Artists and theatre companies who staged work at the major Edinburgh fringe venue Summerhall this year are missing thousands of pounds because the company that runs the venue is locked in dispute with HMRC. The artists, who have not received their box office takings from the summer’s festival, are waiting for payouts of up to £15,000 each. The company that runs Summerhall is accused by HMRC of failing to pay £500,000 in corporation tax, which it denies. Summerhall featured a programme of 108 shows at the 2024 fringe, most involving multiple collaborators. Artists received a statement from Robert McDowell, director of Summerhall Management Ltd, at the start of October saying Summerhall’s accounts had been frozen and “we will not be able to pay you the sums belonging to you”. “It feels like I’m going through a divorce while I’m paying off the wedding,” said Laura Horton, who staged her play Lynn Faces in Summerhall’s main hall in August and is owed about £15,000. “Our future activity has been really stunted,” said Nick Cassenbaum, one of the artists behind Revenge: After the Levoyah, which won the Fringe First award. He is owed about £12,500. “We’ve got all these opportunities, people wanting us to tour the show, and we can’t afford to do any of it. The ramifications are not just for us as producers, it’s for actors and artists we employ: it’s a whole ecosystem that has had the rug pulled.” The uncertainty is causing distress for artists, who rely on box office takings to fund future tours or, often, replace personal savings invested in taking a show to Edinburgh. Writer-performer Anna Morris and her producers the Thelmas are in the same position – they are owed around £11,000. “Despite having a hit show at Edinburgh this year, our future plans for a London run and tour are now very much at risk because of the financial uncertainty,” said producer Madelaine Moore. Artists also expressed anger and disappointment about the lack of clarity and support available. Summerhall was established by McDowell 12 years ago, and has become known as a hub of acclaimed and experimental arts and theatre. HMRC presented a winding-up petition against Summerhall Management Ltd to Edinburgh sheriff court on 16 September, asking that liquidators be appointed. Summerhall Management Ltd is challenging the petition and says it “believes there to be no corporation tax due”. A court hearing extended the case to 29 November. Artists and Summerhall staff said they fear the case could be extended again, delaying a resolution – and their money. “This has just added to the general anxiety about being in this industry,” Horton said. “I had a day last week where I had a panic attack.” James Rowland, who has staged work at Summerhall at six fringes and is owed about £15,000, said: “I’m having mental health problems and I know people who are dealing with serious problems as a result of this.” The Fringe Society said it was making mental health support available to affected artists. Some artists questioned whether Summerhall Management knew action from HMRC was a possibility. “I question how long they’ve known about this, and I question the ethics of doing the festival this year,” Cassenbaum said. McDowell said: “We had no reason to believe that we would not be able to pay out fringe box office moneys as usual this year.” Tickets for Summerhall shows were sold by the venue but also through the Fringe Society. McDowell told the Observer that due to a caveat lodged by his company in the Scottish courts, the notification of HMRC’s action “allowed us time to contact the Fringe Society to ask them to hold on to the artists’ money”. Asked by artists why the Fringe Society could not pay them directly, the organisation issued a statement saying they had been advised that holding the money “offers the highest likelihood of success of protecting your funds”. The society declined to comment further. Summerhall staff have had working hours reduced and contracts paused. “There’s a sense of exhaustion and general sadness,” said one insider. Morris said: “I want the public to know because there’s people who enjoyed my show and think the money is coming to me.” McDowell said in a statement: “We understand the effect this is having on the artists, and wider ecosystem … Summerhall Management and the team are concentrating on bringing a resolution to this current situation.” The future of Summerhall had already come under question after news this year that the building’s owners – Isle of Man-based Oesselmann Estate Limited, McDowell’s family trust, had decided to sell the premises. The Stage and the Scotsman reported last week that Edinburgh-based property developer AMA Homes is the preferred bidder. Rowland said he was saddened by the experience. “The community [at Summerhall] is the reason why I found it sustainable doing the fringe year after year … but the venue has not looked after people’s money.” This article was amended on 2 November 2024. The initial figure said up to £16,000 was owed, but this did not factor in venue fees.