{"id":8697,"date":"2020-12-08T11:56:34","date_gmt":"2020-12-08T11:56:34","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=8697"},"modified":"2024-01-18T12:12:11","modified_gmt":"2024-01-18T12:12:11","slug":"how-to-do-a-musician-tax-return","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/self-employed-tax-returns\/performers\/how-to-do-a-musician-tax-return\/","title":{"rendered":"How to do a musician tax return"},"content":{"rendered":"\n

If you\u2019re registered as self-employed and earn money from your music, then you\u2019ll probably have to complete a musician tax return. This type of tax return is called a Self Assessment<\/a>, which must be completed every year, and it requires you to deduct tax yourself from your earnings.<\/p>\n\n\n\n

Completing a tax return may seem confusing and complicated, but it doesn\u2019t have to be! We\u2019ve put together a handy guide on how to complete a tax return if you\u2019re a musician, and everything else you need to know about self-employed tax. <\/p>\n\n\n\n

What is Self Assessment?<\/h2>\n\n\n\n

If you\u2019re paid a wage by an employer, Income Tax<\/a> is usually deducted directly from your wage, pension and savings. However, the way tax is collected is different if you\u2019re a self-employed sole trader. <\/p>\n\n\n\n

Self-employed workers are required to report on how much Income Tax they owe every year through a Self Assessment tax return. Most musicians will be considered sole traders in the eyes of  HMRC, unless they\u2019re part of a band or group that is tied together under a contract, label or limited company.<\/p>\n\n\n<\/div> \n\n

\n
\n

When is the deadline to register for Self Assessment?<\/h2>\n

If you need to register for Self Assessment, the deadline to do so is the 5th October in any given year.<\/p>\n\n <\/div>\n<\/div> \n\n

\n\n\n\n\n

If you\u2019ve recently started working for yourself, then you must register for Self Assessment to let HMRC know that you are self-employed. If you don\u2019t, then you could end up paying a hefty fine as a result. You\u2019ll then need to complete a tax return by 31st January following the tax year<\/a> that you worked in.<\/p>\n\n\n\n

What information do I need to include on my tax return?<\/h2>\n\n\n\n

To put it simply, you need to declare any income you\u2019ve received that tax year, as well as business purchases and expenses. HMRC taxes you on your earnings minus any qualifying expenditure (such as your profit).<\/p>\n\n\n\n

One of the benefits of sorting out your own tax is claiming back some of your costs as expenses. As long as you can prove that it\u2019s a business expense, you can pretty much deduct anything. This includes:<\/p>\n\n\n\n