If you are an individual who is residing in the UK and offering services as a freelancing DJ, you need to know what exactly are you entitled to and what are tax deductions for DJs. There are a lot many benefits to becoming a freelancing DJ service as well. The range of benefits starts from setting up your schedule to working for as many clients as you wish. This will allow you to enjoy the opportunity to increase your earnings. If you are intended in making a career as a DJ, freelancing will turn out to be a great move.
You need to be aware of the downside that brings the liabilities related to tax implications. To make you realise this tax responsibility, we have got you covered with the most common tax deductions that you might not be aware of. This will help you to analyse realistically and plan for your DJ career accordingly. You will be able to know the exact expenses and the relevant tax deductions before you pool in efforts for your DJ career as a freelancer.
Get in touch with one of our professionals to learn more about tax deductions for DJs. We will love to hear out your queries and provide instant solutions.
1- Internet and Telephonic Bills
You will have to pay your telephonic bills as well as the Internet connection payments regardless of your source of earnings. However, when you depend on the telephone and Internet facility to provide your services as a freelancer DJ, you are allowed to deduct this cost from the tax returns. So wherever you are upset about the last-minute cancellation of the gig by your agent, you will not worry about the cost and amount of money you spent on these basic facilities to run your DJ business.
2- Attending Seminars, Conferences, and Shows
Investing in your business is important and a tip to go ahead in your career when you are self-employed. You are enthusiastic and encouraged to attend the shows, conferences, and seminars to be aware of the updated trends and the tech to explore in great shows.
This will help you to go ahead in your career. You will develop your network along with other exploration factors. However, the attendance fees frequently can be quite an expense for you. The good news here is that you can get this money back by putting in a tax deduction because this is for your career development.
3- Promotions and Advertising
Promoting your services and advertising will get you interested in email marketing and homemade flyers. This depends on you what choice you prefer to promote our business. Whether you are taking the services of a graphic designer or other experts, the service fee can be claimed back that you have paid to avail the services for business promotion and advertisement. Moreover, you have to ensure that you get a proper receipt or invoice to make the presence of the evidence.
4- Lighting Equipment and Decks
The DJ business is not able to carry out without the lighting equipment, decks and other relevant material. However, even if you are getting your hands on second-hand equipment, it is expensive. You will be relieved to hear that you can simply put these expenses while you are doing your tax returns by the end of the tax year. Ensure to keep the invoices and other proofs to make them evident. A bank statement is also one such piece of evidence.
5- Travel and Fuel Tax Deductions for DJs
One of the biggest costs is considered to be the amount of money you spend on travel and fuel. This will be because you tend to meet new clients and then travel for your performances with the night stay at hotels. The good news again is that you can claim the cost like the charges for a hotel stay, fuel, and others. However, you are not allowed to include the amount spent on travelling from home to work and back. When you are commuting to your business premises, you can not add the expenses of fuel.
In some cases, people merge the expenses when they travel for such cause that involves business and personal reasons. Make sure you can separate both types of costs by accurate calculations to get it approved while you are claiming it.
6- Costumes and Performance Clothing
The costumes, uniforms, or protective clothing you use while performing are some of the expenses that are allowed to deduct from the tax-deductible expenses. However, in the case of regular clothing or fancy dresses that you are purchasing for a routine, these expenses will not be added to the list of costs that can be claimed with tax returns. This is because such purchases are not relevant to your business but to your day-to-day living.
The Bottom Line
Now that you have gathered a fair amount of information about tax deductions for DJs, we can say that the common tax deductions for the DJs in the UK are helpful to carry out the business as a beginner and self-employed individuals. However, you will have to be vigilant about the pieces of evidence to prove that the cost is purely related to the business purpose and that there is no personal element of benefit involved. We hope these few minutes of reading will help you to handle your tax deductions and cost balance in a professional way. You can always seek expert help to handle your tax affairs if you are a beginner and need help in this regard.
Call or request a callback to speak to one of our professionals to discuss your queries about your queries. We are available from 9:00 am – 05:30 pm Monday to Friday.
Disclaimer: The information about the tax deductions for DJs is provided in this article including text and graphics. It does not intend to disregard any of the professional advice.