Accounting%20Down

The last issue basically finished coverage of the various expense claims you can make against your self-employed earnings, and that leaves us now with the final step. We have gathered all our details, receipts, bank statements, invoices and remittance advices together and have received our Summary of Earnings and IR3 Tax Packs from the IRD, so now we can start putting everything together to finalise and send our tax returns in to the IRD for processing. ...more

In the previous NZM we covered the tricky subject of accounting for recording and pressing costs. It is a difficult issue to cover and there are very few hard and fast rules on it – consequently I got numerous emails and requests for help. The communications seeking advice were mainly about the reasons why you can’t claim your entire stock in one year as an expense. What we have to understand is that we often don’t treat our music business as a ‘real’ business, and that is why we so often get it wrong and end up getting offside with the IRD. ...more

Last issue we looked at Staging, Hospitality, Advertising and Promotions and I have received a lot of questions arising from the article, especially in relation to the complicated issue of hospitality. Just remember to look at any expense you have and think whether or not you believe it is a legitimate expense – not whether you can get away with the claim – that attitude just doesn’t work. If you do get audited, and you can justify your claiming of an expense because in your heart you strongly believe it was a true cost to your business, you will likely convince anyone challenging its validity. ...more

In recent issues of NZ Musician we have covered many claimable expenses including Motor Vehicle Costs, Other Travel Costs, AC Levies, Assets, Depreciation, Repairs, and Accessories under $500, Insurances, Professional Fees, Hireage and Sub Contractors and Practice and Study Room Costs – and how to calculate these. ...more

In this issue I am going to look at some of the other costs that we can claim as self-employed musicians. We have already looked at motor vehicle costs, other travel costs, AC Levies, assets, depreciation, and practice and study room costs and how to calculate these. The other costs centres are relatively easy to work out but are often neglected as they’re not considered important enough or, are smaller amounts, however if added together can be quite a significant claim and are just as important in making your business work. ...more

Last issue we looked at Motor Vehicle and other travel claims which is one of the biggest areas of expense we musicians have besides the purchase of our equipment. The other big cost area is the cost of practising. ...more

Motor vehicles are one of the big areas of cost that we all have. It is surprising just how many musicians are not aware they can claim costs for getting from home to practice, home to the local music or CD store, home to the gig and then the bank, and back again, etc. There are a number of ways you can claim for motor vehicle expenses. Firstly you should keep a logbook. That can be a pain in the butt, yet it is surprising just how high the claimable percentage will be if you do keep one and monitor all the times you use your vehicle for music related travel. The logbook needs to be kept for a minimum of three months and once the percentage is calculated, that figure can be used for two years before you need to update it. Most of my clients who use this method are getting percentages in the high 60s to 80s which means they are claiming a significant portion of their motor vehicle costs. ...more

It’s that horrible tax time of the year again that presents a number of possibilities and decision making for all musicians. You either welcome it (hard work acknowledged), or dread it. ...more