Accountant for musicians and DJs

Music is a trade once you perform or release with a view to profit. Streaming royalties, PRS and PPL distributions, live fees, sync placements, production work, teaching and merch all form part of the same trading income.

Against it, claim what the music genuinely needs: instruments, controllers and DJ equipment, studio time and production software, mixing and mastering, distribution and promotion, artwork and photography, rehearsal space, and travel to gigs and sessions.

Touring adds its own costs — flights, freight, accommodation, crew, visas, hire and insurance — and these are deductible where the tour belongs to the trade. Keep the itinerary; it evidences the business purpose of each trip far better than receipts alone.

Overseas income is common and often taxed at source. Performance fees in many countries carry withholding tax, and US streaming income can too without the right forms. Keep certificates, complete the relevant treaty forms, and we claim the credit rather than letting the money go.

Advances, sync fees and PRS back-payments arrive in lumps and are usually taxable when received. Setting a reserve from each lump is the single habit that keeps musicians out of trouble in January.

Splits and collaborations should be documented at the time. A split sheet or a simple written agreement decides who declares what, which matters for tax and for the catalogue value later on.

Where releases, touring and teaching all grow together, we look at whether a limited company makes sense — particularly if you employ crew, retain money to fund the next record, or want the catalogue held separately from you personally.

Source: Income Tax rates and allowances (gov.uk) · Self Assessment (gov.uk)