90,000
• Annual Accounts & Reporting – If registered as a limited company or CIC, you must file annual accounts with Companies House and possibly submit a confirmation statement. You also have to pay £13 each year to re-confirm your company! For me, I find Annual Accounts not dissimilar from submitting a Self Assessment Tax Return each year – as long as you keep all the records above, it won’t cause you too many problems.

Theatre Tax Relief (TTR)

One significant financial benefit available to theatre companies in the UK is Theatre Tax Relief (TTR). This government incentive provides tax relief on the costs associated with producing theatrical productions. If eligible, a company can claim back a percentage of core production costs, which can be a vital financial boost.

• Eligibility: The production must be intended for live performance, with at least 25% of core costs spent in the UK.
• Relief Rate: Currently, relief can be claimed at a rate of up to 45% on qualifying expenditure.
• How to Apply: Claims are made via Corporation Tax returns, so it’s crucial to keep detailed financial records of production costs.

TTR can be a game-changer for new theatre companies, helping to cover upfront expenses and reinvest in future projects. It is ABSOLUTELY something that you will want to learn more about asap!

Applying for Funding

Securing financial backing is a mix of grant applications, crowdfunding, and sponsorship deals. Some key options include:

• Arts Council England Grants – usually looking at Project Grants once you’re established as a company, the big decision is often between an under £30k application or an over £30k application (if your project is pushing towards £30k, there are often less applications in the over £30k bracket…)
• Local Council Funding – increasingly tricky in the current climate, but always worth looking to see if your local council, or places where you are making work, have schemes in place
• Rural Touring – if this is part of your practice, there are specific funding routes available to support this work
• Charitable Grants – as above, great to look at if your work sits alongside the charitable sector and you have CIC status
• Corporate Sponsorships – look for opportunities to approach local businesses who may sponsor productions in exchange for advertising opportunities, often especially useful for marketing materials (online, print)
• Ticket Sales – obviously always a backbone of where we want to be striving to get our money from, and again feeds back into getting that great marketing material and a strong company voice in place
• Crowdfunding – Platforms like Kickstarter or Patreon can be useful for raising funds for specific projects – I’ve used these platforms and one thing to bear in mind is the ethics around asking friends, family and colleagues for money. Not that that’s wrong or bad, but it’s just something to be aware of, and (in my opinion) perhaps used sparingly across your career as it’s not a fully sustainable way of funding your company or projects

Theatre Green Book

A more recent addition to the portfolio of things you need to think about as a company. Sustainability is so vital in the arts sector, and the Theatre Green Book guidelines are something you’ll want to familiarise yourself with. This industry-wide initiative promotes environmentally responsible practices in theatre production, with levels you can reach (Basic, Intermediate, Advanced) according to a percentage scale of how “sustainable” each production you develop is. Areas of analysis include:

• Sustainable Set & Costume Design: Encouraging reuse and recycling of materials.
• Energy Efficiency: Using LED lighting and reducing energy consumption in performance spaces.
• Transport & Touring Considerations: Prioritising eco-friendly transportation options for touring productions.
• Waste Reduction: Minimising waste generated by productions and ensuring proper recycling.

Adopting Theatre Green Book principles is ethically important for me, and has been built into the principles of how I run my company – and it’s undoubtedly something that also makes productions more cost-effective in the long run through the processes of reusing props/costumes/set from show to show, and sharing resources with other local companies.

Marketing and Audience Development

As mentioned above, this is probably one of the elements you are going to spend a lot of your time focusing on when running a company. It’s a reminder of how important it is to really carve out your niche and creative space in the industry before launching into the practical steps above, so that when you’re all set up as a company and starting some of the marketing steps below, you know what your key messages are as a company.

• Social Media Presence – Regular updates on Instagram, X, and Facebook help build engagement.
• Website and Email List – Having an online hub where people can learn about your work and buy tickets is crucial.
• Press Releases & Networking – Building relationships with theatre critics and local media helps generate buzz.
• Partnerships – Collaborating with venues, schools, and community groups expands your reach.

So, is it worth it?

Sure, starting a company means having to get organised with the administrative side of things. But speaking from my experience, whilst these can seem daunting, a lot of the tasks involved are things that once you’ve done them the first time, you then have the knowledge of how that system works to take forward. Submitting Annual Returns for example might be a bit overwhelming at first, but get a spreadsheet going, or an app, and then you’ve laid the groundwork for a template that will work year after year. Same with Theatre Green Book (who are also great, with free templates available via their website for you to fill out on a show-by-show basis).

And ultimately, even when the tasks involved are more logistical or administrative, it’s all informed by the vision of your company – the creative heart of what you want to create and what you want to say, so you can always tether it back to that. Even on the days you’re drowning in receipts.