When does a band become a business?

I thought I’d write about this subject as it may be the one time that my career as an accountant can actually have a small bit of relevance to the music industry.

 

Over the past few years, H M Revenue & Customs (HMRC) has started a major crackdown on individuals or groups of people who are making money and not declaring it for tax purposes.  Their main targets are people who are making money out of hobbies and one of these hobbies is through bands and solo artists performing gigs and getting paid.

 

There is a belief amongst many bands that they don’t have to declare their income until they are signed to a record label and are making big money.  Based on HMRC guidelines, any person receiving payment for a service or make use of their skills should declare this under self-assessment.  Now, I’ll be honest, this does seem a little excessive if you’re only making the odd £10 here and there for the odd gig.  But by not keeping a record of this, it could lead to future problems.  Now I’m not saying that everyone should start panicking that they’re going to be investigated by HMRC for tax avoidance and register themselves as self-employed musicians.  But what you should do is keep a record of all income from gigs you perform.  It’s also useful to keep a record of the date and the venue.

 

HMRC are especially keeping an eye on pubs and clubs which put on live music shows.  These venues have now been asked to start keeping a record of the names and addresses of all the people who they pay throughout the financial year for performing music.  This information will be handed to HMRC if they ever request it.

 

This may seem a little unfair, especially if you are only performing for the love of the music and not for the money.  But there are a few positives to HMRC wanting people to declare all other income they make outside of their employment.

 

If you have to declare all your income, you can offset any expenses relating to your band against this.  This can include expenses such as new guitar strings, drum sticks and advertising costs.  You can also claim a proportion of rehearsal costs if you pay for a rehearsal space.

 

If you have made a profit from your earnings after deductions, you would be taxed at the same rate as you would be through your employment income.

 

However, if you have made a loss, you may be able to offset this loss against your employment earnings.  This could lead to you receiving a tax rebate.  This is all subject to you correctly declaring you expenditure and not being dishonest to try and get a bit of tax back as this would get you into serious trouble as you would be breaking the law.

 

My advice to any band is to go out and gig, enjoy making a bit of money from playing and if you begin to start making some serious money, then contact a local accountant to discuss what is the best route to take.  Just make sure you keep a record of your income and your expenses in case you are ever asked to produce them.  In all honesty, it’s unlikely for a band in their first few years to be making a big profit and by keeping decent records, it’ll prove this.

 

In this blog I’ve only really mentioned a few basics about when your band becomes a business and have tried to steer clear of any really technical accountancy mumbo jumbo, but if you do have any concerns or want to look into this in more detail, you can always contact a firm of accountants or even have a look on the HMRC website (www.hmrc.gov.uk).

 

Stu (Secret Echoes)

 

My favourite guitar solos

The guitar solo is something that is synonymous with rock music. There have been countless rock guitarists come and go over the years, all with a unique take on what makes a great solo. For as many guitarists as there are playing solos there are far more people listening and forming opinions on them. No one will ever agree on what their favourite guitar solos are, but here are ten of mine in no particular order.

1. For the Love of God by Steve Vai. The seventh song on his breakthrough 1991 album, Passion and Warfare, For the Love of God is often held up to be Steve Vai’s best work. The song is essentially one long guitar solo and covers almost all aspects of Vai’s playing. An inspiration when I first heard it, it was the piece that really showed me the depth of emotion that was possible to convey while playing guitar.

2. Comfortably Numb by Pink Floyd. Often revered as having one of the best guitar solos of all time, the guitar playing in Comfortably Numb is outstanding. Pages and pages have been written about this solo, but for me it showed how effective blues phrasing could be in a rock setting. The big draw for me here was the tone as well, Dave Gilmour uses compression wonderfully well to give a warm and punchy tone that fits the song absolutely perfectly.

3. Beat It, solo by Eddie Van Halen. A great song that really comes to life with Van Halen’s guitar solo mid way through. Eddie Van Halen was the defining guitarist of the 1980s and opened up so many techniques and ideas that would be copied endlessly. He has recorded countless amazing solos across his career but I feel that the one in Beat It is among his best. It’s only short but is a pure explosion of his style showcasing breathtaking technique, style, tone and phrasing. If you ever want to discover why Van Halen is such a great guitarist then just listening to this solo should be enough.

4. Always With Me, Always With You by Joe Satriani (live version). I’m picking the extended live version from the Satriani Live! DVD rather than the studio version for this, mainly for Satriani’s wonderful improvisation section at the end of the track. This song showcases just why Joe Satriani is such a good guitar player. I’ve heard several different live versions of this song, as well as having seen him live a few times in person and he plays just as well every single time. The song is a masterclass in how to solo melodically and tastefully. Satch never makes a mistake either, and everything he plays is done to absolute perfection. You won’t find a better played guitar solo, and I doubt you’ll find a better player either.

5. Nottingham Lace by Buckethead. I only recently started listening to Buckethead, so it’s hard for me to pick out one solo in particular given that he excels in so many different styles. I picked Nottingham Lace out because it is a marvelous display of his technique as well as his melodic playing. Well worth a try and I’m looking forward to discovering the rest of his back catalogue.

6. Wonderful Slippery Thing by Guthrie Govan. Guthrie Govan is nowhere near as famous as he should be. An English guitar player, he is absolutely phenomenal, with a complete mastery of his instrument and a remarkable ability to play across a huge range of styles. I picked this song as it has been his strongest for many years, and the version on his recent album, Erotic Cakes, showcases his fluid style. A great player, hopefully soon he’ll get the recognition he deserves.

7. Goodnight Kiss by John Petrucci. While John Petrucci is most widely known for his lightning fast alternate picking this solo shows that he can pick out some beautiful phrases when playing in a more restrained style. The solo plays smoothly over changes and changes the style of the song superbly to blend into the next track, Solitary Shell. Petrucci is a great guitarist who has managed to blend blues and metal into a unique style, and I feel that this solo is one of his best.

8. Bliss by Paul Gilbert. Again with a player like Paul Gilbert I found it hard to narrow it down to one solo. I knew I wanted something from him in here, but was unsure what exactly. In the end I just picked my favourite song, which also happens to have some fantastic guitar playing in it as well. On Bliss Gilbert shows his Hendrix influence as well as considerable restraint, playing fast just where it is needed for maximum impact. A great player with a fantastic attitude to music.

9. Soma by Billy Corgan. This is pretty much the guitar solo that really started me playing. My biggest early influence was the Smashing Pumpkins, and in particular the album Siamese Dream. The solo in Soma stands out as one of Corgan’s best and is played to perfection as the song reaches its peak.

10. Bold as Love by Jimi Hendrix. A little cliched to include Hendrix perhaps, but his influence on guitar playing is unquestionable. In a similar situation to Paul Gilbert I was unsure of which to pick so in the end just picked my favourite song. Often overlooked for some of his more famous songs I actually feel that Bold as Love displays Hendrix’ songwriting at its strongest, of course it helps that is also has the fantastic guitar work you’d expect from him too.