How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

Our band have set up a bank account and as no members of the

Customer Question

Our band have set up a bank account and as no members of the band take any money personally, all monies made are used for touring and equipment. Do we have to register with the hmrc? We have set up a treasurer's account so we can apply for grants and sponsors from local companies.
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Thanks for your question.
Yes you will need to register with HMRC, as you will be treated as a partnership - with as many partners as there are members.
And, if as you say all the profits are used for touring and equipment, then none of you will have any tax liability but HMRC will be able to see this is the case.
You should arrange to set up the partnership and then each member should be listed (and register) as a partner, and at the end of each tax year, the main partnership return will be completed (usually one partner is treated as the lead partner to ensure this takes place) and that lead partner also advises the other partners of any share of the net profits remaining, so they can complete their own self assessment tax return (even if there share of the profits is NIL)
You may find in due course that HMRC advise there is no longer a need for the partnership to complete tax returns if the NIL share of profits continues, but its for them to say, rather than you not to bother - so this is why you need to be sure that you are all fulfilling your obligations with HMRC.