As specialist accountants to musicians our aim is first and foremost to make sure that you are claiming all the eligible expenses, so that you can lower your taxes and avoid unnecessary penalties! Musicians have many tax deductions that are unique to any other industry.
Below we have broken down some of the expenses and deductions you are entitled to as a musician.
I’m a musician. What are my claimable expenses?
Expenses that are wholly and exclusively for the purpose of your trade are regarded as an allowable expense on your tax return on your tax return. Please note: Some expenses can be for dual purposes. Therefore a certain percentage of this dual-purpose expense can be claimed as a business expense.
Below is a list of expenses that can be claimed as an expense as long as they relate to your business:
· Accountancy and other professional fees
· Administrative costs
o Other office costs
· Agents and Managers fees/commission
o Sheet music
o Theatre tickets
o Cinema tickets
· Clothing- is allowable if is specifically and exclusively for work. A self-employed person cannot claim a wardrobe of everyday clothing. However, clothing worn for a gig is claimable as a business expense.
· Cosmetic Surgery- The surgery must have taken place for the purpose of business only. You will need a letter from an applicable person, such as an agent, to confirm that this was truly a business expense for the expense to be allowable.
· Costume and props- This includes repairs, laundry and cleaning
· Use of home costs- The home cost expenses incurred due to work- such as practicing or holding meeting are all claimable. The expenses must be apportioned appropriately.
o Council tax
o Water rates
o Mortgage interest/rent
· Website costs
o Musicians Union
o Other organisations that relate to your business
· Maintenance of instruments and insurance
· Make up and hairdressing costs that you incurred solely for work
· Photographic sittings and reproductions
· Professional publications
· Start up costs
· Telephone, mobile and internet
· Travelling expenses to interviews, auditions and training courses
o Car, van, motorcycle and bicycle
· Travelling and subsistence on tour
· Tuition and coaching
· Capital expenditure- items that are used for a long period of time e.g., a laptop.