How to invoice as a musician: complete UK guide

Every invoice should include: Your details: Your full name (or business name if you have one), address, email, and phone number. If you are VAT registered, include your VAT number. Client details: The name and address of the person or company you are invoicing. Invoice number: A unique number for each invoice. This helps you and your client track payments. A simple system like INV-001, INV-002 works fine. Some musicians use the date plus a number (e.g., 2024-03-001). Invoice date: The date you are issuing the invoice. Description of services: A clear description of what you did. Include the date(s) of the work, the venue or project name, and the type of service (e.g., "Live performance at The Jazz Cafe, 15 March 2024" or "Guitar session for album recording, 10-12 March 2024"). Amount due: The agreed fee, clearly stated. If there are any additional costs (travel, equipment hire), list these separately. Payment terms: When payment is due. Common terms are "due on receipt", "due within 14 days", or "due within 30 days". State this clearly. Payment details: Your bank account details (sort code and account number) or PayPal address. Make it as easy as possible for the client to pay you. UTR number: If you are self-employed and registered with HMRC, include your Unique Taxpayer Reference number.

The best practice is to invoice as soon as the work is complete. For gigs, invoice the day after the performance. For sessions, invoice when the session work is finished. For ongoing work, agree a billing schedule upfront (weekly, monthly, per project). Some clients will expect to receive an invoice before they can process payment. Do not assume they will chase you for one. Send it promptly and follow up if you do not receive payment by the due date. If you are working through a booker or agent, check whether you should invoice them or the venue directly. Different arrangements vary. For larger projects, you may want to agree payment milestones: for example, 50% upfront and 50% on completion. Document this in your agreement with the client.

In the UK, you have legal rights when it comes to late payment of invoices. Under the Late Payment of Commercial Debts (Interest) Act 1998, if a business pays you late, you can charge: - Interest at 8% plus the Bank of England base rate - A fixed compensation fee: £40 for debts up to £999.99, £70 for debts £1,000 to £9,999.99, £100 for debts £10,000 and over These rights apply to business-to-business transactions. If you are invoicing a private individual, different rules may apply. Standard payment terms vary. 14 days or 30 days are both common in the music industry. Whatever you choose, state it clearly on the invoice. If a client has their own payment terms (some larger companies have 60 or 90 day terms), discuss this before agreeing to the work so there are no surprises.

If your taxable turnover exceeds the VAT threshold (currently £90,000 per year), you must register for VAT. If you are below the threshold, registration is optional. Being VAT registered means you charge VAT on your invoices (currently 20%) and can reclaim VAT on business expenses. However, it also adds admin and may make your services more expensive to non-VAT registered clients. Live musical performances can be VAT exempt in certain circumstances. The rules are complex and depend on the nature of the performance and your contractual arrangements. If you think VAT exemption might apply to your work, seek advice from an accountant. Most musicians below the threshold choose not to register. However, if you have significant equipment costs or work mainly with VAT-registered businesses, it may be worth considering.