Record Keeping for Tax Purposes Bookkeeping, for tax purposes, information and guidance for freelance musicians. Last updated: 14 November 2025 The content on this page is for information only and does not constitute financial advice. Please speak to a financial advisor or tax consultant for advice on your specific circumstances. MU members have access to a dedicated tax helpline with Musicians' Tax Advisor as a benefit of membership. Being a freelance musician comes with a lot of freedom and perks, but in addition to being your own ‘boss’ you also need to be your own bookkeeper and keep records. Here we help outline key information around what expenditures you should keep records of and where/how to keep track of them. Keeping Records for Tax Purposes Some expenses have an element of private expenditure and need apportioning before you make a claim. HMRC will accept claims for business use of telephones, cars and rooms used as offices, studios etc. As a general rule keep track of the following: Expenses Invoices Contracts & Correspondence (This should include both individuals you employ and that employ you) Travel mileage It is unrealistic to expect taxpayers to log every telephone call and keep an exact record of business mileage, but any valid evidence you have for the amount claimed is very useful. Logging telephone calls, business mileage and evidence of journeys for a sample period could be very helpful indeed if there was a dispute about the amount claimed. It will not be considered good enough to claim an estimated percentage without some evidence; these claims will be an open invitation for an HMRC enquiry. Paper vs Digital Records From April 2026, HMRC will require all self-employed individuals with qualifying income of £50,000 or more, to keep digital records and file a quarterly update to HMRC. This is known as Making Tax Digital (MTDfIT) for income tax. Once you're in MTDfIT, your digital record should include the amount, category and date of income and expenses relating to your self-employment, and should be kept in some form of software. How long should you hold records? Any record which has been used to claim a tax deductible expense in your self employment business should be kept for a minimum of five years and 10 months following the end of each tax year. This includes telephone bills, receipts for car repairs, servicing and insurance, plus household bills for council tax, insurance, maintenance and repairs etc. HMRC can impose a fine of up to £3,000 for poor record-keeping. HMRC has produced a guide which includes details on the bookkeeping requirements for the purposes of Self Assessment. View HMRC guidance on digital records Tax Advice for Musicians provided by Musicians' Tax Advisor We work with Musicians' Tax Advisor, a firm of specialist Chartered Tax Advisor's to support members with all aspects of tax, accounting and bookkeeping. MU members can receive straightforward tax advice from Musicians’ Tax Advisor as a benefit of membership. This isn’t a replacement for a tax advisor and doesn’t cover complex or time-consuming issues. You can contact Musicians’ Tax Advisor by submitting this enquiry form: Submit Tax enquiry. FAQs Bookkeeping for Musicians What if I’m unsure about a specific expense or tax rule? Read answer Collapse answer It’s best to consult a professional. You can contact Musicians’ Tax Advisor via the MU’s enquiry form or reach out to the MU’s Tax Advice Helpline for guidance. Can I get help with tax and bookkeeping as a musician? Read answer Collapse answer Yes. MU members can access support from Musicians’ Tax Advisor, a specialist firm offering straightforward advice. This service is included with membership but doesn’t cover complex or time-consuming issues. What records should a freelance musician keep for tax purposes? Read answer Collapse answer You should retain all receipts, invoices, and records related to your music business. This includes: Telephone bills Car expenses (repairs, servicing, insurance) Household bills (if claiming for a home office or studio) Any other costs related to your music work. How long should I keep my tax records? Read answer Collapse answer You are required to keep all relevant records for at least five years and ten months after the end of each tax year. This helps ensure you’re covered in case of an HMRC enquiry. What happens if I don’t keep proper records? Read answer Collapse answer HMRC enquiries Disallowed expense claims Potential penalties or fines. 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Tax Advice Helpline Free consultation and discounted fees on selected tax advice Read more about Tax Advice Helpline
Tax Investigation Insurance Claim a fee reimbursement of up to £100,000 in the event of a HMRC investigation or dispute. Read more about Tax Investigation Insurance
Personal Accident Cover Claiming financial benefits in the event of an accident at work Read more about Personal Accident Cover
Financial Assistance Grants and funds you can access when you are an MU member. Read more about Financial Assistance