Making music is creative, expressive, and deeply personal.
Unfortunately, tax is none of those things — and that’s where many musicians get caught out.
Over the years, I’ve seen incredibly talented musicians lose money, sleep, and sometimes momentum, simply because no one ever explained the financial side in plain English.
Here are the five biggest tax mistakes musicians make, and what to do instead.
1. Not Treating Music Like a Business (Until It’s Too Late)
Many musicians see music as a passion first — and a business second (or third). That mindset often delays important decisions like registering as self-employed, keeping records, or planning for taxes.
HMRC doesn’t care whether income feels “serious” yet.
If you’re earning from gigs, streaming, teaching, session work, or merch — it’s taxable.
The fix:
Treat your music as a business from the first pound. That doesn’t mean losing creativity — it means protecting it.
2. Poor Record-Keeping (or No Records at All)
Scrambling through bank statements before the tax deadline is one of the most common — and stressful — mistakes musicians make.
Missed receipts = missed deductions.
And missed deductions = paying more tax than you need to.
The fix:
Keep it simple. One account, basic bookkeeping, and regular habits beat last-minute panic every time.
3. Claiming the Wrong Expenses (or Not Claiming Enough)
Musicians often fall into one of two traps:
- Claiming too little because they’re unsure
- Claiming too much without understanding what’s allowable
Instruments, equipment, software, rehearsal space, travel, marketing — many legitimate expenses go unclaimed, while others are claimed incorrectly.
The fix:
Get clear guidance on what’s allowable for musicians specifically, not generic advice that doesn’t fit your world.
4. Ignoring VAT Until It Becomes a Problem
VAT is often overlooked until turnover creeps past the threshold — and by then, it can be expensive and stressful to fix.
Gig income, teaching, overseas work, merch and digital sales can all have different VAT implications.
The fix:
Plan before you’re forced to react. Early advice can save thousands and avoid nasty surprises.
5. Not Planning for Tax Bills (Cashflow Shock)
Musicians don’t get monthly payslips with tax deducted. That first Self Assessment bill — especially with payments on account — can feel brutal if you’re unprepared.
This catches out even successful musicians.
The fix:
Build tax into your pricing and cash flow from day one. Predictability beats panic.
Final Thought
Most musicians don’t make tax mistakes because they’re careless.
They make them because the system isn’t designed for creative lives.
The right advice doesn’t box you in — it gives you freedom, clarity, and confidence to keep making music without financial fear.
Because when the numbers are handled properly,
creativity has room to breathe.
