Self-employment

What do we mean by self-employment? Sometimes it is also called being freelance. HMRC, the government body responsible for tax in the UK explains someone is probably self-employed and most of the following are true:

  • they put in bids or give quotes to get work
  • they’re not under direct supervision when working
  • they submit invoices for the work they’ve done
  • they’re responsible for paying their own National Insurance and tax
  • they do not get holiday or sick pay when they’re not working
  • they operate under a contract (sometimes known as a ‘contract for services’ or ‘consultancy agreement’) that uses terms like ‘self-employed’, ‘consultant’ or an ‘independent contractor’

There is further information here: https://www.gov.uk/employment-status/selfemployed-contractor

Self-employment as a musician necessitates a diligent approach to various business tasks. Establishing yourself as a professional entity not only instills confidence in clients and collaborators but also ensures compliance with legal and financial regulations. There should be three areas you need to be on top of once you have registered as self-employed with HMRC,

  • Bookkeeping (financial management) 
  • Paperwork administration (contracts and other documents)
  • Communications

By registering with HMRC, you formalise your status as a self-employed individual, enabling you to manage taxes and contributions efficiently. Diligent bookkeeping practices are crucial, enabling you to track income, expenses, and financial transactions accurately. Effective management systems can help streamline your workflow, safeguard sensitive information, and enhance organisational efficiency. Adopting a proactive and organised stance towards self-employment cultivates professionalism, instills trust, and lays the foundation for a sustainable and successful career in music.

When you are self-employed you will be required to issue (or send) invoices, that is a request for payment to your clients. Bookkeeping packages will usually issue invoices for you or you can create one in a program such as Word or as a pdf. If you have not done this before we have created a template invoice which you can duplicate for your business, simply click on the blue button just to the right here to downlad.

There are many really easy to use financial packages available nowadays that make it super easy to track and record all of your business expenditure; four of these are highlighted below; Sage, Quickbooks, Pandle and Xero. Check them all out for joining deals.