Setting Up Your Business as an Artist

If you earn money from music — streaming income, gig fees, merchandise sales, sync fees, or anything else — you are running a business, and you need to treat it like one. In the UK, the first step is registering as self-employed with HMRC. This is free, takes ten minutes online, and means you are legally set up to receive income and file a tax return. You need to register by 5 October following the end of your first tax year of trading.

Keep records of everything. Every expense related to your music is potentially tax-deductible: equipment, software subscriptions, travel to gigs, studio hire, marketing costs, website hosting, and professional services like legal or accounting fees. Use a simple spreadsheet or an app like FreeAgent, Xero, or even just a dedicated bank account to separate your music income and expenses from your personal finances. This makes filing your tax return dramatically easier.

Understand the financial year and payment deadlines. The UK tax year runs from 6 April to 5 April. You must file your self-assessment tax return by 31 January following the end of the tax year. If you owe tax, it is due by the same date. Set aside approximately 20 to 30 percent of every payment you receive for tax. The most common financial mistake new self-employed artists make is spending all their income and then facing an unexpected tax bill.