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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
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

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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
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!

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