DJs pay tax

Tim Robbins

Hi,
Do DJs pay Tax? Or are they covered under Artist's exemption?
I suspect only big names pay it.
comments...

djdeclan

We are not covered in any way shape or form by artists exemption, I have looked into this and it does not (and cannot be made to) apply to what we do.
From my own perspective I pay tax on the money I make fom gigs, less my expenditure on cds, diesel, phone bill etc etc.
The revenue commissioners are currently actively targeting DJs so if you aren't registered to pay tax theres a good chance you will be caught (unless you are only doing parties for your mates).
There are plenty of ways you can be caught:
Through your advertising
Through your agent (if you have one)
Through a venue you have worked in
I was talking to an agent earlier this year who told me that one of his DJs was hit with a €15k tax bill; if you have a liability from a previous year you will have interest and penalties on the original sum of tax - often, depending on how far back you have undeclared earnings, the interest and penalties can be up to 200% of the original tax liability.
So if you're not registered now might be a good time to think about doing it.
If anyone needs any help with sorting out their tax pm me, I'm an accountant by day so I'll be able to sort you out.

Run_to_da_hills

Keep every reciept including Diesel, repairs to van, meals, cd,s equipment, advertising, and even your dog food for your family pet (used as a guard dog to protect your equipment). etc. A good account can write a lot of expenditure from your earnings.

Run_to_da_hills

Run_to_da_hills wrote: »

even your dog food for your family pet (used as a guard dog to protect your equipment).

Of course, a dog is handy if you need anything done with the woofers...

Arf arf.

Run_to_da_hills

Deleted User wrote: »

Of course, a dog is handy if you need anything done with the woofers...

Arf arf.

You could also keep a couple of canaries to sort out the tweeters :pac::pac:

run_Forrest_run

Run_to_da_hills wrote: »

You could also keep a couple of canaries to sort out the tweeters :pac::pac:

ah stop now;)

jonny68

i think you'll find quite a lot of DJ's especially some of the bigger names will not declare half their earnings to the tax man and why shou,d they when they would no doubt get taxed to the hilt,there are many many DJ's who play clubs,. in fact most proper dance dj's who probably have day jobs who are highly unlikely to tell the revenue c***s (they recently stung me for a €1,800 bill but that's nothing to do with dj,ing:()

Lenny

Yea I owe the revenue about 600 quid aswell, dono how it happened.
sure didn't robbie butler get caught there a while back and owe over 15k to the revneue.

deevey

We are not covered in any way shape or form by artists exemption, I have looked into this and it does not (and cannot be made to) apply to what we do.

Surely if you mix and mash it up enough (samples / Ableton etc) you would fall into the electronic artists category rather than just dj ?, Im not talking about doing wedding type gigs here obviously.

djdeclan

deevey wrote: »

Surely if you mix and mash it up enough (samples / Ableton etc) you would fall into the electronic artists category rather than just dj ?, Im not talking about doing wedding type gigs here obviously.

Sorry man, afraid not. I went through this with a tax consultant (always knew moving in with one would come in handy at some stage!) and its a no go.
The principle of the artists exemption is that it is based on copyrighted work and profits derived thereon.
So unless you are making all your own music, copyrighting it, and playing ONLY that music then you cannot avail of the artists exemption.

As far as I can remember it doesn't cover live performances, only cd sales etc. But I could be wrong on that bit.
So the message is lads, if you're not paying tax; start!
Theres no reason why some of us should pay tax on our income while others continually dodge it, if you are only small time you'll probably have very little to pay when you allow for your expenses and capital allowances on your equipment.
As I said the revenue are out to get DJs at the minute so either get legal or be careful!

deevey

Oh I do know that they are out for DJ's .. but I did mean pretty much the "live" element e.g. remixing tunes on the fly all night through a set....as this "should" be considered as sampling and artistry, (if not daft punk would not be artists!).

Love for some Jock to take it up with revenue sometime in the future ... as i said .. im not talking back2back mixing here .. but Morso the remixing of tunes on the fly with the likes of Ableton.... so if these live remixes were copyrighted (which any original recording you make automatically is) .. they would then be exempt ... (abiet pending sample clearance from the original artist)?

djdeclan wrote: »

Sorry man, afraid not. I went through this with a tax consultant (always knew moving in with one would come in handy at some stage!) and its a no go.
The principle of the artists exemption is that it is based on copyrighted work and profits derived thereon.
So unless you are making all your own music, copyrighting it, and playing ONLY that music then you cannot avail of the artists exemption.

As far as I can remember it doesn't cover live performances, only cd sales etc. But I could be wrong on that bit.
So the message is lads, if you're not paying tax; start!
Theres no reason why some of us should pay tax on our income while others continually dodge it, if you are only small time you'll probably have very little to pay when you allow for your expenses and capital allowances on your equipment.
As I said the revenue are out to get DJs at the minute so either get legal or be careful!

KoRn101

djdeclan wrote: »

I'm an accountant by day

BATMAN BY NIGHT!!!

Thats insane though, so once you're making money from sets you HAVE to pay tax, regardless of the amount you have made?

Are most sets not paid by brown envelope sort of thing though... ?

djdeclan

KoRn101 wrote: »

Thats insane though, so once you're making money from sets you HAVE to pay tax, regardless of the amount you have made?

Are most sets not paid by brown envelope sort of thing though... ?

It depends really; if you invoice the venue (which I have to do for most of my bar/club gigs) you have to declare that money for tax.
If you get paid "by brown envelope" then its up to yourself.. At the end of the day if you don't then you are evading tax and thus breaking the law..

Theres nothing insane about it; you are making money the same as the guy who owns the corner shop, he pays tax on his profits... Why shouldn't you?

KoRn101

I realise what you're saying, however at the same time it seems insane that a DJ who is making music and so on, is not catagorised under the artists exemption..

I understand and agree that tax should most certainly be paid by everyone! But surely an artists exemption should be introduced for Dj's no?

Run_to_da_hills

KoRn101 wrote: »

I realise what you're saying, however at the same time it seems insane that a DJ who is making music and so on, is not catagorised under the artists exemption..

I understand and agree that tax should most certainly be paid by everyone! But surely an artists exemption should be introduced for Dj's no?

Vinyl Dj's should be exempt from tax because using decks is an art :pac::pac::pac:

deevey

The principle of the artists exemption is that it is based on copyrighted work and profits derived thereon.
So unless you are making all your own music, copyrighting it, and playing ONLY that music then you cannot avail of the artists exemption.

And how would a Boyband such as westlife who play covers of already copyright material get away with it ? the "ONLY that music" rule goes out the window.

Also how do these bands / artists like Britney etc... get away with not singing live (dat tapes anyone).

Sample sample sample sample sample sample etc ........ bring a keyboard / laptop and other mad techhie gear, record your sets each time and technically its copyrighted material and you are producing live, and surely that would have to be seen that way by revenue (or at least arguable).

I don't see how an artists exemption could or SHOULD apply to run of the mill wedding/funeral/bar mitzvah dj's... realistically they are just a jukebox with a voice (and seriously no offence intended to those who do), but that would be like classing a formula1 driver against joe soap stuck on the M50 at 5pm.

djdeclan

Section 195 of the Taxes Consolidation Act 1997 allows the Revenue Commissioners to make a determination that certain artistic works are original and creative works generally recognised as having cultural or artistic merit. Accordingly, earnings derived from these works are exempt from income tax from the year in which the claim is made.

Guidelines have been drawn up by for determining whether a work is an "original and creative" work and whether it has or is generally recognised as having cultural or artistic merit. The Revenue Commissioners may, having regard to the Guidelines, consult with a person or group of people who may help them in reaching decisions in relation to Artists Exemption.

The Revenue Commissioners can make determinations in respect of artistic works in the following categories:

Books or other forms of writing
Plays
Musical compositions
Paintings or other similar pictures
Sculptures.

To clarify what this means

If you have composed a piece of music which is deemed to be "Original and creative" then Royalties received on that composition are tax free.

Thus Westlife are NOT covered by artists exemption, Profits from live performances of such compositions ARE NOT covered by the artists exemption.

Thus, if a DJ produces a track, applies to the revenue commissioners to have it classified as original and creative, and succeeds; any royalties he receives from cd sales etc will be tax free... Any profits he makes from gigging will be fully taxable.

I hope this clears the issue up.

KoRn101

Actually it does! Cheers big man!