[quote name='flyfisher' timestamp='1392154665' post='2365495']
That raises a thought . . . . if you're a gigging musician but never make any money, so effective are running at a loss if you consider gear costs etc, can you claim that loss against the tax you pay on your other job?
After all, if you were, say, a builder and did one job at a profit and another one at a loss, you'd only pay tax on the net profit of both jobs wouldn't you?
I bet HMRC have already thought of that one though.
[/quote]
Indeed they have.
As I understand it, if you are truly attempting to make a profit from your music, then yes you are entitled to offset a loss against the income from your other job. If you are running your music business as a hobby and making a loss year on year, but with no real expectation of making a profit, then no you can't. This is my position, and I explicitly state it on my tax return each year.
There is a note about this in the guidance that HMRC provide, but I can't be arsed to look it up right now as I've been drinking Veterano and coke...