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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am employed full-time earning just over £19,000 a year. I

Customer Question

I am employed full-time earning just over £19,000 a year. I am also a musician and am planning to make my album available to download online. Realistically I am probably going to make hardly any money from this but I'm unsure as to whether or not I have to pay tax on anything I make. From what I've read I think I might have to fill in a self-assessment tax form and declare it as additional income, is this correct? It's all very confusing!
Many thanks in advance
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

If you sell your album as a download or even on CD or vinyl, any profit you make will be taxable income.

You will need to register as self-employed which you can do here. I suggest you run your accounts to 5 April to coincide with the end of the tax year so if you start in the current tax year, you will have a period of less than 12 months to 5 April 2016. After the end of the tax year, you will be issued with a self-assessment tax return. If you wish you can register to complete the tax return online here but only after you have been set up for self-assessment.

Take a look here for tax return submission deadlines. Add a year for the 2015/16 tax return deadlines. Look here for information on how self-employed tax and national insurance is paid.

You need to keep records of your business related expenses. There is a guide here.

I hope this helps but let me know if you have any further questions.
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Customer: replied 2 years ago.

Thank you for your help. It all looks very complicated but hopefully I'll do it all properly!

Expert:  TonyTax replied 2 years ago.

Thanks for accepting my answer. You'll be fine if you take your time with self-assessment.