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VAT on website services

Whether to charge VAT for music website

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I have a colleague who has almost finished developing a website that introduces part-time/developing musiscians to industry professionals. The website allows a basic music track to be uploaded and the client chooses from a roster of guitarists/keyboard players/singers etc to play on the track. My colleague then produces the finished result so that a professional production is the achieved. The musicians get a cut of the fee.

My question is, once the business reached the VAT turnover limit, is the service provided one that attracts VAT at 20%? If the musicians involved are VAT-registered will they in turn have to invoice my colleague for their fee + VAT?

Replies (8)

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By paul.benny
20th Jun 2019 22:00

Your friend should visit gov.uk and follow the links to Business and self-employed. There is a reasonably straightforward beginners guide to VAT that should answer most of his questions.

S/he may find it best to hire an accountant who will also be able assist with the income tax.

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By Accountant A
21st Jun 2019 13:28

I have a friend who make his living giving professional accounting and tax advice.

My question is, why is a music website worth paying for but professional advice isn't?

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Replying to Accountant A:
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By vasdis
21st Jun 2019 13:42

Accountant A wrote:

I have a friend who make his living giving professional accounting and tax advice.

My question is, why is a music website worth paying for but professional advice isn't?


He is actually about to engage a professional accountant. I suggested he finds one with knowledge and experience of the music industry. Thought about asking on this forum, but after your reply I will suggest he tries a music forum where he has a chance of a friendly and useful response...
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Replying to vasdis:
By Tim Vane
21st Jun 2019 13:52

vasdis wrote:

Accountant A wrote:

I have a friend who make his living giving professional accounting and tax advice.

My question is, why is a music website worth paying for but professional advice isn't?

He is actually about to engage a professional accountant. I suggested he finds one with knowledge and experience of the music industry. Thought about asking on this forum, but after your reply I will suggest he tries a music forum where he has a chance of a friendly and useful response...

Useful? Maybe. I doubt it.

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Replying to vasdis:
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By johnhemming
21st Jun 2019 14:04

Not that many musicians are VAT registered. That is because the limit for being required to register for vat is a turnover of £85,000. It is really quite difficult to earn enough as a self-employed musician to hit that threshold.

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Replying to vasdis:
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By Accountant A
21st Jun 2019 15:15

vasdis wrote:

I will suggest he tries a music forum where he has a chance of a friendly and useful response...

Excellent idea! I understand there are many talented musician VAT experts. Good luck!

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Replying to Accountant A:
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By johnhemming
21st Jun 2019 16:33

Accountant A wrote:

Excellent idea! I understand there are many talented musician VAT experts. Good luck!


Oddly enough I am expecting to get more income this year as a musician than from VAT MTD services (because I am not charging for my MTD services).
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By Vile Nortin Naipaan
21st Jun 2019 13:50

No. There's a specific VAT exemption that covers this.

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