Self Employment and taxes.

As a musician 99% of us are, and will be self employed. Being self employed means we have to do our own taxes at the end of the tax year. Marcus taught us a way of saving money as a musician and how it works.

Personal Account:

This is our personal account for our own leisure, not for our business. The money in here must be taxed otherwise you'll be fined and/or jailed.

Business Account:

The money that goes into this account is for our business, such as musical equipment, travel money for fuel, anything that involves us doing our job. Because of this fact we are able to claim certain things so that we don't have to pay tax on them. For example If we have our own studio at home, we could claim on the electricity that we use in our house to run it as it is something that is work related. We could claim on fuel we use in our cars because we have to travel to certain jobs. Instruments is one of the main things as without them we can't do our jobs.

Marcus spoke to us about many different things we can claim tax back on to save money which is something everybody loves to do. A big point that he mentioned is that if we have recieved a large sum of money, for example £5000. As long as it goes into our buisness account we can avoid paying tax as it will be used to pay for our buisness and not ourselves.