Lesson 19 of 44Music BusinessIntermediate

What counts as an allowable expense

2:43

A plain-English look at what counts as an allowable business expense for working musicians, from strings and piano tuning to your phone, gear and travel.

Part of the courseMusic Business 101 for Artists44 lessons (2h 11m)

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What's in the course

44 lessons (2h 11m) · 1 free
    • 01. Accounting Basics

      1:20

    • 02. Tax

      1:28

    • 03. Where to find accounting advice

      1:00

    • 04. How to choose your accountant

      0:59

    • 05. What counts as an allowable expense

      You are here

      2:43

    • 06. VAT

      2:28

    • 07. Royalty Statements

      3:26

Lesson transcript

Understanding Your Music Business Expenses

Okay, what's the album? Everything to do with your business.

That's very broad, I know. But as I said earlier, think of:

  • Guitar strings
  • Piano tuning
  • Your mobile phone
  • Recording equipment

If you buy a laptop, invariably, you're going to use that:

  • A for communication
  • B for recording transport.

So, any business trips you're making may involve:

  • Going to see your lawyer
  • Meeting your manager
  • Visiting the recording studio
  • Attending rehearsals
  • Consulting your accountant
  • Meeting with a label
  • Collaborating with other musicians.

Additional Costs to Consider

  • Internet costs: Important for certain artists.
  • Clothing and grooming: If you're performing, you can't just go on stage as you are, although some people do go straight from the street and then head home.
    • However, you typically need some form of grooming, which is allowable.

If you belong to any musician's unions, those expenses are also allowable.

Trade Publications

  • Trade magazines: Like Music Week or MME (if it still exists) are all part of your direct costs.
  • Hiring musicians: If you're a solo artist, you'll likely need to hire other musicians, and the money you pay them is allowable.

Keep It Relevant

It's quite broad, so you have to really step back and ask yourself, "If I spent this, is it going to help me with my career?"

For example, some artists provide receipts for personal items, such as underwear or tights.

Direct Costs Matter

While we all need certain personal items, direct costs are what matter most in this context.

If you buy a notepad and pencil because you need to write lyrics, that's allowable too.

Don't forget about:

  • Inkjet costs
  • All those types of expenses that contribute to your business.

In summary, the expenses you incur should directly relate to your music career, ensuring they contribute to your professional growth and success.

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Imogen Heap

Imogen Heap

Imogen Heap is a Grammy-winning English singer, songwriter, producer and technologist whose influence runs through two decades of pop, electronic and film music — and through much of the technology modern artists now take for granted.

Born in London in 1977 and classically trained on piano, cello and clarinet, she released her debut album 'iMegaphone' in 1998 before forming the duo Frou Frou with producer Guy Sigsworth, whose song 'Let Go' reached a global audience through the film Garden State. Her self-written, self-produced album 'Speak for Yourself' (2005) delivered 'Hide and Seek', the a cappella landmark that later powered Jason Derulo's chart-topping 'Whatcha Say' and Ariana Grande's 'Goodnight n Go', and continues to find new generations of listeners.

'Ellipse' (2009) won the Grammy Award for Best Engineered Album, Non-Classical — recorded and engineered in her own home studio — and she went on to co-write and produce 'Clean' on Taylor Swift's Album of the Year-winning '1989'. She also composed the score for the stage play 'Harry Potter and the Cursed Child'.

A relentless innovator, Heap developed the MI.MU gestural gloves — recognised with three honorary doctorates — and founded Mycelia and The Creative Passport, initiatives building a fairer data ecosystem for artists. In 2024 she returned with 'What Have You Done to Me?', created with her AI vocal alter ego Mogen, while a viral resurgence of 'Headlock' brought her music to millions of new fans.

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