Tax allowances (UK)

Subject: Tax allowances
From: Herge
Date: 02 Jun 05 - 02:59 PM

Any tips for my tax return? I am a part time musician who earns about £4000 above my normal saleried job per year gigging. What can I claim as a tax allowance - strings - mileage - clothing - CD's?

Subject: RE: Tax allowances (UK)
From: alanabit
Date: 02 Jun 05 - 03:17 PM

I was a Tax Officer some thirty years ago, but most of what I know - if not all of it - is out of date. You would need someone who deals with Schedule D - usually the tax schedule for self employed people -to advise you. The rules regarding expenses can differ for those which are allowed under Schedule E. I think that the rules about travelling expenses,in particular, are more liberal for musicians and the like. All the things you mentioned sound reasonable enough to me. I would certainly claim for them in Germany, where I have been a working musician for years. I think Liz the Squeak can give you better information about the UK than I can though.

Subject: RE: Tax allowances (UK)
From: Richard Bridge
Date: 02 Jun 05 - 03:24 PM

Get an accountant. PM me for a recommendation

Subject: RE: Tax allowances (UK)
From: treewind
Date: 02 Jun 05 - 03:28 PM

Get an accountant and his charges can be allowed against tax too. I use John Heydon, (as do many folkies, he's one himself so understands what we do) and he can get your loss (you *will* show a loss) offset against the tax on your day job. That's as long as the revenue accept that you are running a business and not doing it for a hobby. The appearance of accountant's charges helps with

Mileage at 40p/mile (up to some limit, then it's 25p) is likely to be your biggest declarable expense. Everything else you mention, probably, a certain amount for subsistence, and a proportion of your home running costs (heat, electricity etc) because you are using it as an office for business admin. Stationery, postage, magazine subscriptions, materials for promotional literature, phone calls, internet costs... anything relevant to the business.

You can include mileage for trips where you don't do paid gigs, if it can be considered promotional - e.g. travelling to a folk club to do a floor spot with view to getting booked. And the cost of getting in at the door.

You can get tax relief on capital expenditure too, but not all in the year you spend it - effectively it's as if the cost was spread over four years typically. You really need to get advice on how to present that properly to the tax man, and on everything else - don't trust me!

Anahata

Subject: RE: Tax allowances (UK)
From: Herge
Date: 02 Jun 05 - 03:56 PM

Cheers folks - any one know a good accountant in Northern Ireland?, or can the one above give advice etc over the net? I've kept pretty good records of income, mileage and outgoings (but reciepts I aint so good with!). The taxman has taken my returns in the past with no real questions, but I am sure I'm not claiming all I'm entitled to.

Subject: RE: Tax allowances (UK)
From: GUEST,John from Tarneybackle
Date: 03 Jun 05 - 05:15 AM

An accountant is a good idea. I tried to do our returns for a couple of years and found that it was a minefield. The tax office will try to help, but often you need to speak to three different departments.

An additional suggestion is to join the musicians union. They provide tax guidance and a host of other services. Having joined a couple of years ago, I would not be without their support.



Regards


John

Subject: RE: Tax allowances (UK)
From: AggieD
Date: 03 Jun 05 - 06:48 AM

Herge pm me & I'm sure I will be able to help, we run a tax consultancy/accountancy & will be able to do business over the net

Angela

Subject: RE: Tax allowances (UK)
From: GUEST,padgett
Date: 04 Jun 05 - 03:39 AM

No comments about my qualifications no pack drill

Keep ALL bills receipts, your self employmnet income appears to be substantial most of above all very good advice

However, use of car claim flat rate a bit iffy ~ S/e appears to be main source and not Sch E (PAYE)

Make of car, value new, when bought for how mich how long used for business (depreciation), mileage business/private, petrol oil tax etc may be needed claimed as capital allowances

Take professional advice (see above all good advice) !!