Pro artists and VAT???

[ichabod]

Don't really know much about tax... but would be interested to know if pro producers have to pay VAT on their equipment. Is it possible for them to somehow register a company or as a self employed contract worker then claim VAT back? Or does this then mean that they have to charge the record lable VAT in return???

 

[Marc]

I suspect theyd be classed as contract/soul trader ... so theres no reason why you couldnt claim VAT back on kit but obviously youd have to be VAT registered and also your accounts would balance if the IR interrogate you - they might not be too impressed if you tried to claim VAT back on a whole studio but hadnt actually been paid for any music

sure ott or someone cd shed more light in this direction...

peace,
m

 

[Continuum]

If you're a limited company, you can claim back the vat on business expenditure. Synths, chairs, stamps, envelopes, so long as its used by the business. Travel expenses and clothes aren't covered usually. VAT isn't charged on illegal substances, but in any case I think you'd have a hard time justifying them as business expenses....

 

[nik]

haha. as an artist/producer i think you should be more worried about the tax man taking it off your undeclared earnings rather than the other way round.

my colleague actually got a letter from the IR asking him some questions about his extra income activities....he was a bit freaked out by this and wondered how on earth they found out about this, the only time we had been paid in cheque was in my name....
the only thing we could think of was that the IR do a random scout and search policy using a list that your name gets entered on after an official music release (MCPS?)....

anyway we have since found out that you can offset the tax deduction on your earnngs against your studio equipment and any "expenses". If you were really organised with the books you could go to a party listen to some new tunes, keep yer reciepts, come home and log it as "research" - work which could be offsetted against your earnings!

but like i said artists arent business men and we still havent logged any earnings or expenses yet, cant be bothered......
but having said that the people who have the skills in such anal numeration abilities get paid the real money in the music biz.

 

[psyfi]

Well I'm, sure that if you set up a small studio/ business offering recording, producing, mastering services then your business would be able to clam the vat back.

Aren't allot of these small independent studios started up by people in order to produce their own music? That’s how it seems to me.<O:p></O:p>

 

[Continuum]

Well I'm, sure that if you set up a small studio/ business offering recording, producing, mastering services then your business would be able to clam the vat back.

Aren't allot of these small independent studios started up by people in order to produce their own music? That’s how it seems to me.<O:p></O:p>

Yeah but there's no reason why you can't set yourself up as a Ltd. company. I used to have one, I was director, employee, tea boy and everything else

 

[nik]

Well I'm, sure that if you set up a small studio/ business offering recording, producing, mastering services then your business would be able to clam the vat back.

Aren't allot of these small independent studios started up by people in order to produce their own music? That’s how it seems to me.<O:p></O:p>

but you can only claim vat back on equipment that the business has bought. the business would have to buy the equipment off you and it would make a loss...... unless you happened to make a couple of grand out of making underground electronic music.....

 

[Continuum]

but you can only claim vat back on equipment that the business has bought. the business would have to buy the equipment off you and it would make a loss...... unless you happened to make a couple of grand out of making underground electronic music.....

well yes, but it is possible

when I started my Ltd company I 'sold' my year old pc to it for the price it had been new AND then claimed the VAT back. Arf arf

 

[psyfi]

unless you happened to make a couple of grand out of making underground electronic music.....

Easy peasy. Where do I singe up?

 

[JPsychodelicacy]

my colleague actually got a letter from the IR asking him some questions about his extra income activities....

And he couldn't just plead the "I'm a drummer" defence?

Maybe see you this weekend dude,

J.