Paying tax on your online music sales.

[kenny mac]

Hi guys,
Thinking about putting out an album on iTunes,Amazon etc but need some advice.
Does the tax come off automatically with the sale from the site provider or are you liable for it ?
Or is there a ceiling before you need to pay?
Obviously not looking to be a major selling artist but interested in how it works and if any of you guys have looked into it?

[chapperz66]

I don't know the answer to your question but it would be nice problem to have!   

I think I would just head for Monaco.

[Mike_S]

Hi guys,
Thinking about putting out an album on iTunes,Amazon etc but need some advice.
Does the tax come off automatically with the sale from the site provider or are you liable for it ?
Or is there a ceiling before you need to pay?
Obviously not looking to be a major selling artist but interested in how it works and if any of you guys have looked into it?

Have wondered about this kind of thing myself, but can't help with the answer. If you did end up taking the plunge, hope you can make a few quid.

[Pete C]

Been looking into the same thing myself Kenny in relation to money earned from the band I joined this summer as we'll be starting to get a few paid gigs in the next few months. We'll only be playing pub gigs about once a month and with 5 of us in the band only expecting to earn maybe £20 to £50 each and there's travelling expenses, rehearsal room charges, strings etc to come off that.
Any tax on the income you make from selling your recordings is down to you to pay - you'd need to declare it to HMRC ( you live in UK don't you?) by completing a self assessment form.  This link might be interesting:
https://www.efestivals.co.uk/forums/topic/226543-local-small-band-making-a-little-money-tax-question/

It seems there's now a £1000 limit under which you don't need to declare income on hobby income. As I'm not expecting to earn more than £1000 per year (before any expenses) I'm hoping that I'll fall under this rule. Don't know what you earn from your recordings but if it's more than £1000, I expect you'd need to declare the income you get.

Hope this helps - I'm not a tax expert so I'd recommend looking into it further or getting some advice.

Pete

[kenny mac]

Thanks guys?