For some people, making a living as a musician or performer is a mere dream. If you’re lucky enough to turn your dream into a reality, keeping your paperwork in order from the get-go is essential to avoid headaches further on down the line. Filing your taxes is a far cry from the rock and roll lifestyle you may be living, but failing to declare your income is a surefire way to put a premature end to your musical career.
Why Use Dead Simple Accounting?
We’re experts when it comes to accountancy services for musicians. Our director, James, has been the lead guitarist of a band for the last 15 years, and understands the trials and tribulations that many musicians face when it comes to filing their taxes. Whether you’re looking to setup as a freelance musician or form a limited company, we can offer advice on what’s right for you every step of the way on your journey to global stardom.
But don’t just take our word for it, we’re rated 5 stars across Google and Facebook.
What Expenses Can Musicians Claim?
Claiming expenses is one of the most important aspects of accounting for musicians, as it allows you to recoup many of your costs. While this sounds great in principal, you have to ensure that anything you claim for is ‘wholly and exclusively’ for the purpose of your business, otherwise your claim may be denied.
Musicians and creatives are able to expense some very unique costs that you may not have considered, including but not limited to:
- Travel expenses
- As a musician you’ll likely be travelling to gigs, and may incur costs around motoring such as fuel, road tax, insurance and repairs. You may also be able to claim accommodation costs for overnight stays away from home.
- Instrument insurance, repairs, consumables
- Smaller items such as drum sticks and strings may also be claimable costs.
- Promotional costs
- Including but not limited to: flyers, posters, photo sessions etc.
- Rehearsal room/studio/instrument/equipment hire
- Phone bills (if business related)
- Stage clothes
- This can be a bit of a grey area, so be sure to consult an accountant for advice.
- For example sheet music, tab books etc.
- Solicitor’s fees
- For example if you’re having contracts drawn up.
- Music Equipment
- Such as MP3 or CD players, if you can prove their for business purposes, for example if you’re using them to learn music.
- And more..!
In order to claim for these it’s vital that you keep on top of your paperwork, keeping hold of receipts, contracts and invoices. We appreciate it may be tricky to keep hold of receipts, especially after a gig at your local pub, so consider getting a filing cabinet (as well as making digital copies), to help keep everything in order.
You also need to be realistic and tax efficient. It’s highly unlikely you’ll be able to claim on first class train tickers or swanky hotel rooms, so keep this in mind when planning work related trips.
Need Some Further Help?
If you have any further questions or would us to help with your musician tax needs, get in touch with us today.