Does tax accounting seem confusing? You are not alone!

A working life with many sources of income

On the first page of Charline's book of advice for artists, it says that you should remember to write down all your income and expenses in one place during the year, preferably right away. 

This is especially important when you have a complex working life, because you can't let the tax accounting happen more or less automatically like most employees. 

In fact, a 2020 study shows that among 8,000 professional musicians and composers, 41 per cent had more than 16 work relationships in a year. The survey is prepared by a number of industry organisations in collaboration with the think tank Mandag Morgen.

"When you're an artist or musician, you fit into different boxes, and it's not the first thing that comes up when you search on Google or when you read the tax website," says Charline and mentions that it rarely says anything directly about being a fee recipient, as many performers are. 

Charline helps artists get to grips with some basic concepts, and then together they create an overview of income and expenses.

"The idea is that by meeting with me, you as an artist can look at your finances with a straight face and a greater desire to go for it, because we have been through the do's and dont's," she says.

A system built for the majority 

The tax system in Denmark is designed for those who make the most money - the wage earners. That's why it can be difficult to understand when an artist typically has many sources of income each year.

Something suggests that it's particularly difficult: the accountancy consultancy in the Danish Artist Association has always been sought after to a degree where we struggle to keep up with demand.

Maybe it's no wonder, because according to The study 'Working conditions for composers and musicians in Denmark' As of 2020, a whopping 26 % of artists had over 31 employers in one year, while only 5 % of respondents had one employer.

This places great demands on artists to ensure that the information provided by the employer to the tax authorities is correct:

"When you're a regular employee, you get a payslip and your salary is reported to SKAT by your workplace. But artists with multiple incomes and jobs need to be sure that it is reported correctly to SKAT and that they themselves report their deductions correctly so that they are not unfairly taxed," says Charline Astrupgaard.

Read also guidance for artists on tax

The artist economy requires a special overview

That's why Charline advises that you check whether the income you receive has been reported to SKAT, even if it's the employer's responsibility to do so. After all, it's the artist themselves who could end up being penalised.

"For artists, there's more to do in terms of tax returns and bookkeeping. And these do's and don'ts I try to give them so that they are equipped to know what to look out for."

Keep an eye out for our upcoming workshop with Charline Astrupgaard on running your own business, accounting and finances on 12 May at 14-17.

Are you a member and need help with your financial overview? Read and apply for the association's accountant consultations here.