Tax bill threat to orchestras
Orchestras could be forced to close if they are made to pay more tax, the chairman of the Association of British Orchestras (ABO) warned today.
Michael Henson claimed many are facing a tax bill of about £33 million after the government changed tax legislation in 1998 to make employers of freelance entertainers, including musicians, pay higher national insurance contributions.
However, the problem has only just come to light, prompting the prospect of orchestras, unable to pay the outstanding debt, being forced to close.
Mr Henson told Today that the issue affects “every major orchestra and small orchestra in this country”.
The Tories accused the Treasury of “heavy-handedness”, saying the new tax guidelines could “mean curtains for orchestras throughout Britain”.
“It would be terrible if these new guidelines led to a decline in the quantity or quality of performances,” shadow culture minister Hugo Swire said.
