Paying Tax as a musician in a cover band

JimiTime

Hi guys. Does anyone know the tax situation in a cover band? Does the band have to be registered as a business under its name etc? Or can it be that each member looks after their own tax affairs? Anyone with any experience or knowledge on this I'd appreciate it.

Specifically, if a 4 piece band gets paid €400, do I only need to worry about the 100 I'm paid? As in, if the tax man comes to me, and I have paid my share, thats all that counts in terms of me?

Rigsby

Have a browse through this, and it might throw up some answers.


http://www.boards.ie/search/submit/?subforums=1&forum=171&query=tax

neverfindaname

Each to their own fortunately/unfortunately...... At one stage, I think I covered everyone's dole for about 2 years with the quote the revenue gave me.......wasn't worth continuing for a finish......

JimiTime

Specifically, if a 4 piece band gets paid €400, do I only need to worry about the 100 I'm paid? As in, if the tax man comes to me, and I have paid my share, thats all that counts in terms of me?

neverfindaname

JimiTime wrote: »

Specifically, if a 4 piece band gets paid €400, do I only need to worry about the 100 I'm paid? As in, if the tax man comes to me, and I have paid my share, thats all that counts in terms of me?

Spot on, your considered to be self employed, worry about your own back. Any questions just ring Revenue, they'll send you out the preliminary forms to fill out......... get ready to donate your balls to them too though

endacl

neverfindaname wrote: »

JimiTime wrote: »

Specifically, if a 4 piece band gets paid €400, do I only need to worry about the 100 I'm paid? As in, if the tax man comes to me, and I have paid my share, thats all that counts in terms of me?

Spot on, your considered to be self employed, worry about your own back. Any questions just ring Revenue, they'll send you out the preliminary forms to fill out......... get ready to donate your balls to them too though

Just keep receipts for EVERYTHING! Nice to have the taxman buying you dinner on a gig. You'll soon find the tax bill diminishing. Get an accountant. He/she should pay for themselves.

slavetothegrind

there is the possibility you may be allowed offset equipment purchases against taxable income

if you gig a lot worth talking to a decent accountant to ensure you are ok.

Have heard of a local musician who was audited and presented with his bookings for the next while!

careful now!

endacl

slavetothegrind wrote: »

there is the possibility you may be allowed offset equipment purchases against taxable income

if you gig a lot worth talking to a decent accountant to ensure you are ok.

Have heard of a local musician who was audited and presented with his bookings for the next while!

careful now!

It's not a possibility. You absolutely can offset equipment, strings, gaffa tape, coffee, lunch, dinner, blank cds, external hard drives, telephone, photocopying, picks, strings, straps, clothes, petrol, rehearsal fees, insurance, portion of rent/mortgage/utilities if you teach from home, instruments, batteries, depreciation on equipment...

The list could go on and on. Get an accountant and keep those receipts...

Grolschevik

endacl wrote: »

It's not a possibility. You absolutely can offset equipment, strings, gaffa tape, coffee, lunch, dinner, blank cds, external hard drives, telephone, photocopying, picks, strings, straps, clothes, petrol, rehearsal fees, insurance, portion of rent/mortgage/utilities if you teach from home, instruments, batteries, depreciation on equipment...

The list could go on and on. Get an accountant and keep those receipts...

Certainly ask an accountant about this. What counts as a legitimate expense and in what circumstances and over what timeframe it can be written off is incredibly complicated.

It's not just a matter off adding up all your receipts at the end of the year and subtracting the total from your income. Just look at the numerous threads in taxation and accountancy for this.

endacl

Grolschevik wrote: »

endacl wrote: »

It's not a possibility. You absolutely can offset equipment, strings, gaffa tape, coffee, lunch, dinner, blank cds, external hard drives, telephone, photocopying, picks, strings, straps, clothes, petrol, rehearsal fees, insurance, portion of rent/mortgage/utilities if you teach from home, instruments, batteries, depreciation on equipment...

The list could go on and on. Get an accountant and keep those receipts...

Certainly ask an accountant about this. What counts as a legitimate expense and in what circumstances and over what timeframe it can be written off is incredibly complicated.

It's not just a matter off adding up all your receipts at the end of the year and subtracting the total from your income. Just look at the numerous threads in taxation and accountancy for this.

All the above were approved by the accountant. The list would be vastly longer but I'm on the phone...

Sligophoto

More expensive items should be regarded as capital costs and would normally be deducted (depreciated) at 15% per annum, that would probably relate to items such as Pa systems , Musical instruments. If any one item is under a €1000 you will probably get away with claiming it against your tax in one go. Talk to an accountant or get advice on the finance/tax forum here on boards.

Kettleson

...bit of a bump here, but still as relevant as ever..

Bookkeepers/Tax Advisors

I hope folk aren't freaked by phrase, "talk to your accountant" "get an accountant" etc.

There are many "bookeepers" and "tax advisors" who will look after your tax return and cost you a fraction of the cost as save you just as much.

Heartland

Very useful thread. Nice one for raising it. Just shows how valuable it can be to get an accountant early on.

Kettleson

Heartland wrote: »

Very useful thread. Nice one for raising it. Just shows how valuable it can be to get an accountant early on.

Or a book-keeper ..... To give you an idea, a few years ago, my book keeper did my tax return and saved me a small fortune. She only charged me €150.

Grolschevik

Kettleson wrote: »

Or a book-keeper ..... To give you an idea, a few years ago, my book keeper did my tax return and saved me a small fortune. She only charged me €150.

As opposed to around €500 PLUS VAT for a basic return done by an accountant.

smcgiff

Kettleson wrote: »

Or a book-keeper ..... To give you an idea, a few years ago, my book keeper did my tax return and saved me a small fortune. She only charged me €150.

Would agree with this, especially for secondary income.

Actually, come to think of it. A cover band is a lot like a book-keeper. They're not quite the real thing, but very often do a decent job.

Kettleson

smcgiff wrote: »

Would agree with this, especially for secondary income.

Actually, come to think of it. A cover band is a lot like a book-keeper. They're not quite the real thing, but very often do a decent job.

Top post! hahahaha!!