Invoiced gigs

hotpickups

Well things are looking up since my last post here about gigs. We seem to be getting offered some quite respectable paying gigs now but because they are corporate venues they are all asking to be invoiced. What do you guys do when your band, over time, builds up a considerable sum of payments? Who gets hit with a tax bill or how much can you earn until the taxman wants his share etc? I am concerned that I'll be the one who will be hit with a tax bill as the invoice has my address on it. What can I do to cover myself not to be hit with everyone else's tax bill?

I look forward to your responses

jpfamps

I do plenty of invoiced gigs.

As I'm self employed they go through my self assessment.

One band I play with, the drummer organizes the gigs (!!) and he gets paid directly, and then the individual band members invoice for their fee. Most of this band, including the drummer, are self employed and it goes through the band members' tax returns.

I expect that the "correct" thing to do is submit a self-assessment form with gig income on,as well as any other.

The amount of aggro you get from HMRC will depend on how much money you are turning over. If its a few hundred pounds then I suspect it not, but a few thousand may attract interest.

hotpickups

Hmm I can see that going down like a lead balloon with the band. If we get the gigs we are aiming for then it could be between £8000 - £9000 a year and I don't want to be hit personally with that bill in tax. Of course I can offset expenditure etc to being the profit down I guess. It wouldn't be all my profit though. Why isnt anything simple

John_P

^  they want the gigs but wouldn't be happy invoicing you for the money?    Is this the same group you were talking about who didn't want to help with getting the gigs and were struggling to be available to rehearse/band meetings.     If I'm wrong then ignore it but I'm starting to see a pattern here.   
If you have that amount of bookings then getting people who are willing to send an invoice for their share of the money shouldn't be too hard.

I declare my gig earings (I'm sure I include all of them if you're ready hmrc ;-) )  but the problem sounds like it's declaring just your share - I wouldn't be happy working with people who wanted me to solve their problems.
If it's a gig that needs an invoice, you either take it in turns so you have a split that way, or you invoice and then get an invoice from everyone else so it's clear what your personal take was.

hotpickups

John_P said:

^  they want the gigs but wouldn't be happy invoicing you for the money?    Is this the same group you were talking about who didn't want to help with getting the gigs and were struggling to be available to rehearse/band meetings.     If I'm wrong then ignore it but I'm starting to see a pattern here.   
If you have that amount of bookings then getting people who are willing to send an invoice for their share of the money shouldn't be too hard.

I declare my gig earings (I'm sure I include all of them if you're ready hmrc ;-) )  but the problem sounds like it's declaring just your share - I wouldn't be happy working with people who wanted me to solve their problems.
If it's a gig that needs an invoice, you either take it in turns so you have a split that way, or you invoice and then get an invoice from everyone else so it's clear what your personal take was.

Yep the same but I might be painting a bad picture of them which probably is not that bad I'm going to talk to them about the potential problem with invoicing but I can imagine at this stage that they will only want the cash in their hands so they don't have to declare it. However, someone will have to. I just want to be armed with some facts before suggesting anything. Sharing the invoicing might be a good idea too i.e. invoice address changes from each gig etc

grammar

Get the money in your account then let them invoice you so you're only paying tax on your share, there's probably other ways to prove what your share was. 

If they don't want to declare there own share that's their problem, they can take that chance!

Danny1969

I would spread it around, each member can take a turn invoicing and a accepting payment then all pay your tax according 

If one guy does it all the time and you do a lot of gigs you get get past the VAT threshold and that's a real headache 

hotpickups

LOL the VAT threshold being around £70 grand is gonna be a long way off for us. But thanks

Danny1969;341733" said:

I would spread it around, each member can take a turn invoicing and a accepting payment then all pay your tax according 

If one guy does it all the time and you do a lot of gigs you get get past the VAT threshold and that's a real headache 

David5150

My band does a year each - mostly invoiced through Events UK, and declares it on their own tax return.

hotpickups

Yeah agreed I'm going to have to ask them to invoice me and they can submit their own tax returns. Sorted. 

Thanks for the advice guys

jpfamps

Danny1969 said:

I would spread it around, each member can take a turn invoicing and a accepting payment then all pay your tax according 

If one guy does it all the time and you do a lot of gigs you get get past the VAT threshold and that's a real headache 

You could still arouse the attentions of the VAT man with this approach, as you would to demonstrate that that there was a genuine business reason for invoicing like this, rather than doing this a means to avoid VAT.

Phil_aka_Pip

You should already have a partnership agreement (see the MU) if you're turning over that much. HMRC will probably want to see a copy of it too.

hotpickups

Phil_aka_Pip said:

You should already have a partnership agreement (see the MU) if you're turning over that much. HMRC will probably want to see a copy of it too.

No fear of that. Nice thought to be turning over that amount though

spacecadet

You need to get them to invoice you then pay them via bank transfer. DO NOT pay them cash. You need a paper trail if ever someone comes knocking which if you do well they will. Keep invoices/ bank statements for at least 10 years.

Phil_aka_Pip

hotpickups said:

Phil_aka_Pip said:

You should already have a partnership agreement (see the MU) if you're turning over that much. HMRC will probably want to see a copy of it too.

No fear of that. Nice thought to be turning over that amount though

By that much I meant how much you are turning over right now

hotpickups

Can't see us doing partnerships as this band changes format etc

Phil_aka_Pip

hotpickups said:

Can't see us doing partnerships as this band changes format etc

That would make you an employer then, if you're hiring people on an ad-hoc basis. They are responsible for their own tax & ni. What you pay them is a tax-deductible cost of the job, although HMRC might expect them to invoice you for the money. If they don't, then you can't prove that the income from the gig isn't all yours.

hotpickups

I will certainly go the invoice route from them and definitely pay them through bank transfer. Thanks guys. Great advice