COMPANIES come in different shapes and sizes, but a local rock band is about to celebrate its first year of being incorporated.
The Crush, a three-piece band based in Portsmouth, has been playing in pubs and venues across the south since June 2009.
Guitarist and lead singer Richard Setford, 36, said that by August last year the band was having so many bookings that it became obvious they would have to form a company, and on September 2, 2010, they did just that.
He said: ‘It was advantageous from a tax perspective and in other ways as well, such as it’s cheaper to insure a limited company, rather than three individuals.
‘I work for a firm of accountants in Havant so I was very well placed to get good advice.’
The Crush is also made up of bassist Pete Gosling, 53, and drummer Jamie Lowe, 32.
Richard said: ‘There are a lot of websites that do company formations for you, and it cost us just £15 to incorporate the company.
‘In fact, we then opened a bank account with Barclays and got £50 cash back, so we were actually in profit before we’d even started.
‘We’re just coming up to the end of our first year, and we’ll have turned over just shy of £7,000, and we’re projecting a turnover next year of as much as £11,000 which for a pub rock band is phenomenal.
‘I don’t think other bands know how much money they make, and if the tax man catches up with them they’ll be left with quite a significant tax bill.’
The band also uses the company to pay expenses, and keeps a pot of money in case of equipment failure.
‘I know if my guitar amp blows up I can very quickly get a replacement without having to worry about the money for it,’ said Richard.
‘If other bands think about setting themselves up as a company, they should get an accountant first.’