Should/do Function Musicians pay taxes?

musicman2011

Are singers, bands, one man bands etc obliged to pay taxes on the €200 cash or whatever they earn on a Saturday night or is it tax free for artists?

Miguel_Sanchez

Moved to Bands & Musicians.

Owen

Unfortunately, it's taxable. The last band I was in was lucky enough to have management pay taxes for us - but I've heard of plenty of bands getting hit by the Revenue recently. They're checking bands FB Pages and Websites for gigging dates and turning up.

rcaz

PaintDoctor wrote: »

Unfortunately, it's taxable. The last band I was in was lucky enough to have management pay taxes for us - but I've heard of plenty of bands getting hit by the Revenue recently. They're checking bands FB Pages and Websites for gigging dates and turning up.

Haha, no way. Right down to gigs where it's something like, me and my mates decide to write some songs and rent out a cheap bar for a night and charge a fiver in?

SouthTippBass

PaintDoctor wrote: »

Unfortunately, it's taxable. The last band I was in was lucky enough to have management pay taxes for us - but I've heard of plenty of bands getting hit by the Revenue recently. They're checking bands FB Pages and Websites for gigging dates and turning up.

Wow, that really sucks Dosent the tax-man get enough already? I have an image of the tax collector from Disneys Robin Hood coming round to the pub taxing everybody in the room ha ha! :pac:

Owen

A lot of venues now are paying by cheque too, which makes an instant papertrail.

Fandango

Very rare if it does happen. I havent heard of any bands getting taxed. Unless its a band that plays a good few nights a week for a few grand a gig, its not worth their while sending someone out or bothering with the paperwork.

Owen

It happens more often than you think. I know 3 bands in Cork who've been visited, recently. It does really only affect the bands regularly gigging, but it's something to be aware of all the same.

drumdrum

Should musicians pay taxes?

I think that like most professions we probably should IF we earn over a set amount. Like any job really.
However, seeing as 99% of musicians make feck all from their music I dont really think that this applies to most musicians anyways. Most musicians I know work during the day and do the music by night. Its the lucky ones that get to make a career out of it, and often these bands are making alot less than you think.

stingray75

El Pr0n wrote: »

Haha, no way. Right down to gigs where it's something like, me and my mates decide to write some songs and rent out a cheap bar for a night and charge a fiver in?

actually you will be delighted to know that at least you don't have to collect and pay VAT on the tickets...they're exempt...

Forest Master

PaintDoctor wrote: »

They're checking bands FB Pages and Websites for gigging dates and turning up.

Bullsh*t.

puremule

Is there anyone out there that has first hand experience of this. I'm constantly hearing " I know a fella whose brother was in a band with another fella and his sister got a call from the tax man etc etc"????

Drummerboy08

puremule wrote: »

Is there anyone out there that has first hand experience of this. I'm constantly hearing " I know a fella whose brother was in a band with another fella and his sister got a call from the tax man etc etc"????

I've never experienced it, or heard of it happening to any of the guys I know but it wouldn't surprise me.

I had heard that Revenue were looking for ads in papers for teachers advertising grinds and ringing the numbers, so it wouldnt surprise me if they were doing this either.

If they did arrive up just say that your getting paid via a few pints....Most barmen will go along with that too, especially if you're a regular act in the venue.

Forest Master

Drummerboy08 wrote: »

I had heard that...

:rolleyes: more hearsay...

Boldfish

Here's some first hand experience then. Straight from the horse's mouth.

I'm in a band and I pay tax on my earnings. At many venues these days, you will be asked for your PPS number in order to be paid. If this happens, make sure you register for tax because if you don't, the tax man will not be long tracking you down. Your PPS number identifies you immediately when the venue does their tax returns.

But, don't cry, its very easy and in most cases you won't pay anything if you do a little filing.

Like most musicians, I have a day job and I make very little by playing gigs, which is nothing more than a hobby really. In my day job, I pay PAYE, which is all done by the company and I don't have to worry about anything. It all gets done and I just receive a pay cheque at the end of the month.

For the band income however, you have to pay your own tax because its 'supplemental income' and you are technically self-employed. Your day job employer doesn't need to know about it, so don't worry about that.

You need to register for tax by filling out a TR1 form. Then what you do is keep all receipts for everything related to your band. You will also need to keep door receipts from the venue (i.e. how many people paid in that night).

You are liable for tax on your total pay at the end of the year i.e. day job money + band money.

BUT! Remember, you only pay tax on net profit. So if your band, like most bands, makes very little, at the end of the year, make sure your expenses equal your profit and you don't owe any additional tax.

Here's a small example: -

You played a gig. 100 people paid €5 in. Keep the door receipt to prove this. Your gross profit for the night is €500.

The venue charges you €100 + VAT = €121 and issues a receipt, which you also keep.

Your net profit for the night is €379. This is what you will be taxed on.

Next step then, keep the receipt for the petrol for your trip to the venue €50
Keep the receipt for the rehearsal studio you used to practice for the gig €75
Keep the receipt for the guitar you bought to play the gig €250
Keep the receipt for the pack of strings you bought for your guitar €4.

BOOM! Your expenses are now €379. This totally wipes out the money you made on the night.

Your net profit is now €0. And you can't be taxed on €0.

This might seem like a simplistic example but it really is this simple. All you have to do is stretch this out over the year. Keep the receipts from the venues showing the money you make and keep the receipts for all your expenses. Bands make so little these days that it is very likely that your total net profit for the year (venue income minus expenses) will be €0 or less and you will therefore not pay any tax on your band income.

The only thing you have to be strict about is doing your tax return at the end of the year (i.e. submitting this information to revenue, information on how can be easily googled) and KEEP RECEIPTS, in case you are audited.