Resolutions for 2017?

[Imagine]

OK, we've still got many parties to go between us, and it's still 41 sleeps until Christmas....but I'm well and truly working on next year already :)

Soooo....what are YOUR New Year's resolutions for next year?

Mine?

* To continue to look into ways of making the job easier (i.e. quicker setup times)
* To spend less (I already have more than enough gear...I really don't need any more!
* To double turnover AND profit (I'm already over halfway booked for next year which is new to me)
* To turn the business into something I can live off
* To go to BPM in September and actually go to an eatery and get drunken in Broad Street!

How am I going to get there?

* Well the retro-fit of WiFi is going well. I've got a LOT of fixtures still to go, but hey....January's looking quiet(ish) at the moment. My current set up from actually getting in is around 30 mins...I'd LOVE to get this to 20. Pack down is around the same at the moment.
* I'm going to ditch CDPool for Promo Only (that's already £220 pa saved!). Equipment costs are going to be literally replacement only...there is NOTHING else I need gear wise.
* The holy grail. I learned a harsh lesson this year with a couple of months of no work due to complacency on the SEO side of things. I've worked bl:Censored:y hard this year to make sure that doesn't happen again. I've already got half of this year's turnover in the bag for next year :) (and I've finally matched last year's turnover despite the dead couple of months). I've increased my prices for next year and still getting a LOT of bookings. There's scope for another £100 a night yet :)
* This one is a long term plan. I've now got everything I need and my current full time job has another 18 months to run. The beauty here is that my FT job is now based working from home....and there isn't a lot of work to do (it's a complicated story but involves the bosses keeping the company going until the youngest reaches 60 in Aug 2018...I'm in essence being paid to...well...just be there). This means that I can plough an awful lot of time into the disco and it's actually reaping rewards. In 18 month's time....I'll be a full time DJ :)
* I think I'll at least have Peter's backing on this one ;)


So in a nutshell, my plans are to consolidate what I do, do it better, quicker and easier, and to make the bank manager (aka Mrs Imagine) even happier that I don't see her of an evening ;)

Over to you :)

[Excalibur]

Soooo....what are YOUR New Year's resolutions for next year?

Mine?

* To go to BPM in September and actually go to an eatery and get drunken in Broad Street!

* I think I'll at least have Peter's backing on this one ;)



Don't get me started. :mad::mad::mad::mad::mad: :zip::zip::zip:

[Nakatomi]

My only real resolution is this:

Get my own gigs & BE A MOBILE DJ! ( and by association spend more time at home).

That & I've resolved to stop taking other people's repairs in.

Until the first point is achieved I'm working to rule. Taking no more than I need & only providing a show worthy of the fee. So 2 lights & 2 speakers basically. Why should I be adding an extra hour's work?

NB what I actually do will remain the same but I'm damned if I'm staying back til 1am derigging

[ppentertainments]

My main business resolution is to only do 1/3 of the discos I am currently doing myself. Aim is to eventually only do a handful of discos a year myself, however I now have a few great DJs working for me.

I intend to be as busy, just doing non-disco work.

[DazzyD]

My main business resolution is to only do 1/3 of the discos I am currently doing myself. Aim is to eventually only do a handful of discos a year myself, however I now have a few great DJs working for me.

I intend to be as busy, just doing non-disco work.

Good to see you got sorted out on that front! :)

[ppentertainments]

Good to see you got sorted out on that front! :)
Long hard slog, only drawback is they also have 'proper jobs', so have to check shifts etc.

[Jim - Scotland's Party DJ]

Pay less tax than this year :o

Stop doing "diary fillers" - I don't do them often but now and again I find myself at a gig for an agent or pal thinking "why am I out for a 3rd of my usual price just to be out of the house?"

[Excalibur]

now and again I find myself at a gig for an agent or pal thinking "why am I out for a 3rd of my usual price just to be out of the house?"


Jim, have you ever seen what passes for entertainment on TV on a Saturday night? :confused:I'm considering paying people to let me do gigs!!

[Jim - Scotland's Party DJ]

Jim, have you ever seen what passes for entertainment on TV on a Saturday night? :confused:I'm considering paying people to let me do gigs!!


Spoken like someone who doesn't have a hot tub out the back and gallons of aldi prossecco within shouting distance :D

My tax thing is actually a serious one - I got hammered with a bill the other week as, alongside the teaching salary, I'm now very much in the 40% tax bracket. A first world problem by all means but it sucks to work my balls off and come away with the similar kind of take home as a sid charging buttons.

So - no more cheap gigs - if I'm going to end up paying out a fortune on gigs, I'm not starting off cheap, and ideally I'll pull in 5-10 more bookings per year off my own steam and push me far enough into the 40% bracket that the dunt isn't as hard to stomach next year.

[Excalibur]

Spoken like someone who doesn't have a hot tub out the back and gallons of aldi prossecco within shouting distance :D
I haven't even got a hot tub inside the house. :( With the cost of heating water, I'm lucky if I get a cold shower once a month, whether I need one or not. ;)


My tax thing is actually a serious one - I got hammered with a bill the other week as, alongside the teaching salary, I'm now very much in the 40% tax bracket.

OK Peter, be serious.
Jim, if you haven't already got one, I'd advise getting an accountant. They're always a good idea, especially if you already have a full time job paying a living wage or more. They'll tell you what you can offset against tax. Does the Disco need a nice shiny new van? :whistle: :)

[ukpartydj]

My tax thing is actually a serious one - I got hammered with a bill the other week as, alongside the teaching salary, I'm now very much in the 40% tax bracket. A first world problem by all means but it sucks to work my balls off and come away with the similar kind of take home as a sid charging buttons.

So - no more cheap gigs - if I'm going to end up paying out a fortune on gigs, I'm not starting off cheap, and ideally I'll pull in 5-10 more bookings per year off my own steam and push me far enough into the 40% bracket that the dunt isn't as hard to stomach next year.

Why don't you just buy stuff when you get close to the tax bracket? It costs about £6400 more if you go over... I'm sure you could invest and write it off against tax to keep below... Or are you that far over? Haha.

Also what kind of sid earns £30k? One that works 5 nights a week every week?

[Imagine]

Don't get me started. :mad::mad::mad::mad::mad: :zip::zip::zip:

Not meant to wind you up Peter. I'm all for staying in the same Travelodge next year and NOT going to the after-party. Like you, I'd rather drink proper beer and eat a curry. Who else is "IN"?????


Jim, have you ever seen what passes for entertainment on TV on a Saturday night? :confused:I'm considering paying people to let me do gigs!!

Me too. I was off last Saturday and again next Saturday (I'm doing Friday nights for some reason so not all bad). Strictly, X-Factor or reach for a razor blade...I need to work more Saturday nights...it was horrible!


I haven't even got a hot tub inside the house. :( With the cost of heating water, I'm lucky if I get a cold shower once a month, whether I need one or not.

OK Peter, be serious.
Jim, if you haven't already got one, I'd advise getting an accountant. They're always a good idea, especially if you already have a full time job paying a living wage or more. They'll tell you what you can offset against tax. Does the Disco need a nice shiny new van? :whistle: :)

Eeeeee Lad...we're on t'same wavelength! :)

But...do you mean shiny as in bright yellow like yours?

In all seriousness though...a decent accountant is what's needed. I too (with the current full time job) hit that "magical" 40k threshold. And I'm actually in a bit of a dilemma which I need to discuss with said accountant. What's worse is the savings account. If I just did my FT job...no questions asked and taxed at standard rate. Because I work my gentleman veggies off and declare everything...my half of any interest is well and truly clobbered! (makes you wonder if it's worth being legit....note Steve...this is tongue in cheek!!!)

Is there a way of chucking the disco income into a pension without penalties?
Do I really need to buy more kit that I don't really need?

In 18 months, my situation will be a lot different. Until then though...I really don't want to be paying more than I need to

[DazzyD]

Why don't you just buy stuff when you get close to the tax bracket? It costs about £6400 more if you go over... I'm sure you could invest and write it off against tax to keep below... Or are you that far over? Haha.

Also what kind of sid earns £30k? One that works 5 nights a week every week?

At £60 a night, working every night would still see Sid £10k under the 40% bracket!

[Corabar Steve]

Not meant to wind you up Peter. I'm all for staying in the same Travelodge next year and NOT going to the after-party. Like you, I'd rather drink proper beer and eat a curry. Who else is "IN"?????

I could cheerfully have stayed in the pub.

[Imagine]

I could cheerfully have stayed in the pub.

Great minds think alike then Steve (although we really MUST work out how to get from Broad Street to New Street without taking two hours to get there next time.....it's either that or you and Angela head our way).

I've also got to get an ePipe instead of my massive eCig....it just looks classier ;)
Do they make those things to work sub ohm?

[Corabar Steve]

Great minds think alike then Steve (although we really MUST work out how to get from Broad Street to New Street without taking two hours to get there next time.....it's either that or you and Angela head our way)
Or you stay where we did


I've also got to get an ePipe instead of my massive eCig....it just looks classier ;)
Do they make those things to work sub ohm?
Not like mine, but there is this beast
http://www.smoktech.com/kit/guardian-iii-kit

I've got these 3
http://epuffer.co.uk/e-pipes/

[Steven]

Why don't you just buy stuff when you get close to the tax bracket? It costs about £6400 more if you go over... I'm sure you could invest and write it off against tax to keep below... Or are you that far over? Haha.

Also what kind of sid earns £30k? One that works 5 nights a week every week?

Not sure you understand how the tax brackets work, you only pay 40% on anything earned over the threshold not on the whole income. so if you earn £1 more than the threshold you pay 20% up to the threshold and then 40p on that extra £.

My resolutions this year is to stop letting my diary just be filled up by the res, get my new site live before new year this year and get at least 15 £350+ bookings through it.

And work a lot less.

[ukpartydj]

Not sure you understand how the tax brackets work, you only pay 40% on anything earned over the threshold not on the whole income. so if you earn £1 more than the threshold you pay 20% up to the threshold and then 40p on that extra £.

My resolutions this year is to stop letting my diary just be filled up by the res, get my new site live before new year this year and get at least 15 £350+ bookings through it.

And work a lot less.

You'd be correct, I thought going over the bracket meant you're charged at 40% for all income over the taxable income amount. That does seem fairer. Maybe I'm confusing it with VAT where going over on that would potentially cost more if only by a small amount.

I have quite the opposite problem, year on year I keep buying more and more to improve my business and I'm barely paying any tax... One day when I stop buying I'll get a nasty tax bill!

[funkymook]

I have quite the opposite problem, year on year I keep buying more and more to improve my business and I'm barely paying any tax... One day when I stop buying I'll get a nasty tax bill!

I’m sure we’ve all done that, but are the purchases really improving business if they're not bringing more revenue in?

[Nakatomi]

I’m sure we’ve all done that, but are the purchases really improving business if they're not bringing more revenue in?

Do what I did. As far as you can, estimate how much time you spend doing all your business. Take your profit & divide that by the work hours to arrive at your hourly rate.

A gross underestimate put my 1st tax year's earnings at under £3.50 an hour. Pretty awful but if you keep spending money to avoid paying tax you'll never make any money at all!

I'm not buying ANY more gear til next April unless something breaks catastrophically.

[ukpartydj]

I’m sure we’ve all done that, but are the purchases really improving business if they're not bringing more revenue in?

Oh yes, I haven't just spanked £thousands on upgrading something which will yield little return. This year I bought 2 dance floors one of which is a 22x22ft starlit one... So my new years resolution is to knock my fiancée off the breadwinners throne as she's been their for 4 years!

[Jim - Scotland's Party DJ]

I'm not in the business of just buying stuff for the sake of keeping my tax low - I know guys who do and fair play to them but I don't need a sparkly new lighting rig every year - I'd rather make more profit even if it means more tax.

I coooooooooooooooooooouuuuuuuuuuuuullllllllllllllld be doing with a new mode of transportation in the next 12 months right enough. :confused:

[ppentertainments]

I'm not in the business of just buying stuff for the sake of keeping my tax low
Admittedly I do not have a business head at all, but can never see the point. Any purchase (unless 100% tax deductible, if that is the right phrase) will still eat into your profits.

I just go along with what my accountant tells me as really am clueless with tax, but can still never get my head around people saying 'just bought a new light courtesy of the taxman' - how does that work ?

[Excalibur]

I’m sure we’ve all done that, but are the purchases really improving business if they're not bringing more revenue in?

Point of order, Mr Chairman. The choices in Jim's case appear to be to give money away with nothing in return, or do exactly the same and acquire shiny new toys. Not really a phone a friend question, is it? :whistle:



Seriously Jim, it's a balancing act. Buying so much stuff that it eats into your profits ( ie, doesn't bring in more than it cost ) isn't sound business practice.
Paying large amounts of money to the taxman without re-investing a sensible amount doesn't seem a lot better. Although it may leave you with a couple more quid in your pocket in the short term, it may mean your kit isn't up to the standard you'd aspire to.
Fine line to tread, but somewhere in the middle is the place to be.

[Nakatomi]

...can still never get my head around people saying 'just bought a new light courtesy of the taxman' - how does that work ?

My best guess (and it is still just a guess) is that without spending more money their taxable income would be just over a threshold where they'd pay more tax - so to avoid it they invest in new gear & it comes out of their AIA (annual investment allowance).

For my own 1st year, I could've spread the cost of all my equipment investment as capital allowances over 3 or 4 years but I don't see the point. The way I look at it is this: you either pay now, or pay later. I'll pay later thanks, though if I was anticipating a big increase in my fees (HA!) I'd opt to pay now instead.

My own accounting goes thusly: It's really very simple & without getting an (unaccountable) accountant involved I can't see how it'd be any different:

1. Tot up all the income.
2. Deduct equipment purchases (the full value), mileage at 45p per mile, sundry expenses (bits & bobs, maintenance. music, subscriptions etc), working from home allowances etc - then that leaves me with the profit I'm due to pay tax on because I earned it.

Alternatively I could become a limited company, pay myself a minimal amount (which I'd still have to pay tax on cos it's a second income & my primary income is over the income tax threshold) & keep the rest of the profit in the business as capital. Locked away like that you don't pay tax on it.

Other than that there are only (IMHO very shady) ideas which involve me paying a notional secretary or somesuch like my 'parent' company charging a fortune for 'hiring' me the gear.

Bottom line is, for me there's no use money being locked up in the company if I'm still gonna get taxed on it when I take it out in dividends.

... Or am I missing something fundamental?

I figure I can likely save tax (but how much? Now there's a question!) by changing from simple cash basis to full accounting but then that'll muddy the waters when it comes to my own transport - I mostly use MY van (not the company's) for commuting to my day job which will then be a taxable perk if the van belonged to the business.

I don't think accountants are doing anything astoundingly clever with your books really. HMRC are crystal clear what you're allowed to count as deductibles & how you go about calculating them. Any more off the top is going to be bordering on grey practises YOU are liable for if they misreport IMHO. Of course I could be wrong & I'm missing something crucial.

[ukpartydj]

My best guess (and it is still just a guess) is that without spending more money their taxable income would be just over a threshold where they'd pay more tax - so to avoid it they invest in new gear & it comes out of their AIA (annual investment allowance).

I think one way to consider a purchase is that it's 20% off if you earn over £10'600 or it's 40% off if you earn over £40'000. This probably is the reason why many businesses charge more for business products. With my new knowledge about the higher tax bracket I'm unsure how it'd be "free" though.

I always think re-investment done wisely is a very good idea. It only backfires when you need to prove to the mortgage man that you can afford this mortgage despite being very unaffordable earning only £11k on paper and that you just re-invest a lot.

[Nakatomi]

Yeah well I agree about reinvestment, but I don't see any purchases I have in mind right now improving my business other than being 'nice' or to save a little time - so I'm holding back til next April.

[Jim - Scotland's Party DJ]

Point of order, Mr Chairman. The choices in Jim's case appear to be to give money away with nothing in return, or do exactly the same and acquire shiny new toys. Not really a phone a friend question, is it? :whistle:



Seriously Jim, it's a balancing act. Buying so much stuff that it eats into your profits ( ie, doesn't bring in more than it cost ) isn't sound business practice.
Paying large amounts of money to the taxman without re-investing a sensible amount doesn't seem a lot better. Although it may leave you with a couple more quid in your pocket in the short term, it may mean your kit isn't up to the standard you'd aspire to.
Fine line to tread, but somewhere in the middle is the place to be.

I generally make at least one big purchase per year - imrunning an hk PA, 2 macbook pros, a liteconsole, good quality lighting and a denon mc6000 - my stuff isn't going to be obsolete anytime soon. I buy stuff as and when needed but spunking it all away is daft. if I'm making a sizeable profit (around £10k this year) on top of my day salary then I've just to suck it up.

[rth_discos]

Why is everyone keen to get the tax bill down to literally nothing? That means you've made no profit.

I'm very happy with a big tax bill. It means my take home was a decent amount.

The tax bill is only a percentage of your profit.

[ukpartydj]

Why is everyone keen to get the tax bill down to literally nothing? That means you've made no profit.

I'm very happy with a big tax bill. It means my take home was a decent amount.

The tax bill is only a percentage of your profit.

Well if you are going to be taxed on £10k it'll cost you £2k leaving you with £8k.
If you still have the £10k and buy something which likely can make you more money or won't depreicete you've saved £2k ... for now!

[rth_discos]

Well if you are going to be taxed on £10k it'll cost you £2k leaving you with £8k.
If you still have the £10k and buy something which likely can make you more money or won't depreicete you've saved £2k ... for now!

No, if you spend £2k, then you're left with £8k profit to be taxed on, which means you still have to pay £1,600 in tax, so you're now left with £6.4k.

[ukpartydj]

No, if you spend £2k, then you're left with £8k profit to be taxed on, which means you still have to pay £1,600 in tax, so you're now left with £6.4k.

I meant spend £10k, not £2k.

[rth_discos]

I meant spend £10k, not £2k.

If I spent £10k of money, I'd be wanting that to bring a significant return on investment in the following year, and therefore a BIG tax bill the following year.

If you're going this every year, where's the profit? And therefore, what's the point in working hard all year?

[ukpartydj]

If I spent £10k of money, I'd be wanting that to bring a significant return on investment in the following year, and therefore a BIG tax bill the following year.

If you're going this every year, where's the profit? And therefore, what's the point in working hard all year?

You're not wrong, it just depends on your goals. If the money isn't doing anything I'd rather invest it in something, save on tax and have something which can make money rather than stick it in the bank and earn bugger all interest and pay tax on it.

If you don't want to expand your business then not much point investing.

[Jim - Scotland's Party DJ]

You're not wrong, it just depends on your goals. If the money isn't doing anything I'd rather invest it in something, save on tax and have something which can make money rather than stick it in the bank and earn bugger all interest and pay tax on it.

If you don't want to expand your business then not much point investing.

The money keeps me in hot tub chemicals and nice holidays. :D

[mattydj50]

Tax is like death. Its going to happen, and you know its going to happen.

So, you can forecast, based on your projected income and expenditure, how much tax you will be expecting to opay each year. HMRC do too, that's why they have the two advance payments for each year. Its more likely to be the balancing payments that come as a bit of a surprise, but, if you can keep your accounts up ro date, then a rollong P&L, plus a rolling cash flow forecast should see you through.

As i have a full time day job, all of my DJ income is taxable so I can deal with it in this way.

Each month, I squirrel away a sum of money, based on my income for that month into a separate bank account called "tax fund". I always over egg so I cover myself. When I make a bigg(ish) purchase, I don't take money out of that account, so, once the P&L is done for the year, there ought to be enough saved away to more than cover the tax liability.

Now, I was lucky. The "day" company I work for saw it fit to send me on an accounting course back in 1993 which, I'm proud to say, that I passed the 3 year course with distinction, so I do have an advantage in the financial world, though I don't claim to be an expert and cannot offer financial advice, other than generalisation from experience.

My qualification (NVQ4) has now lapsed, and certain practices and rates have changed, but the general rules remain the same. Be prudent. Always err on the "right" side and account for everything.

If you have doubts about managing tax, find a recommended accountant and ask for advice. Its surprising how they can often save you their fee by some simple accounting techniques - legal I would add. HMRC can also advise on Tax Matters and have recently been offering on line seminars. My stepdaughter said her's (she runs her own hair salon) was very useful.

There are two ways of reducing your tax bill. Tax avoidance, which is legal, and tax evasion, which isn't.

My wife, through ill health, no longer works, so we have "invested" in the HMRC Marriage Allowance, details can be found here: Marriage Allowance - How it works (https://www.gov.uk/marriage-allowance/how-it-works)

Saves us a few quid each year.