Amateur music group

turboace

If  musicians come together to practice regularly and play occasionally for other organisations (typically village halls) do they need to register with HMRC, file accounts, pay tax?

INCOME
Membership subs total per year £1100
Performances say £1200


EXPENSES
Room hire  £600
Equipment £200
AGM - meal to review £300
Expenses for external musicians (deps) £200


Surplus funds retained for purchase of music and equipment.

Currently the members do not get paid. As the group grows in reputation travel expenses may be paid.

Brie

I would have thought that if it's just expenses then that's not income.  So no tax to pay as no one is actually earning anything.  

Bookworm105

technically you are an unincorporated "association/body". There is also a case to make that you are actually trading because your income source is more than just member subs, ie you charge for performances, and therefore could come under this:

Unincorporated associations - GOV.UK

You may describe it as a "surplus", but HMRC may see it as a nearly 40% profit - subject to what you mean by "purchase of music and equipment".
Either way I think you are on thin ice with £300 AGM meal since one could argue that is a "benefit" to the members.
What rules exist for how the group operates and what people's money can be spent on, including what happens if the group incurs losses/debts?
You seem to be on the verge of needing to be more formally organised?

obviously many clubs do not face tax bills, but it is wise of you to seek further clarification of your exposure to tax 

CTM40105 - Particular bodies: clubs: introduction - HMRC internal manual - GOV.UK

TheSpectator

Nobody needs to be physically paid in the self-employed/partnership space for it to be deemed taxable income.

sheramber

Why a meal to review AGM?

What is the reasoning behind that apart from a jolly?

Why do members not pay for their own meal?

I would not think a meal is a necessary business expense. 

You would need to justify to HMRC.

theoretica

I agree it seems worth getting more formally sorted out. Not just for avoiding nasty tax surprises. What happens to the kit and music if the group stops?