Making Tax Digital for Income Tax is the biggest shake-up of the UK tax system for decade. Photo: Shutterstock.
Making Tax Digital for Income Tax (MTD for IT, or MTDfIT) is the biggest shake-up of the UK tax system for decades. The new rules will affect freelance musicians who meet qualifying income thresholds and fundamentally change the way you interact with HMRC.
To support members through its introduction, the Union has worked with MU Tax Consultant and founder of Musicians’ Tax Adviser, Sinead Pratschke, to put together a guidance pack on Making Tax Digital for freelancers – including digital record requirements for self-employed members.
View the MTDfIT guidance pack
The guidance pack also includes a series of videos for MU members only, covering:
- Why MTD is happening and when it's likely to affect members
- What members need to be aware of to meet the new HMRC rules
- How to implement these big changes into your music business as easily as possible.
Watch the videos (My MU login required)
Freelance musicians need to know what's coming
MU Tax Consultant and founder of Musicians’ Tax Adviser, Sinead Pratschke, says:
Making Tax Digital for Income Tax is the biggest shake-up of the tax system in 40 years. Musicians need to know what's coming and how to prepare. That's why it's great to see the Musicians' Union leading the way with enhanced support and resources for their membership.
We at Musicians' Tax Advisor are delighted to expand the scope of the existing tax helpline and collaborate, providing guidance via video explainers, Q&A sessions. and a dedicated resource page on the website.
Guidance on MTDfIT for freelancers is just one of our benefits for members
Assistant General Secretary Matt Wanstall said: "Making Tax Digital (MTD) is a huge change that will affect most members across the next few years, and we are pleased to be able to provide support and guidance in this area via Musicians' Tax Advisor.
"The MU has always recognised the importance of tax advice for members, and they can receive basic tax advice, whether related to MTD or any other work related tax issue, from Musicians' Tax Advisor as a benefit of membership."
Whether you are an employed or self-employed musician, you need to know about how the tax system works for you. From National Insurance and VAT deductions to Self Assessment and claiming expenses, our guidance will help you navigate the process of paying tax as a musician.
Find out more in the Union's Finance and Tax hub, which also features advice for musicians on managing finances and getting paid.
About MU Tax Consultant and founder of Musicians' Tax Adviser, Sinead Pratschke
Sinead Pratschke CTA, ATT, FMAAT, trained a musician at the Royal College of Music and worked as a freelance musician throughout her 20s. She then retrained as an accountant and became a specialist tax advisor. Here she explains why she moved into tax advice and her partnership with the Musicians' Union:
"Musicians' Tax Advisor was set up to offer business, finance, and tax advice from someone who truly understands the nuances of working within the music industry. I love the work we do to support Musicians' Union members via the tax helpline, the Making Tax Digital guidance pages, and other access points on the MU website.
"Beyond the MU, Musicians' Tax Advisor is a full-service accountancy practice, offering Annual Accounts, Tax, VAT, royalty management, and Orchestra and Theatre Tax Relief. Our superpower is navigating the complexities of working overseas as a music business.
"We also run a group called 'The Business of Music', which provides business, finance, and tax support within a community setting to those musicians who would otherwise struggle to access this kind of professional advice."