How to Find the Perfect Accountant for Musicians
Many people get into full-time musical careers for their love of the craft.
Very few get into it to handle their own tax returns.
Here, we will discuss how an accountant can help reduce your costs and make your tax returns quick and easy.
Do You Need to Complete a Self-Assessment Tax Return if You Work in the Music Industry?
If you are employed by a company on a full-time basis, then your tax will be calculated before you get paid each month, and you needn’t worry about a self-assessment tax return.
However, if you do some freelance work on the side or work as a full-time self-employed musician, you are required to submit your yearly income for the HMRC to calculate how much you owe in tax.
The Potential Penalties For Not Paying Your Tax Bill
There are several penalties that can arise from not paying your tax bill as a self-employed musician, each one increasing in severity.
Late payment penalty: The most common penalty you can expect as a musician for not sorting your self-assessment tax return in time is a late payment penalty.
Interest charges: On top of late payment charges, you can also expect to receive bank interest charges on top of your unpaid fees.
Damage to credit score: As a sole trader, an unpaid tax bill can also have a negative impact on your credit score, which will make it harder to secure a personal or business loan in the future.
Collection actions: Keep avoiding your tax return; the HMRC may decide to take your tax avoidance into their own hands, serving you with a collation action, which could mean your assets get seized. It’s hard to book new gigs without any instruments!
Criminal penalties: Finally, if you continue to not pay your tax return, instead attempting to bury your head in your sheet music, your tax evasion may be deemed as criminal, which could incur hefty fines or time in jail.
The Challenges You Face When Completing Your Self-Assessment Tax Return
Trying to get your head around your tax return is very complex, as understanding how much tax you owe can be confusing as a freelance musician. Here are some of the challenges you might face:
- Complex tax regulations
- Record keeping
- Tax liabilities and deductions
- Income sources
How Can A Tax Accountant Help A Musician?
Tax Compliance: Musician tax accountants are experts in tax laws and regulations.
Tax Planning: Tax accountants can develop tax-efficient strategies to minimise your tax liability.
Financial Organisation: Tax accountants can help you maintain organised financial records, making it easier to track income, expenses, and deductions throughout the year.
Audit support: In the event of a tax audit or inquiry by tax authorities, a tax accountant can represent you, providing documentation and explanations to support your tax return and ensure compliance with tax laws.
How AccountantFor Can Help You With Your Tax Returns
Our match-making accountancy services will match you with experienced accountants for musicians to ensure you talk to someone who understands your craft and the costs associated with it.
The best part? It doesn’t cost you a penny.
All you need to do is click here.
Get Matched With a Musician Accountant Now
What Do Others Say About AccountantFor’s Accountancy Services
As a musician, my passion has always been in creating and performing, not crunching numbers or deciphering tax codes. AccountantFor was a lifesaver. They introduced me to an accountant who truly gets the unique financial needs of artists. Now, I can focus on my music, knowing that the financial side of things is in expert hands. With AccountantFor, I’ve found harmony both on stage and in my finances.— Elena M., Independent Singer-Songwriter.
Find Specialist Music Accountants in Five Simple Steps
Tell us about your work: Firstly, we will ask to learn more about your work as a musician
Tell us about your average turnover: Secondly, we will ask for your annual turnover estimation.
Tell us what services you are interested in Once we have your work and turnover, we will ask you to let us know what sort of support you are searching for.
Tell us where you want your accountant to be located: You can choose which country you want your account to be based in.
Tell us your details: Input your name and contact details so that we can send you your unique quote.
Frequently Asked Questions About Tax For Self-Employed Musicians
AccountantFor works with accountants from around the world, including those who understand the rock and roll lifestyle of a musician.
If you have a firm grasp on your business finances, such as travel expenses, other outgoings, and your forms of income, then yes, you can complete your own tax return. However, without using accounting services, you run the risk of missing out on potential tax rebaits, or worse, you risk accidentally committing tax fraud by getting your tax return wrong.
The tax year finished on the 31st of March, and you have until the end of January the next year to pay your return.
As a self-employed musician, you are required to pay national insurance as part of your tax return if you earn a certain amount of money, which the HMRC will calculate based on your return.
Accountants for musicians analyse your incomings and outgoings, such as payments and instrument insurance, to ensure you pay the correct amount of tax at the end of the year. Not a penny too much, or a penny too little.
Musicians Accountancy Services
AccountantFor provides a comprehensive range of accountancy and tax services for musicians through our exclusive network of vetted accountancy talent within the United Kingdom.
– Statutory accounts
– Management accounts
– Financial planning
– Business plan
– Growth modelling
– Tax investigation service
– Capital gains tax
– Tax advice and consultancy
– Company formation
– Registered office address
– Payroll services
– Corporation tax