If you\u2019re just starting your career as a musician, then it could be beneficial for you to get some basic artist tax advice on how it works within the music industry.<\/p>\n\n\n\n
One of the best places to start when it comes to tax is knowing if you\u2019re classed a sole trader or employed. For most people and artists who work in the industry, the majority will not be in a full-time salaried job.<\/p>\n\n\n<\/div> \n\n
A survey conducted by The Musician\u2019s Union<\/a> found that 94% of musicians work as freelancers for all or only part of their income.<\/p>\n\n <\/div>\n<\/div> \n\n If you\u2019re starting out as a self-employed musician, then it\u2019s vital you understand the ins and outs of Self Assessment<\/a> tax. Likewise, if you\u2019re part of a band then you need to know exactly how much tax you pay as an individual. So, how do you know exactly?<\/p>\n\n\n\n Most musicians can usually be sorted out into one of these three categories:<\/p>\n\n\n\n The lines can blur, but the bottom line is that if you fall into either 2 or 3, then you should be paying tax on your earnings. You\u2019ll be required by law to register with HMRC and complete a Self Assessment tax return at the end of each tax year. After registering, you\u2019ll be given access to an online platform. From here, you can make an annual tax payment for your National Insurance and Income Tax – but only if you\u2019ve earned over the minimum tax allowance threshold<\/a>.<\/p>\n\n\n\n But are things different if you\u2019re part of a band? Well, unless your group is tied together under a contract, label or limited company, then you\u2019ll still count as separate sole traders by HMRC. Each member must file their taxes individually.<\/p>\n\n\n\n As we already mentioned, you pay both National Insurance and income tax through a Self Assessment tax return. If you are earning over \u00a312,570, you owe Class 4 National Insurance contributions alongside income tax.<\/p>\n\n\n<\/div> \n\n \ud83d\udea8<\/span>From 6 April 2024 <\/b>(the 24\/25 tax year onwards),\u00a0Class 2 National Insurance is being scrapped<\/span><\/a>. If you\u2019re under the threshold and pay them voluntarily to qualify for benefits, you\u2019ll still be able to do so.<\/p>\n\n <\/div>\n<\/div> \n\n HMRC will calculate how much income tax<\/a> you need to pay based on the following:<\/p>\n\n\n\n As a self-employed musician you\u2019ll be solely responsible for keeping a record of your earnings. You must also ensure that you pay the correct tax to HMRC based on your income. <\/p>\n\n\n\n Keeping detailed records of your finances and earnings will make filing your Self Assessment tax return much easier, as well as potentially saving you money in the long run. Be aware that if you don\u2019t declare all your earnings, you can land in hot water with HMRC and be liable to pay some hefty fines!<\/p>\n\n\n\n Being self-employed means that you get the benefit of claiming back some costs through expenses. And there are a lot available for musicians<\/a>.<\/p>\n\n\n\nWho should register as self-employed?<\/h2>\n\n\n\n
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What will I pay tax on?<\/h2>\n\n\n\n
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Artist tax advice on expenses<\/h2>\n\n\n\n