money for the road

Touring Allowance

On tour and getting a weekly allowance for digs and food? Here’s exactly how to record it.

When you’re on tour and get a touring allowance each week to pay for your accommodation, how should you record it on your self-assessment?

— Lee, on a UK tour
the golden rule

Count it all as income, then expense what you spent

Your touring allowance (sometimes called a per diem — “for each day”) is income, just like your salary. The tidy, recommended way to handle it:

  • Income = your salary plus your touring allowance.
  • Expenses = what you actually spent on the job (accommodation, food and so on) — regardless of what the allowance was.

Example: £100/week allowance + £500/week salary = £600 income. You then expense what you really spent that week — say £90 on digs and food.

Didn’t keep your receipts?

It happens. If you didn’t track your spending on the contract, include the touring allowance as income and claim the full allowance amount as your expenses. In the example above that’s £600 income and £100 expenses. On the small chance HMRC ever looks at your accounts, that’s a sensible, satisfactory approach — but do try to keep receipts going forward, it’s always better to claim your real costs as often your expenses are more than your allowance.

Same principle applies to any “expenses money” — subsistence, kit allowances, travel top-ups. Declare it as income, then claim the genuine costs it was meant to cover.

keep reading
Expenses & Deductions Understanding Income
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