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Top Tips When Getting Started as a Musician

Getting started as a freelance musician in the UK is exciting, but the admin side can feel overwhelming. The good news is that getting a few simple foundations in place early on can save you huge amounts of time, stress, and money later.


Here are the most important tax and financial steps to take when you’re starting out, based on the guidance we share with new musicians every day.


A violin player in front of a group of people outside


  1. Understand the Difference Between Self Assessment & Self Employment for a Musician


When you work as a freelance musician, you must report your income through Self Assessment, HMRC’s system for gathering all your financial information each year.


Your tax return might include:

  • PAYE employment

  • Music self-employment

  • Rental income

  • Bank interest or dividends

  • Student loan repayments


Self employment is just one part of your overall tax return; the section where you report your musician income and expenses.



  1. Use Cash Basis to Keep Things Simple


HMRC defaults most musicians to cash basis accounting, meaning you record income and expenses when the money actually hits your bank account.


This makes it much easier to organise your records, and it’s ideal for freelancers who are just getting started.



  1. Open a Dedicated Bank Account for Your Music Work


One of the biggest early mistakes musicians make is mixing personal and business finances.


A separate account helps you:

  • Track income quickly

  • Keep all expenses visible

  • Prepare for future changes like Making Tax Digital

  • Avoid stressing at tax time


Even though you’re not required to have a business account, having a dedicated bank space truly future-proofs you.



  1. Know What Counts as Allowable Expenses


If you spend money wholly and exclusively for your work as a musician, it’s likely allowable. Common examples include:

  • Travel to gigs

  • Accommodation

  • Meals between sessions

  • Lessons, coaching or CPD

  • Kit, instruments, reeds, sheet music

  • Website hosting & advertising

  • PR, printing & marketing

  • Music subscription services (e.g., Spotify or Apple Music, often partly or fully allowable)

  • Mobile phone (apportioned for business use)


The key question is:

“Can I justify this to HMRC as a genuine business cost?”

If yes, you’re on the right track.



  1. Track Your Income Accurately

Your total income, also called turnover, is reported before expenses.


Go through your bank statements, select everything related to your music work, and total it up carefully.


If you have a mixture of work types (teaching, performing, recording), include them all as long as they are part of your musician trade.



  1. Mileage vs. Capital Allowances for Car Use


If you drive for your music work, you can choose between two methods:

a) Simplified mileage: 45p per mile for the first 10,000 miles, then 25p

b) Business percentage of car costs: MOT, insurance, servicing, petrol


Mileage is usually simplest and safest for beginners, especially if filing your own return. Capital allowances tend to be more technical.



  1. Claim Working-From-Home Costs Where Relevant


You can claim a portion of home costs if you rehearse, teach, practice, or do admin from home.


Two methods exist:

  • Simplified flat-rate deductions

  • Percentage apportionment based on hours worked at home


Most musicians get a better result by calculating a percentage, but both are valid.



  1. If in Doubt, Use HMRC’s “White Space”


If something feels unclear; a grant, a borderline expense, or a one-off payment; add a short explanation in the “any other information” box on your tax return. HMRC appreciates transparency, and it protects you if any questions arise later.



  1. Build Good Habits Early for Making Tax Digital


Even if your income is currently low, the UK is moving gradually toward MTD-ITSA, where self-employed individuals will report quarterly. Building simple habits now will make that shift much easier when it arrives.



Conclusion


Starting out as a musician is a huge step, and getting your finances organised early is one of the best gifts you can give yourself. With the right systems, you can keep more of what you earn, avoid unexpected tax bills, and spend more time focusing on creating music.


If you’d like expert support tailored to musicians, we are here to help. Contact Musicians’ Tax Advisor to get clarity on your next steps; whether you're just starting out or levelling up your career.



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