Expenses and Deductions for Musicians
Band DNCE photographed by Henry Dean, www.HenryDean.co.uk
One of the first steps that we will take when looking at your accounts is ensuring that you are claiming absolutely every expense you are eligible to as a musician.
MUSICIANS HAVE A NUMBER OF TAX DEDUCTIONS THAT ARE UNIQUE TO ANY OTHER INDUSTRY.
Below we have put together a list of some of the expense you are entitled to as a musician.
CLOTHING
Clothing can be an extremely useful expense to claim on your tax return. As a musician you almost definitely spend some of your income on work-related clothing, whether it be clothing for auditions, shoots or rehearsals.
Clothing is definitely one of the more obvious expenses to claim. However for a smooth and painless tax-filing season every year, it is vital that you are aware of your entitlements when claiming this expense. Many musicians are subject to penalties and hold-backs due to over claiming.
USE OF HOME AS AN OFFICE
Use of home as an office is an expense that all too often missed out by musicians. If you use your home to apply for auditions, rehearse or any other work-related uses you are entitled to claim this expense.
You are able to claim a percentage of your household bills for your use of home as an office.
TRAVEL TICKETS
Part of the nature of being a musician is constantly performing and practicing at different locations. All travel that is work-related is claimable against tax. Therefore flights, train-tickets and bus-rides to photography shoots are claimable.
It is important to note that if your travel was partly personal-related, i.e. 5 days of your travel were taken as holiday, you must apportion the expense.
Work-related petrol and other motor costs are also claimable.
EQUIPMENT
Perhaps on of the most obvious expenses to claim for a musician is work-related equipment i.e. your instrument or microphone! This expense can, however, be stretched much further. For example, the equipment need to maintain your instrument.
Make sure you are identifying all work-related expenses on equipment. Equipment is defined as items that you intend to use for a prolonged period. Your do not include this in your business expenses but instead in an AIA (Annual Investment Allowance), which works to reduce the tax you pay.