End of cash in hand for gigs?

[TimR]

[quote name='Al Krow' timestamp='1500134758' post='3335854']


The 5% figure you mention is interesting as its often used by HMRC themselves when considering whether something is material or not and for me is a "sign post" that this may be more than a hobby.

So if your music [i]profits[/i] (after deducting all relevant costs) are regularly 5% or more of your total income (whether this is employed or self employed income doesn't matter), I would agree you should think about getting some proper advice and think about whether you are doing your music commercially with a view to a profit, or it is just a successful hobby.

And remember even if you're doing this commercially you're allowed to deduct a whole bunch of costs in establishing whether it is actually profitable, including your bass, amps and pedals, agents' fees, studio hire costs etc.

There is obviously a grey area where something transitions from being a hobby into a commercial venture and at this margin its important to look at individual facts and circumstances.
[/quote]

£50 a week is 5% of £1000. If you're earning less than £1k a week and/or making more than £50 . You're going to have to keep a lot of recipts and books in order to explain why you shouldn't pay tax.

[kev b]

Every so often a story like this hits the media, its been plumbers, market stallholders, part time car traders, ebay sellers and now the gig economy.

HMRC gave up on extracting tax from weekend band members decades ago as so few actually made a profit after expenses, it wasnt worth their time chasing musos when there were other richer seams to be mined.

Even when they did a big publicity effort to frighten black market tradesmen into declaring income they did not have the manpower to do the job properly instead hoping people would become spooked and register themselves. Lack of resources means that little effort is actually expended finding and investigating all the Dellboy types.

I learned this from a friend who works for HMRC and a relative who is a chartered accountant.