Money & Insurance
Per diems, tax on overseas fees, and the cover you need before you leave
Per diems & tour float
Daily cash keeps everyone fed and stops the tour account being nibbled to death.
Setting a per diem
A flat daily amount per person, paid whether or not the day has a show.
- Typical touring per diems run around $30 to $60 a day per person, higher in western Europe and Japan.
- Pay for travel days too — those are the days people spend the most on food.
- Agree in advance whether catering and rider food reduce the per diem.
- Keep a simple signed sheet of who received what; it saves arguments at settlement.
Tour float and settlement
Carry a working cash float and settle the books at the end of each leg.
- Keep a separate band card or account for the tour so personal spending never mixes in.
- Photograph every receipt the day you get it — thermal receipts fade within weeks.
- Settle door splits in writing at the venue, before the room empties.
- Record foreign cash takings at the rate you actually convert, not the headline rate.
Tax on foreign income
Many countries withhold tax on performance fees at the source, before you are paid.
Withholding tax
Expect a cut to be taken from the fee in several touring markets.
- Common rates sit around 15% to 30% of the gross fee, deducted by the promoter.
- The UK's Foreign Entertainers Unit allows a reduced-rate application when costs are high relative to fees.
- Always get a withholding certificate from the promoter — you need it to claim relief at home.
- Australia has tax treaties with most touring markets; foreign tax paid can often be credited against Australian tax.
GST, VAT and sales tax
Merch sales and fees can carry local consumption tax.
- Price merch inclusive of local tax so you are not out of pocket at the border.
- Some countries allow VAT refunds on touring expenses — keep tax invoices with your band details on them.
- Keep a per-territory record of gross income, tax withheld and expenses; it makes year-end far cheaper.
Insurance
The three covers that matter: gear, people and liability.
Gear insurance
Home contents cover almost never covers professional gear on tour.
- Ask specifically for worldwide cover, in-transit cover, and cover while gear is left in a locked venue or vehicle.
- Many policies exclude items left in an unattended vehicle overnight — read that clause before the first drive.
- Keep a gear inventory with serial numbers, values and photos; your Gear Inventory page can hold this.
- Airline liability for a damaged instrument is capped far below replacement value, so do not rely on it.
Travel and liability
Venues and festivals commonly require proof of public liability cover.
- Public liability of $10 to $20 million is a common contract requirement in Australia and the UK.
- Travel insurance should include medical cover, trip cancellation and missed-connection cover for tight routings.
- Check that the policy covers paid professional performance — leisure travel policies often exclude it.
Making a claim
What insurers ask for, every time.
- A police or airline damage report filed within 24 hours of discovering the damage.
- Photographs of the damage and of the case it travelled in.
- Original purchase receipts or a valuation, plus serial numbers.
- Boarding passes and baggage tags for anything damaged in transit.
Your band's notes
Policy numbers, broker contacts, your agreed per diem and float amounts.
No notes yet.