All quotes submitted by musicians on Encore are VAT inclusive.
Claiming back VAT on the Service fee
All the quotes you send to clients on Encore include our Service fee. This fee goes towards the outbound marketing Encore carries out to bring you gigs, the automatic payment processing system, and the provision of 24/7 support to yourself and clients.
When it comes to VAT, the Service fee is very similar to your other work-related expenses, just like sheet music or pencils, are important for helping you carry out your job.
Just like these work-related tools, you can claim the VAT back from the government in the usual way.
Here's an example of how a quote breaks down.
Note: the Service fee is taken out of the total quote inclusive of VAT. In this example, you could claim back the VAT from the Service Fee (£40).
Total Quote: £1200
- Performance Fee: £1200
- Travel: £0
VAT breakdown of the Total Quote:
- £1000 Quote + £200 VAT
When paying the Service Fee to Encore, the musician pays 20% of the Total Quote which is £240.
VAT Breakdown of the Service Fee:
- £200 Service Fee + £40 VAT
The musician can then claim back the £40 VAT on the Service Fee.
If you would like to claim back VAT from a particular Encore booking, please email us as firstname.lastname@example.org explaining which booking you'd like to claim VAT back on and we'll send over an invoice detailing the VAT breakdown which can be used when submitting tax returns.