Do Musicians Really Need an Accountant? Here’s Why the Answer is Yes

As a musician, your focus is on your sound, your craft, and your creative journey—not spreadsheets and tax returns. But whether you're gigging in local pubs, producing your own albums, or licensing tracks to film and TV, understanding the business side of music is essential to making it in the long run. At Creative & Numbers, we work with musicians across the UK to simplify accounting, tax, and bookkeeping, helping them stay financially sound while doing what they love. In this blog, we break down why hiring an accountant isn’t just for big-name artists—it’s a smart move for any music professional.

The Business Behind the Music

Music is more than a passion—it’s a business. And like any business, it comes with obligations. From self-assessment tax returns to understanding performance royalties and tour expenses, there’s a lot to keep track of.

Whether you're just starting out or have an established following, proper accounting ensures:

• You meet HMRC deadlines and avoid penalties

• You claim all eligible expenses

• You understand your true earnings and costs

• You can plan better for the future

Good accounting for musicians can be the difference between chaos and control.

Self-Employment & Tax: What UK Musicians Need to Know

If you’re earning over £1,000 from your music in a tax year, HMRC considers you self-employed—and that means you need to register for Self Assessment.

Key things to consider:

• Register with HMRC as self-employed once you pass the threshold

• Keep detailed records of income from gigs, streaming, session work, merchandise, and royalties

• File your tax return by 31 January following the end of the tax year

• Pay National Insurance (Class 2 and Class 4) if your profits exceed certain thresholds

You may also want to think about your business structure. While most musicians start out as sole traders, some may benefit from setting up a Limited Company for tax or legal reasons. An accountant for musicians can help you decide what’s best based on your goals and income.

What Can Musicians Claim as Expenses?

Music is expensive—equipment, studio time, travel, marketing, and more. Fortunately, many of these costs can be deducted from your taxable income, as long as they’re directly related to your music business.

Allowable expenses can include:

• Instruments, gear, and maintenance

• Recording and rehearsal studio hire

• Travel for gigs, tours, and music events

• Music promotion and advertising

• Website and streaming platform costs

• Accountant fees for musicians

Keeping clear and consistent records is key to claiming the right expenses—and avoiding trouble with HMRC.

VAT and the Music Industry

If your music business earns over £90,000 in taxable turnover in a 12-month period, you must register for VAT. For musicians, this could include income from gigs, licensing, and merchandise.

While voluntary VAT registration can sometimes be beneficial, especially for reclaiming VAT on big purchases like equipment or tour costs, it also adds more paperwork. A specialist in accounting for musicians can help you determine whether it’s the right move for you.

Grants, Funding & Global Income

If you’re applying for music grants or arts funding, having organised accounts can strengthen your application. Funders often ask for recent financial records, budgets, or proof of income.

Also, if you receive royalties or income from abroad—whether through streaming platforms, international performances, or licensing deals—this can impact your UK tax return. Double taxation rules and foreign income reporting can get tricky, so it’s best to get expert advice.

Why Work With an Accountant for Musicians?

Music is unpredictable. One month you’re booked solid; the next, you’re in the studio. An accountant who understands the ups and downs of the music industry can be a huge asset. Here’s what they bring to the table:

• Help with tax planning and Self Assessment

• Advice on VAT registration and compliance

• Support with grant or funding applications

• Guidance on music income from abroad and how it affects your taxes

• Help choosing between sole trader vs. limited company setup

Most importantly, they free up your time and energy to focus on what really matters—your music.

At Creative & Numbers, we offer tailored accounting for musicians, with jargon-free advice and support that fits around your creative life.

Let Us Handle Your Numbers So You Can Focus on Your Creativity!

Being a musician is a full-time job (and then some). Don’t let tax and accounting stress get in the way of your next masterpiece. Contact Creative & Numbers today and get expert help from accountants who understand the music industry. Reach out now—because your music deserves to be heard, not buried under paperwork.