The busker tax
Street entertainers take card payments for tips ...but could face huge bills at the end of the festival
FOR most of us, contactless card payments have become a convenient part of modern life.
But street performers at the Edinburgh Festival have baulked at the introduction of contactless payment devices for tips over fears they will have to start paying tax.
This year’s festival has seen the introduction of ‘tap-to-tip’ – allowing punters to use their bank card’s contactless function to leave a gratuity, usually set at £2.
The Swedish technology firm iZettle has set up mobile units, akin to the card readers used in pubs and restaurants, next to the buskers plying their trade.
The performers then collect their takings at the end of the festival, paid directly to their bank account.
But this means they are liable to be taxed on their earnings, unlike the previous cash-in-hand tips which many do not declare.
Singer/songwriter Lucy May Walker, 26, from London, believes the card machines are a ‘godsend’ but the change will force buskers to ‘be more honest’.
She said: ‘There are a good few buskers who are unhappy about the change. A couple of them said it was a shame because now we would have to pay tax.
‘But I have always paid my fair share on all my takings.’
Miss Walker, who is performing twice a day on the Royal Mile throughout the festival, said it was vital she kept up with the modern world.
She said: ‘Busking is my full-time job so I need to move with the times. So many people have stopped carrying cash that it makes life harder for those of us who rely on the change in people’s pockets.’
Miss Walker said it ‘took some time’ for audiences to get to grips with the new technology but the concept soon caught on.
She said: ‘At first, people would look confused at the little gadget in front of them but as the week has gone on I have seen more people come up to give it a tap.
‘My last set – which was half an hour – saw ten different customers come and tip £2 each. After the card company take their 10 per cent that leaves me with £18 tips I otherwise wouldn’t have. And that’s not counting the cash tips, which fluctuate.’
The Royal Mile hosts more than 250 shows a day throughout the festival.
Around 90 performers have signed up to the payment points, which are earmarked throughout the strip. Volunto-tip teers shuttle them up and down the area between purpose-built stages and six different busking areas.
But not every performer is as willing to get to grips with contactless payments.
Heather Burns, 23, from Glasgow, is a fire-eater and sword-swallower who goes by the stage name Kaptain Mustard. She does not use a tap- machine and thinks they are not ‘in the spirit of street theatre’. She said: ‘I understand why people do it – it makes sense in this day and age. But I don’t like it.
‘It feels strange not to see your hat fill up after a performance, instead people stand in a line to use the little machine.
‘It all seems a bit like the book 1984 to me. It’s all so trackable.’
Barry Freeman, 63, from Aberdeen, agreed with Miss Burns and said the move to contactless was ‘a shame’.
He said: ‘They should all be paying their tax.
‘But I don’t see why people can’t just keep some change in their pocket if they know they are going to see buskers.
‘Everything is all on card nowadays. But with cash you know what you’re spending. And what if I want to tip less than £2?’
Andy Meldrum, street events manager at the Edinburgh Festival Fringe Society, said: ‘Artists rely on the generosity of the general public who stop to take in their shows when passing through our street event arenas.
‘Whilst cash contributions have worked for street entertainers for hundreds of years, we need to respond to the changing circumstances, which are affecting street performers all over the world.
‘Our partnership with iZettle is set to ensure our performers continue to get the support they deserve.’
Edward Hallett, managing director at iZettle UK, said: ‘Using our Repeat Payments feature at the Edinburgh Festival Fringe removes the manual payment process for artists, making tipping easier for the audience and performers.
‘We’re really excited to partner with the Fringe Society to give festival-goers the choice to pay in whatever way suits them best, whilst making sure each performer has the tools needed to get paid.’
‘What if I want to tip less?’