Touring is an exciting milestone for new artists, but also brings financial, tax and admin considerations.
Planning ahead will improve your cashflow and everyone’s touring experience.
In Part 1, we explained five areas to think about when getting ready for your first tour: funding, insurance, payment cards, merchandise and budgeting. Read on for insights into other key areas: recording royalties and planning for tax.
Royalties: ensuring correct records of your live performances
When you perform your songs live, you are entitled to performance royalties. But these don’t happen automatically: someone must provide the promoter or venue with an accurate setlist.
Why this matters:
- It ensures organisations like PRS, SOCAN, ASCAP etc. record your performances correctly
- Each performance contributes to your royalty income, often paid months later
- Missing setlists = missing royalty income
Most venues have a process, but you or your tour manager should take responsibility for:
- Submitting setlists after each show
- Ensuring the correct version titles and songwriting splits are used
- Keeping copies for your records
It’s an easy win that many early-stage artists overlook.
International touring and withholding tax
Withholding tax (WHT) refers to tax being withheld from income due to the recipient by the payer, and directly paid to the tax authority in the country where the performance, appearance or competition took place.
If you tour internationally, it’s likely that part of your performance fees will be withheld as tax at source (i.e. from the payer of the income), or payment on account against the recipient’s final tax bill. This can create cashflow challenges, but there are ways to mitigate it, including:
- CWA (Central Withholding Agreement) for the US
- A1 certificates for EU touring to avoid duplicate social security charges
- CRA waivers in Canada to reduce or eliminate withholding
These need to be applied for in advance, so early planning is essential.
Another crucial factor to consider is visas. Many countries require specific performer or working visas, and failing to obtain the correct visa may mean:
- You are not legally permitted to perform
- Your promoter may cancel or refuse payment
- Some or all of the foreign tax withheld may not be deductible against your UK tax liability, because HMRC often requires that the income is properly taxable and legally earned under the foreign jurisdiction’s rules for the credit to be claimed
This makes early planning essential – late visa applications are one of the most common causes of avoidable tax inefficiencies for touring artists.
You will also need to consider the requirement to register for tax in the countries where you are performing. This varies significantly:
- In some countries, your promoter will handle the registration and reporting on your behalf
- In others, you may be required to register directly, file returns, or appoint a local tax representative
- Some territories require additional compliance, such as social security declarations or local VAT/sales tax filings on merch sales
Because these obligations differ widely from country to country, we would always recommend you seek professional tax advice for the specific destinations on your tour. Proper planning can ensure that taxes are withheld correctly, you maintain compliance, and your ability to claim UK foreign tax credits is protected.
More complex tax planning
As your touring operation grows, so do the financial considerations. Areas where specialist advice can help include:
- Splitting production fees
- International tax structuring
- VAT treatment of touring services
- Transfer pricing where multiple entities are involved
- Reviewing contracts for tax efficiency
Look out for more insights into the tax complexities for musicians in our future articles.
How BKL can help
Our team of music specialists support emerging and established artists with accounting, tax, VAT, international touring advice and overall tour financial planning. Whether you’re preparing for your first tour or scaling up to larger productions, we can guide you through the complexities and help you stay financially in control.
We can help you with the entire WHT process. Through our connections to accountants and tax advisers overseas, via the DFK International network, we can call on local support from experts in over 90 countries and territories.
If you want to discuss how we can help you please speak to your usual BKL contact or use the form below.
