Mobile DJ Business Advice

smck99

Hi all,

I bought decks a few years back and inevitably ended up DJ'ing house parties and friends birthdays. Soon after I started getting some paid gigs and now have a bit of a name in my area and DJ functions and bars semi-regularly for cash in hand.

I have been thinking about going legit and setting up a business as I want to really push myself as a DJ and as a name. Would it be worth my while to set myself up as a sole trader? Just wondering if anyone has been through this or a similar process and might have any advice for me.

I plan on buying a car and would like to claim it as a business expense and use it as a commercial vehicle. Also possibly upgrade my decks, mixer, PA etc. sometime in the future, and write them off as business expenses. Also, I'm studying music production and would like to use the business to purchase any gear I buy for my career in the future. I plan on the business likely functioning as a name for multiple music related ventures in the future. Would this be allowed? Also, I highly doubt it but, could I possibly claim some lights I recently bought as a business expense, or "sell" them to my business?

What sort of tax might I expect to pay on gigs? Are there any other pros/cons of setting this kind of business?

However, I am in my final year of college, with plans to do a postgrad next year and will most likely only be gigging the odd weekend. Will this affect me, my taxes, my company car eligibility etc etc?

Any advice/information would be much appreciated. Thanks in advance

ianuss

I'm not too sure tbh but maybe if you start a 4th thread you might get some relevant info.

The_Honeybadger

Register as a sole trader using form TR1 which you can get from the revenue website, or register online using paye anytime.

You can write off many expenses you have related to the business when making your tax return. Keep receipts for all purchases. How much tax you'll owe depends on how much you make, what expenses you deduct, tax credits you have and any other income you have. Based on the info you have provided I doubt you'll be paying much tax, if any. All the info is on the revenue.ie website. If you are not sure of anything employ an accountant to do your return, it won't cost much and is deductible.

It is fine to carry out a number of different business activities under the one business name. If you want to trade as anything except your own name you will also need to register your business name with the Cro, this is simple to do online.

Btw you can't write off the purchase of a private car against the business afaik, but you will be able to put some running costs relevant to the business into your expenses.

smck99

@Ianuss: I know, I know, thanks. My phone was acting up, I've mailed the mods to delete the other threads.

ironclaw

You will pay tax based on what you earn and make. There are limits below which you won't have to declare. However, once you set up a business you need to have your eye on the ball about payments, receipts, VAT (if applicable) and recording everything you do. Personally I would do gigs on an ad-hoc basis and once you have consistant work, then I would set up a company. Remember a company means you can become liable to be sued, so you need to check how the company is formed (Sole or Limited) and then your probably going to need personal and public liability insurance as well. Running a business can itself be expensive.

I'd see can you get a chat with an accountant before making the plunge. Most will give you some advice for free or a low fee.

smck99

Many thanks for the replies folks. I'm going to research further into it and arrange a meeting with an accountant in the new year.