Invoicing as a booking agent: deposits, balances and commission

Invoicing as a booking agent usually means three things: invoicing the promoter for a deposit when a show is confirmed, invoicing or collecting the balance before or on the show date, and taking your commission before paying the artist. The exact flow depends on your agreements: some agencies collect the whole fee and pay the artist net of commission, while others let the artist invoice the promoter and then invoice the artist for commission.

Whichever model you use, the aim is the same: every show has a clear paper trail from offer to payout, so nobody is chasing money or arguing about numbers months later.

Key takeaways

Decide your invoicing model up front and put it in your artist agreements and booking contracts.
Invoice deposits as soon as a contract is signed, with a clear due date.
Commission is calculated on the basis set out in your agreement with the artist, which may be gross fee or fee after specified deductions. Spell it out.
Money you hold for artists isn't yours. UK rules for entertainment agencies cover how you handle it, so check them.
VAT and withholding tax can get complicated quickly, especially with overseas artists or shows. Get an accountant's advice.

Who invoices whom: the two common models

There are two common ways agencies handle the money for a show.

Model 1: The agency collects

The agency invoices the promoter for the deposit, then the balance, on the artist's behalf.
The promoter pays the agency.
The agency deducts its commission (and any agreed costs it has paid on the artist's behalf).
The agency pays the artist the remainder, with a statement showing the calculation.

This gives the agent control over collection and timing, and makes chasing easier. It also means you are holding the artist's money, which brings responsibilities (see below).

Model 2: The artist collects

The artist (or their company or manager) invoices the promoter directly.
The promoter pays the artist.
The agency invoices the artist for its commission.

This keeps client money off your books, but you rely on the artist to invoice promptly and tell you when they've been paid.

Some agencies use a mix, such as collecting deposits but letting the balance be paid to the artist on the night. Whatever you choose, write it into your artist agreement and the booking contract so the promoter knows exactly who to pay.

Deposits

A deposit is a part-payment of the artist's fee made by the promoter in advance, to secure the booking. It protects the artist if the show is cancelled late by the promoter, and shows the promoter is committed.

Common practice:

Amount: often a percentage of the guaranteed fee. Half is common, but it varies with the size of the show, how well you know the promoter, and the territory. New or unfamiliar promoters may be asked for a larger share or the full fee upfront.
Timing: due within a set number of days of the contract being signed, or by a fixed date ahead of the show.
What it's based on: the guarantee, not any potential percentage of ticket sales, since that isn't known yet.

Make sure your contract says what happens to the deposit if the show is cancelled, and by whom. That's a contract point rather than an invoicing one: see live performance contracts: the clauses that matter.

Balances

The balance is the rest of the fee. It may be:

Paid before the show, by bank transfer, by an agreed date. This is the safest option for the artist.
Paid on the night at settlement, in cash or by transfer, especially where there's a percentage or bonus element that depends on ticket sales.
Paid after the show, within an agreed number of days. Common with established promoters and festivals, but riskier.

If the deal includes a percentage of ticket sales (a "versus" or door deal), the guaranteed part may be invoiced in advance and the extra calculated at settlement, based on the promoter's ticket count and agreed costs. Get the settlement sheet in writing and keep it with the invoice.

Commission

Commission is the agency's fee, usually a percentage of the artist's earnings from shows the agency books. As a rough guide, UK live agents' commission is often somewhere in the 10 to 20 per cent range, but the only figure that matters is the one in your agreement with the artist.

Spell out in that agreement:

The rate, and whether it differs for certain types of shows (for example festivals, overseas dates or shows the artist sourced themselves).
What it's calculated on. Gross fee is common, but some agreements calculate commission after specific deductions, such as certain production costs or a support act paid out of the fee.
When it's earned: on payment received, not on signing the contract. If the promoter never pays, there's usually no commission.
How VAT is handled, if you're VAT registered (see below).

Show the commission calculation clearly on every artist statement, so the artist can check it in seconds. Artist statements explained covers layout and worked examples.

What a good invoice includes

Whichever model you use, your invoices should be clear and consistent. At minimum:

Your agency's name, address and contact details.
The promoter's (or artist's) name and address.
A unique invoice number.
Invoice date and due date.
The show it relates to: artist, venue, city and date.
What's being charged: "Deposit, 50% of guarantee" or "Balance of fee".
The amount, and any VAT, shown separately where applicable.
Payment details and the reference you'd like them to use.
Your company registration number, if you're a limited company.

If you're VAT registered, there are extra details a VAT invoice must include, such as your VAT registration number. HMRC publishes guidance on what a valid VAT invoice must show.

Payment terms and chasing

Clear terms prevent most disputes.

Put the due date on the invoice, not just "payment terms: 14 days".
Use a consistent reference format, such as artist, city and date, so payments are easy to match.
Send invoices promptly: a deposit invoice the day the contract is countersigned.
Have a polite but firm reminder process: a reminder on the due date, a follow-up a few days later, then a phone call.
Don't release the artist to travel to a show if the contract says the balance is due first and it hasn't arrived, unless you've agreed an exception in writing.

Track every show's money status in one place: deposit invoiced, deposit paid, balance invoiced, balance paid, artist paid. In Backline, each booking holds its invoices, so you can see at a glance which shows are fully paid and which are waiting on a promoter.

Handling money you hold for artists

If your agency collects fees on artists' behalf, that money belongs to the artists, not to you.

In the UK, agencies that find work for performers are covered by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003. These include specific rules for entertainment agencies, including how money received on behalf of a performer must be handled and how quickly it must be paid on. Read the current rules on GOV.UK, and get advice if you're unsure how they apply to you.

Good practice, whatever the precise legal requirement:

Keep artists' money separate from your agency's operating money.
Pay artists promptly once you've received cleared funds.
Send a statement with every payment.
Keep records of every receipt and payment for each show.

This is general guidance, not legal or financial advice.

VAT: the questions to check

VAT on live music bookings can be complicated, and the right answer depends on your circumstances. The main questions to work through with an accountant:

Is your agency VAT registered? If so, you'll normally charge VAT on your commission.
Is the artist VAT registered? That affects whether VAT is added to the performance fee.
Are you acting as an agent or as a principal? Whether you're simply arranging the booking on the artist's behalf, or buying and reselling the performance, changes how VAT applies.
Where is the show? Shows outside the UK, and non-UK artists playing in the UK, have their own place-of-supply rules.

Don't guess. HMRC publishes guidance on VAT for agents and on the place of supply of services, and an accountant who works with music clients can set up your invoices correctly from the start.

Overseas artists and shows

Two extra areas to be aware of:

Non-UK resident artists performing in the UK may have UK tax deducted from their fees under HMRC's rules for foreign entertainers, and the promoter or agent paying them may have obligations. Check HMRC's guidance well before the show.
UK artists playing abroad may have tax withheld by the overseas promoter under that country's rules.

Both affect the net amount the artist receives, so flag them in the offer and on the statement. Get specialist advice when you first deal with either.

A simple invoicing workflow

Offer accepted and contract issued: create the booking record with fee, deal type and payment schedule.
Contract countersigned: issue the deposit invoice the same day.
Deposit received: mark it paid and, if you're holding it, record it against the artist.
Balance due date: issue the balance invoice in good time before it's due.
Show day: confirm settlement terms with the promoter's contact. See the advancing checklist.
After the show: record any settlement extras, deduct commission and agreed costs, pay the artist, and send a statement.
Month end: reconcile your bank account against open invoices and artist balances.

Agents who manage a roster find this much easier with every booking, hold, contract and invoice in one system; see what a booking agent's CRM should do.

Frequently asked questions

Does the booking agent or the artist invoice the promoter?

Either can, depending on the agreement. In one common model the agency invoices the promoter, collects the fee, deducts commission and pays the artist. In the other, the artist invoices the promoter and the agency invoices the artist for commission. Agree it in writing before the first booking.

How much deposit should a promoter pay?

There's no fixed rule, but half of the guaranteed fee is a common starting point. Larger deposits, or full payment in advance, are often requested from new or unfamiliar promoters. The amount and due date should be in the contract.

What is booking agent commission calculated on?

It's calculated on whatever your agreement with the artist says, most often the gross fee, but sometimes the fee after specified deductions. The agreement should also say when commission is earned, usually when the fee is actually received.

Should a booking agent charge VAT?

If your agency is VAT registered, you'll normally charge VAT on your commission, but how VAT applies to the performance fee depends on the artist's status, whether you act as agent or principal, and where the show takes place. Take advice from an accountant and check HMRC guidance. This is general guidance, not tax advice.

What should I do if a promoter doesn't pay the deposit?

Chase promptly and politely on the due date, then follow up by phone. If the contract makes the deposit a condition of the booking, you may be able to release the date, but check the contract terms and talk to the artist before doing so.