Tax Query - First time registering for Tax as sole trader (DJ)

[Airhead Coded]

Hi,


It's my first time registering as a sole trader, could any body hear shed some light on (1) How the whole tax on DJ's works and (2) if somebody can break it down in plain simple English of the process involved and any tips are welcome too.

I have DJ'ed for 3 years now, as a hobby mainly for the first few years, but I've started to get a good few more bookings from other gigs I have done and I feel I should do the right thing and register as a sole trader.

Any advice would be greatly appreciated, thanks

[Red Room]

Hi,


It's my first time registering as a sole trader, could any body hear shed some light on (1) How the whole tax on DJ's works and (2) if somebody can break it down in plain simple English of the process involved and any tips are welcome too.

I have DJ'ed for 3 years now, as a hobby mainly for the first few years, but I've started to get a good few more bookings from other gigs I have done and I feel I should do the right thing and register as a sole trader.

Any advice would be greatly appreciated, thanks

First and most crucial piece you need to know is to get yourself an accountant ASAP. The tax system is no different for DJs compared to any other trade; the main difference you will see have is ensuring you note down any income and outgoings that you have; this is the same for any trade no matter what you are doing.

[mini-fanatic]

That is good advice,

A good accountant will explain everything to you,

You keep all of your receipts, and at the end of each month you compile a profit and loss account.
In a few years you may have to register for vat,
but that is another story altogether.

Make an appointment with an accountant and have an informal chat.

[Caretaker]

Stay away from VAT if you are doing mainly private functions as you will be
21 % dearer than the cash in hand DJs..

venues or corporate events VAT not an issue as they can claim it back .. the everyday "joe soap" cannot

we in most cases have to charge the same as the cash in hand DJ and absorb the VAT..

Totally unfair but as you can see from other threads "Blackmarket" is alive and well in Ireland and continues to grow...

[disc]

unless your making around 20 grand plus dont register for vat .
As it would not be worth your time

[Airhead Coded]

Thanks for the advice everyone, Ah I won't be going anywhere near VAT for the foreseeable future.

but very useful advice nonetheless, will arrange an appointment with an accountant

[mise]

Have there been many cases of DJs being caught out by revenue?

Can really only think of one high profile enough story from a few years back involving Robbie Butler of Pod

[upatdawn]

I'm interested to know how did you get on with the Revenue regarding registering as a sole trader, was it complicated and did you have anything to pay, and roughly what do you pay now? Thanks as i'm in the same boat and would like to know before I go ahead with it.

[disc]

Hire an accountant and he will organise everything

[Steve3017]

Have there been many cases of DJs being caught out by revenue?

Can really only think of one high profile enough story from a few years back involving Robbie Butler of Pod

You can only be "caught out", if you are foolish enough to think you will never be caught. So, sort your status out with Revenue. I have never had a problem with them, they are helpful on the phone if you need things explained.

As was said before, register as a "sole trader" (it's free by the way...), then keep a "cash book", note all your payments in and out, balance them every week, so as not to have a headache doing your returns every year. Keep receipts for everything, until you know what is allowable and what is not.
If you are PAYE already you will be surprised how much you can offset against your daily living expenses.

Hire a reputable accountant, they will explain what you need to do, (haggle a good deal with them, don't wait for their bill after your accounts are done)

As was also said, stay away from the VAT, unless you plan to buy loads of equipment, a van, rent an office etc. It's a giant pain. You may find regular venues, and corporate clients expect to be charged vat, but it makes no difference if you are not.

Oh, and best of luck...