The short version: An LP10 letter (also called a Lorimer letter) is permission from HMRC that lets your short term employers pay you without deducting tax. It’s useful if you regularly do brief gigs that would normally be PAYE.
Why would you need one?
Some freelancers work lots of short jobs, maybe just a few days each. Without an LP10, each employer might deduct emergency tax, leaving you overtaxed all year and waiting for a refund. With an LP10, you can be paid gross and handle your own tax through Self Assessment.
Who typically uses them?
People in industries with lots of short engagements. TV and film crew, session musicians, actors, photographers. Anyone doing regular work lasting 10 days or less per job.
How do you get one?
Apply to HMRC with evidence of your working pattern. They need to see that you regularly do multiple short term jobs for different clients. If approved, you get a letter you can show to employers confirming you should be paid gross.
Does it change your tax obligations?
No. You still owe the same tax. You’re just paying it yourself through Self Assessment rather than having it deducted at source. You need to be disciplined about setting money aside.
Think an LP10 might suit your situation? Ask us and we’ll help you apply.
