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Comment on Kate Nash and Lily Allen on OnlyFans should be a wake-up call for the music industry

According to a census conducted by the Musicians’ Union, nearly half of working musicians in the UK earn less than £14,000 a year from their craft

Interestingly just under the income tax threshold. So you could quite easily set yourself up as a Ltd with you as the director and sole employee, claim the full income tax threshold as the employee and live off the dividends as a director whilst saving tax there too.

I wonder if these musicians have considered a more tax efficient route for their craft? What a crazy idea. Of course musicians are famous for assiduously paying all the taxes they can.

Someone with more time than me might be interested in looking up the holding companies for Kate Nash or Lilly Allen and checking out their finances. 🙃😄.

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BeardedGingerWonder@feddit.uk ⁨3⁩ ⁨weeks⁩ ago
I’m lost, if they’re under the threshold why would you need to set up a company to make yourself under the threshold?

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- mannycalavera@feddit.uk ⁨3⁩ ⁨weeks⁩ ago
  That’s not how it works. It’s not about setting up a company to make yourself under the threshold. They’re only under the threshold because of how they’ve structured their finances.
  
  Set up company.
  
  Be director of company.
  
  Also be only employee of company as a separate legal entity.
  
  Get people to pay the company for any work the employee (i.e. you) does.
  
  Pay the employee (i.e. you) a maximum of just below the threshold for income tax each year.
  
  Anything else starys in the company.
  
  The company pays the director in the form of dividends (i.e. you) at a reduced tax rate any extra money it may have collected.
  
  You’ve saved income tax entirely and you’ve reduced your tax liability on anything else.
  
  Here’s Kate’s registered companies which are free to look up online by anyone. Whilst Kate the employee scrapes by under the tax threshold and has to graft on Onlyfans, Kate the director is in charge of a company that at the year end 2023 owed £164,586 (2022- £172,382) to the director (i.e. Kate).
  
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  - BeardedGingerWonder@feddit.uk ⁨3⁩ ⁨weeks⁩ ago
    Sorry, I’ve misunderstood I thought you were talking about the average musician earning £14k.
    
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