Forget the encore: Many self-employed musicians are singing the blues because of tax errors, according to a new study by Pirate.
It turns out the green room isn't making it greener for independent musicians, many of whom are feeling the financial perils of the UK's tortuous tax codes. Pirate, a global network of studies, surveyed more than 500 DJs, music producers, bands and live performers and found that about half of them overpay on their tax returns.
Without a phalanx of managers and accountants at their disposal, tax season has always been a drag for independent artists. Those musicians are not taking advantage of essential tax-deductible expenses, such as performance-related travel and accommodations, studio time, and equipment cost and maintenance, Pirate's research states.
50% of respondents who filed self-assessment tax returns indicated that they do not record all tax-deductible expenses to which they are entitled. The most common expenses are subscriptions to music streaming platforms such as Spotify, Apple Music, Tidal, and SoundCloud Pro.
In other parts of the studyPirate says only 30% of self-employed musicians use an accountant and 25% use accounting apps. However, a more worrying statistic is the 48% of artists surveyed who said they were in debt. 51% had no savings.
“Accounting and taxes are not what most people dream of when they imagine their music career taking off,” said Emmavie Mbongo, artist and community manager at Pirate. “In fact, managing your own finances is one of the most intimidating parts of monetizing your talents, but it becomes necessary early on.”
Pirate has now developed a series of free workshops and a guide to help music creators manage financial management pain points. You can know more here.
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