Self-Employment Guide for DJs: Managing Accounts, Taxes, and Expenses

DJs are typically self-employed, that means they are their own employer and responsible for managing their own finances and taxes. There are many benefits to being a self employed DJ but there are some important financial planning and administration concerns to overcome. Here in this blog we walk you through the essential steps you need to take when it comes to tax, regulations, expenses, insurances and financial planning.

It's important to state that this is not financial advice and you should consult with a financial planner and accountant to make sure you're following the latest regulations and avoiding any risk. Please treat this blog as an overview to help you understand the basics but not legal advice.

1. Register as a Self-Employed DJ

If you're a new DJ and you're starting to get paid DJ work you should consider registering as self employed with HMRC. This is known as becoming a sole trader, it's like a one-person business but all your financials are run through your personal tax account. As a sole trader you'll need to pay tax on your profits. As a DJ you will be receiving money for your performances and you'll need to pay tax on this income if it's above the current £1000 tax-free trading allowance.

‍If you anticipate that you'll surpass £1000 of DJ income within any financial year you should register as self employed and submit a tax return.

Remember, the annual £1000 tax-free trading allowance covers all your side hustles, not just DJing, so if you've already made some money selling something on eBay or Vinted, made some money in stocks and shares outside of an ISA, or perhaps made some other self employed income you'll need to add that to the total.

An alternative option is to start a limited company. It's important to understand the difference between being a sole trader and running a limited company. A limited company is treated at its own financial entity, separate from you, like another person. You may own the company but its separate to you financially. The major benefit of running a limited company is to manage risk.

For example, let's say that you own a house or an expensive car and you're a DJ. As a self-employed sole trader DJ you might perform a gig at an expensive hotel and your DJ equipment suddenly catches fire! The hotel sustains fire damage and will chase you for damages. Let's say your insurance won't cover the damage. This means that the hotel can sue you, and you might lose your house and your car in the process. This is a major risk! Perhaps better insurance would solve the problem but it's still a potential disaster. Everyone knows that insurance companies always try and find ways not to pay out!

If instead you had a limited company and organised all your DJ gigs through the limited company you'll essentially be employed by your company and separate to it. Let's say the fire happened and the hotel chases your limited company for the money and your company has £1000 in the bank account. They will likely flush you out and drain all of that money and your company would close (liquidate). However, your house and expensive car cannot be taken away from you to pay the companies debts as you are separate to the limited company. In essence, your risk is limited to whatever is inside the company or owned by the company, hence the name 'limited' company.

DJs and businesses people use companies to ring-fence their financial risk and protect their own assets. This is typically something bigger DJs might do but many new DJs go the self-employed route and just cover themselves with good insurance and good practice. Nobody wants to burn down a hotel anyway! For the purposes of this blog we will focus on the self employed DJs.

How to Register as a Sole Trader DJ

If you are considering registering as a self employed DJ (sole trader) you can do this yourself on the HMRC website here. However, if you're not confident filling in the forms yourself and submitting tax returns you should consider hiring a qualified accountant. Once registered you will be legally required to complete a Self Assessment tax return annually and pay any taxes due. Failure to complete the paperwork and pay bills on time will result in fines.

1. Make sure you have a national insurance number and UK address
2. Go to the HMRC website and create a Government Gateway account.
3. After registration, HMRC will send you a Unique Taxpayer Reference (UTR), which you'll need for filing your taxes.

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2. Tax for DJs: A Simple Guide

As a self employed DJ you need to keep detailed financial records to help you accurately fill in your self assessment tax return and claim back relevant expenses. Unlike people who work for a company on a PAYE scheme (Pay As You Earn) self employed DJs can claim back expenses which will lower their tax burden. Self employment tax calculations are based on the profit you make, this is the amount of money left after your allowable expenses.

The deadline for the online submission of your tax return is the 31st of January for the previous tax year (which runs from 6 April to 5 April). Keep accurate records of all income and expenses for each tax year to help you fill in your tax return.

For example, within your financial year you earned £10,000 from DJ gigs. You spent £3,000 on DJ equipment, £1,000 on transport to gigs, £300 on insurance, £250 on music and £500 on other business-related expenses. Your profit for the year after these costs comes to £4,950. This is the figure that you will be taxed on based on your tax band and other income.

Keep records of everything you spend money on in relation to your DJ business and records of any income sources. Receipts, invoices, emails and any kind of paper trail needs to be preserved and stored incase you need to provide proof to HMRC.

The UK uses a tax band system. The more money you earn, the more tax you pay. As of the 2024/2025 tax year, the tax bands for England, Wales, and Northern Ireland are as follows:

Personal Allowance: £12,750 (This is the amount you can earn without paying any tax)
Basic Rate: £12,571 to £50,270: 20% on income within this band
Higher Rate: £50,271 to £125,140: 40% on income within this band
Additional Rate: Over £125,140: 45% on income over this threshold

With our example of making £4950 profit after expenses you wouldn't have to pay any tax as it would fall into the tax-free allowance. However, if you also have a part time job to support your DJ career this number would be added to your overall income to calculate your tax payment. You can enter additional income sources on your self employment tax return.

Make sure that you put aside around 10-30% of your income each month into a savings account to pay your yearly tax bill. You don't want to spend all of your money and then not be able to pay the bill!

National Insurance Contributions (NICs)

In addition to your income tax, you must pay Class 2 NICs if your profits are over £12,570 a year. If your profits exceed £50,270 a year you may need to pay Class 4 NICs. National Insurance is money collected by the government to fund various social security benefits, including the state pension, unemployment benefits, and other welfare programs.

Pensions for DJs

If you're a self employed DJ you should also consider putting aside some of your income into a private pension. In the UK, there is a massive tax incentive offered for those who save for their retirement. You can deduct your pension contributions from your profit (up to £60,000 annually). This means you'll reduce your profit and pay less tax. You're essentially moving the profit into a pension which you can then get back when you retire. Please note that you do pay tax when you withdraw your pension. It's hard to avoid tax! However, this is till a good idea because the money you put into your pension is invested and will accumulate over time. By the time you retire it will be worth a lot more.

Should DJs Register for VAT?

VAT (Value Added Tax) is a 20% sales tax in the UK. The tax is charged by businesses and individuals to the consumer and then paid to the government on a quarterly basis. Self employed DJs need to register to pay VAT if they turnover more than £85,000 within a twelve month period. Most DJs do not meet this threshold so it's not necessary for most DJs to register for VAT. If you do need near this threshold you should consult a financial advisor and a qualified accountant about the next steps.

Admittedly, this process can be overwhelming for many DJs. If you need help we suggest hiring a qualified accountant. Although it will cost you money, it will save your stress and their costs are an allowable expense. Accountants will often be able to save you more money than they cost because they know all the rules and help you claim all the allowable expenses you are entitled to. Consider hiring an accountant a wise investment.

3. Claimable Expenses for DJs

No one wants to pay more tax than they need to. You can reduce your tax bill by claiming for all the legitimate expenses HMRC allow you to deduct from your profit. Here's an example of some allowable expenses but consult an accountant or financial advisor for an accurate list.

DJ Equipment: Claim for any DJ equipment you need to practice with at home or perform your gigs. This includes hardware and software, subscriptions and second-hand purchases.

Travel Costs: Claim for any travel expenses related to your DJ gigs and meetings, this can include train tickets, flights, taxis, fuel, parking and more.

Hotel Costs: If you're DJing abroad you can claim for hotel expenses.

Studio & Office Costs: Most DJs practice at home and have a home office. You can claim for any office equipment, computers, printers, stationary or furniture along as a percentage of your rent, utility bills, internet, insurance, service charge and phone costs.

Stage Costumes: If your DJ performance includes costumes and any other theming you can claim for these costs.

Event Costs: Many DJs will also run their own events so anything related to the cost of running an event can be claimed for including venue hire, security costs, licensing costs, stock, flyers and more.

Training & Courses: Claim for any course that helps you with your DJ career, this could include DJ tuition, music production courses, business courses etc.

Accounting & Professional Services: Need an accountant, consultant or lawyer? Make sure you claim for any professional services related to your business.

Networking & Seminars: Claim to travel, accommodation and ticket costs for industry networking events or seminars

Trade Journals: Do you need a subscription to an industry news service like Mixmag? Perhaps you read DJ magazine. This is also an allowable expense.

Meeting Expenses: DJs will often spend a lot of time meeting promoters and venue managers. You can claim travel expenses to these meetings and also and food or drink that you buy for yourself when you're not home at these meetings. The cost has to be sensible so if your meeting is about a £50 DJ gig don't order that £70 steak, perhaps just take a coffee. You cannot claim for meals and drinks you have at home, even if you have a home office.

Insurance: Claim for your business-related insurance like equipment cover, public liability insurance and insurance for vehicle if you need it to drive your equipment from gig to gig.

Content Creation Costs: Modern DJs need to spend a lot of time marketing themselves online. Claim for DJ Photoshoots, graphic design, merchandise, videography and anything related to content creation like cameras, lighting and venue hire.

Website Costs: Many DJs will need a professional website to advertise their business. You can claim for the design, domain and hosting of your website.

Marking & Promotion: Many DJs will spend money advertising online including pay-per-click advertising, sponsored posted, playlisting etc. Click here to find out if you should be paying to advertise your DJ business.

Music Subscriptions: DJs can claim for buying or streaming music and samples or plug-ins. DJ software, music production subscriptions and anything business related can be claimed for.

Trademarks: If you want to protect your IP you can register a trademark.

Licensing: If you need a license related to your DJ business you can claim for its costs. Click here to find out if you need a DJ license.

Hearing Protection: You can claim for hearing protection like ear plugs and ear exams.

Remember, this article is not financial advice and is intended as a basic guide for new self employed and aspiring DJs. You must find a qualified accountant and/or financial advisor for accurate legal advice.

4. Tips For Managing Your Self Employed DJ Accounts

If you're going to register as a self employed DJ you need to start keeping accurate records from the get go. This includes details of all your income and expenditure. You will be using this information to fill in your annual tax return and then you'll be required to keep it on file for a minimum of five years. HMRC do spot checks and might ask you for information from a previous tax year. If you fail to keep your records organised you could be fined.

To help you organise your DJ business accounts we recommend you start using some accounting software or work with a qualified accountant. popular choices include QuickBooks, Xero, or FreeAgent.

It's also easier if you separate your personal income and expenditure from your DJ business by opening an additional bank account. Have one for your personal stuff and one for your DJ business. In addition, consider opening a business savings account to put your tax aside for your next tax bill. We recommend to put 20-30% of your DJ income into the savings account to pay your tax bill. If your business savings account earns your money some interest this can offset some of your tax but remember you also pay tax on interest you have earned.

5. Growing Your DJ Business

Now you've established your DJ business as a self employed DJ you'll want to focus on growth. One of the best ways to grow your business is to promote and diversifying. Consider these options to help you grow the income you can generate.

DJ Training: Take training courses to improve your skills and worth as a DJ booking. Our one-to-one advanced DJ courses are the perfect way for DJs to upgrade their DJ and performance skills while accessing industry opportunities like DJ gigs.

Music Production: Many DJs will learn how to produce their own original tracks and remixes. These tracks can then be used to promote them as artists, gain more fans and followers and provide a second income through streams and record sales. Consider learning how to produce.

Running Events: Another excellent way that DJs can earn a second income is by running their own events. This is a win-win situation for DJs because having your own club night or festival can help you network within the industry, gain more exposure and earn another income through ticket sales. Find out more about the DJ-production-promoter triangle by clicking here.

Collaborations & Sponsorships: Collaborations with other DJs, club nights, music festivals and brands can help you reach bigger audiences. Growing your profiles and follower base will convert into more bookings and income.

Get More DJ Gigs: The main way that independent DJs can grow their DJ income is to get more DJ gigs. Click here to find out how to get more DJ work.

One major goal of new DJs is to become financially independent. Your DJ business may allow this but you should always plan and prepare for the future. Try not to put all your eggs in one basket and find other ways to invest. One of the best investments in the UK is to make use of a Stocks & Shares ISA which allows you to invest £20,000 per tax year into a Stocks & Shares account. Any interest or capital gains made within this investment is tax free. It's similar to having a pension but you can access the money without penalty at anytime. Remember, the value of stocks are shares can increase and decrease and it's considered a risky investment. Always consult a financial planner and remember this is not financial advice.

Conclusion

If you're starting to get paid DJ gigs and are projected to earn more than £1000 you need to consider registering as self employed. We hope you found this guide helpful but we reiterate the important of seeking professional advice from a qualified accountant or financial advisor.

Run your DJ career like a business and learn about tax structures and expenses to help you avoid overpaying. If you're organised from the start you'll save yourself a lot of time and stress when it comes to filing your self assessment tax return.

Don't forget that you should also focus on growing your income as a DJ using multiple streams of revenue. Take some time to write a business plan and create a workable framework for you to manage the paperwork. Tax and financial planning can be boring compared to DJing in front of a live audience but it's all part of a successful DJ business.