Musicians and Self Employment?
Can a musician register as self-employed to offset costs, such as studio time for recording tracks, travel to gigs and general musical expenses (instrument consumables etc) against the tax paid during employment in the same year?
They are currently employed but spend 50% of their time also pursuing a career in music, unfortunatly for them the music isn't paying the bills at the current time so the employment (where PAYE/NI is paid through the employer) is a neccesity.
I understand there are alot of specific rules around musicians and actors and what can and can't be claimed for which I would suggest they visit an accountant about but my query is more general about if this is an allowable reason to register as self-employed?
I actually think that they should be registered anyway as they also write 2 regular magazine articles each month for different publications for which (I think) they are paid cash.
I have read somewhere about music being viewed as a hobby for some people, however I can't seem to find any distinguising rules from HMRC about when they class music as a hobby and when it becomes a profession (the person in question certainly doesn't see it as a hobby, but is this enough?)
Any comments welcome as I would like to advise them on the best way forward and not lead them in to thinking they should when actually they can't.
- Rogue Accountant 2,817 46
- Getting fees, getting harder? 3,534 71
- P60 from HMRC Basic Paye Tools 5,279 19
- HMRC Scam 236 2
- Departments in Sage 50 82 1
- Where has Portia gone? 675 25
- Is it worth being a limited company if already a higher rate taxpayer? 209 2
- HMRC, YouTube, ITTOIA... 318 4
- Capital Gains? 255 2
- Associated disposals - Entrepreneur's relief 100 1
- Partial Exemption relating to a multi academy trust 70 1
- Is it possible to have an excel link to a different dated excel file 446 9
- Taxation of serviced offices 124 2
- AIA - new period 218 1
- Self assessment question 1,156 48
- Major Works Invoice to Rental Property 372 9
- What is the base cost of this asset for CGT? 264 3
- New Client wants an Income Certificate for a Mortgage 854 20
- Dividend Tax Rate 441 8
- Ex Wives Club 544 13
- Services via intermediaries and new HMRC reporting requirements 772
- RTI - duplicate employee record 505
- Pensions Regulator 438
- How hard is it to reduce a code? 394
- Sanzar 296
- Sage Vat return box 2 296
- Digital marketing focus group 275
- How do you do it 263
- Kashflow balance sheet difference 226
- Report old income 226