Registration for VAT RE Music Group

[ornple]

Hi all,

On the side, I play in a band. We have been going for a few years earning a few bob which was always under 5K when divided among our members, so we just declared as excess income via ROS as we are not a registered business. Last year we had quite a busy schedule and managed to bring in over 40K which is veering into VAT territory. I'm trying to rack my brain to figure out what to do.

From the info avail. online I've gathered the VAT registration thresholds apply to the overall income, not the individual income of each person. But anywhere this is mentioned it refers as to a business, which we are not. Should we be registered?

In either case the total amount is above the €37,500 threshold for the supply of services. Therefore, if your our income primarily comes from services (like performances or royalties), I'm assuming we would generally be required to register for VAT. But what if we're expecting a quieter year this year?

Sorry if this is vague at all - I'm just trying to make sure we're all doing the right thing.

 

[WizardDr]

I think issue here is that if the objective is a "..relationship which subsists between persons carrying on a business in common with a view to profit.." you may in fact have a Partnership. Even though none of you actually signed up for this. [Partnership Act 1890 and all that]

If that is the case then it the Partnership that is registered and if VAT applies the issue is that its a 12 month period and NOT when its simply over €37,500. This could mean VAT in reverse even though VAT may not have been charged. Partners subject to income tax / prsi / usc etc. filing annually and preliminary tax.

Musicians might argue that its the love of music and all that but I am not sure that would cut any ice.

On the other hand one individual might do most of the administration - are there invoices / insurance / bank account? So that might person could be a 'sole trader' and then you have the issue what is the status of the others? Some might argue a charity or non-for profit but these could be hard to argue.

I am not saying give up the band - you should get agreement on advice.