Whether you are a gigging musician, a session player, or earning royalties from streaming platforms, your income is taxable. The good news: musicians typically have significant allowable expenses. This guide covers the tax essentials for UK-based musicians in 2026/27.
Types of taxable income for musicians
- Live performance fees — gigs, festivals, corporate events
- Session fees — studio work for other artists/producers
- Streaming royalties — Spotify, Apple Music, YouTube
- Publishing royalties — PRS, MCPS payments
- Merchandise sales — t-shirts, vinyl, downloads
- Teaching income — private lessons, masterclasses
- Sync licensing fees — music placed in TV, film, adverts
Employed vs. self-employed
Most working musicians are self-employed — you invoice for gigs, set your own rates, and provide your own equipment. Some orchestral players and salaried music teachers are employed (PAYE). The distinction matters for how you claim expenses and report income.
Allowable expenses
- Musical instruments and equipment (can be written off over time or claimed outright)
- Strings, reeds, drumsticks, and consumables
- Rehearsal room hire
- Recording studio costs
- Travel to gigs and sessions (mileage or actual costs)
- Agent/manager commission (typically 15–20%)
- Promotional costs (website, social media, press photos)
- Music software and subscriptions (DAWs, plugins)
- Insurance for instruments and equipment
- PRS/PPL membership fees
- Stage clothing (if clearly costume, not everyday wear)
The Trading Allowance
If your total music income is under £1,000/year, the Trading Allowance covers it — no Self-Assessment needed. Above £1,000, you must register and file a return.
Variable income and budgeting for tax
Musicians often have feast-or-famine income patterns. Set aside 25–30% of every payment into a separate tax account. Remember that a good year may trigger payments on account for the following year.
Estimate your tax
Use the income tax calculator to enter your expected annual profit (income minus expenses) and see your tax and NI bill. If you also have PAYE employment, enter your combined total to see the marginal impact.