My Tax Advisor

Not all of your income comes neatly packaged with a payslip.

As a musician, money might come from lots of different places:

🎵 Gig and performance fees
🎻 Session work
🎓 Teaching
🎧 Royalties
🎼 Arranging or composing
💿 Merch or music sales
🎤 Dep work and other freelance engagements

Depending on your circumstances, income from these sources may need to be included when you're working out your taxable income; even if the work was occasional, you were paid directly into your bank account, or there was no payslip involved.

The important thing is to keep a record of what you've earned, where it came from and any relevant expenses.

A little organisation throughout the year can make life considerably easier when it's time to deal with your tax return.

Save this as your reminder: no payslip doesn't automatically mean no tax admin.

September is shaping up to be a busy month for Musicians’ Tax Advisor; and we’re looking forward to it!

We’ll be taking part in a session with the ISM, talking tax with musicians and those working across the profession.

We’re also delighted to be involved in a Tax Planning event for Media, Entertainment & Sports Stars, bringing our specialist tax experience to a slightly wider stage.

Two very different events, but both centred around something we care a great deal about: making tax a little more understandable for people whose careers and income don’t always fit neatly into the usual boxes.

Looking forward to a busy September!

You fly abroad, play the gig, get paid and come home.

Simple enough.

But where does the tax fit in?

If you're a UK-based musician performing overseas, the country you're performing in may have the right to tax some or all of the income you earn there.

In some countries, tax may even be deducted from your fee before you're paid. This is often referred to as withholding tax.

That doesn't necessarily mean you'll end up paying tax twice.

The UK has double taxation agreements with many countries, and depending on the circumstances, you may be able to claim relief in the UK for foreign tax you've already paid.

The important bit? 👇

🌍 Keep details of where and when you performed
💷 Record the full fee and what you actually received
🧾 Keep any paperwork showing foreign tax deducted
🎵 Don't assume an overseas gig doesn't belong in your UK tax records

International performance income can get complicated quickly, particularly if you're touring across several countries.

So if you're unsure how a foreign gig should be treated, it's worth getting advice based on your individual circumstances.

Going abroad for the gig doesn't necessarily mean leaving your UK tax obligations at home.

Your first Making Tax Digital quarterly update is done. 🎉

So… what happens now?

First: you don't need to wait until the next deadline to think about it again.

If Q1 involved a last-minute hunt for receipts, scrolling through bank transactions or trying to remember what that payment from three months ago was for, now is the perfect time to make Q2 a little easier.

Between now and your next quarterly update:

🎵 Keep recording your income as you go
🧾 Save and categorise your expenses
🎻 Keep track of gig, teaching, session and other freelance income
🚗 Record relevant business journeys while they're still fresh in your mind
💻 Keep your digital records up to date

The goal for Q2?

Less searching. Less remembering. Less last-minute admin.

Your future self will thank you.

At some point, many self-employed musicians start asking the same question:

"Should I set up a limited company?"

The honest answer is... it depends.

A limited company can offer benefits in the right circumstances, but it's not automatically the best option just because your income has increased or someone told you it's "more tax efficient."

Before making the switch, it's worth considering things like:
🎵 How you earn your income (performing, teaching, royalties, session work, etc.)
📈 How much you're earning and your future plans
📋 The additional admin and reporting requirements
💷 Whether the potential benefits outweigh the extra responsibilities

Every musician's situation is different, which is why the right structure for one person may not be the right fit for another.

If you're wondering whether it's time to incorporate, take advice before making the leap. A little planning now can save a lot of time, money and hassle later.

💬 Have you ever wondered whether a limited company is right for you?

One of the simplest habits you can build as a self-employed musician is to create a dedicated tax pot.

When a payment lands in your account, it's easy to think, "Great, I've been paid!" But remember, not all of that money is yours to spend.

Getting into the habit of moving a percentage into a separate savings account every time you're paid means you're building your tax fund little by little, rather than facing a nasty surprise when your bill arrives.

It doesn't have to be complicated. The important thing is to be consistent.

A few small transfers throughout the year can make a huge difference to your peace of mind.

Are you already using a tax pot, or is it something you've been meaning to start?

Nobody picks up a guitar thinking, "I can't wait to organise my receipts."

Most bands start with a shared passion, a few rehearsals and maybe a WhatsApp group to organise gigs. The paperwork usually comes later... if at all.

But good record keeping isn't about making music less creative. It's about giving your band the best chance to succeed.

A few simple habits; keeping receipts, recording income, tracking expenses; can save hours of stress when it's time to prepare your accounts or tax return. Even if your band is only earning a small amount right now, starting early makes life much easier as things grow.

If you're wondering where to begin, we've put together a straightforward guide explaining the records every UK band should be keeping.

https://vist.ly/5e7f2

For years, most musicians only had to think about tax once a year.

Now, for those within MTD for Income Tax, HMRC expects updates throughout the year.

This first deadline is a reminder that tax reporting is changing, and staying organised has never been more important.

Whether you've already submitted or you're still getting to grips with the new system, understanding how MTD works will save you time (and stress) in the months ahead.

Don't forget about our dedicated Making Tax Digital Hub with guides, videos and resources to help musicians navigate the changes. https://vist.ly/5dwga

HMRC is consulting on proposed changes to the timing of Income Tax payments; and if you're self-employed, a landlord or complete a Self Assessment tax return, this is one you'll want to be aware of.

The proposals don't change how much tax you pay, but they could change when you pay it. For many people, especially those with irregular or seasonal income, that timing could make a significant difference.

🗓️ The consultation closes on 4 August, so there's still time to have your say (but be quick!)

In our latest blog, we've broken down the proposals in plain English, explained who could be affected and included details of how you can respond to HMRC.

Read the blog here:
https://vist.ly/5dcv5

Have you submitted your response yet?