Disclaimer: the advice given in this article assumes that you are operating as a mobile DJ in the UK on a self-employed basis as a Sole Trader. It does not necessarily apply to those who are in partnerships, Limited Liability Partnerships, Limited Companies or employed directly under PAYE, or who do not charge for their services. Do not rely on this advice. Satisfy yourself of the facts the apply to your particular business model and personal arrangements.
There are LOTS of myths in the mobile DJ world about the legalities of running a mobile disco business. Let's review some of the more common ones.
PRS/PPL Licences (known as PRS for Music since 2018)
REQUIRED (but not necessarily by you)
In 2018 the PRS and PPL entered a joint venture called PRS for Music in order to simplify the licencing of playing or performing music in public. Under the Copyrights, Designs and Patents Act 1988, permission is needed from the relevant copyright holders - those who create, record and publish music - in order to play or perform their music in public. The subsequent licence is called TheMusicLicence and this replaces dozens of variant predecessors.
1. If you are hired to play in a venue where the venue is charging for entry, the venue is responsible for ensuring that TheMusicLicence is in place for their intended purpose.
2. If you are hired to play at a private function, for example a wedding, which is not open to the public, then TheMusicLicence is not normally required as this is not considered to be playing to the public.
3. If you are hiring/using a venue and promoting your own event, you as the organiser are responsible for ensuring that TheMusicLicence is in place for your intended purpose. The venue may already have suitable licences but the onus is on you to check, and to provide the correct licences if they are not in place or are not suitable.
4. If you record and distribute your set (or any part thereof), for example to promote yourself on a website or to supply to a client as a keepsake CD or DVD, this activity needs to be licenced by PRS/PPL usually under a Limited Manufacture Licence and you are responsible for obtaining this.
ProDub Licence
MAY Be Required
Up until 2008 the PPL (Phonographic Performance Ltd) and MCPS (Mechanical-copyright Protection Society) issued a Digital DJ licence which governed how mobile DJs could store and use digital music for reward.
In 2008 this was replaced by the ProDub licence - a tiered one-time credits based licence allowing DJs to create digital copies of original media that they already own, such as CDs and vinyl.
Nowadays most music is bought as digital downloads, so no 'format conversion' is required and therefore not subject to ProDub. However, DJs 'ripping' music from CD or other media DO come under the ProDub licence conditions. There is an additional licence fee for 'ripping' karaoke tracks.
PLI (Public Liability Insurance)
Not Required
PLI is NOT a legal requirement but it is available cheaply and is a really good idea to carry. This Article explores PLI in detail
PAT (Portable Appliance Testing, or Combined Inspection and Testing)
Not Required
PAT is NOT a legal requirement in itself, but is a simple way to comply with Health & Safety Executive guidelines and workplace safety legislation. This Article explores PAT in detail
ELI (Employer's Liability Insurance)
MAY Be Required
ELI is a legal requirement for most UK businesses with at least one employee and the minimum cover required under UK law is £5 million. Hefty fines can be levied if insurance is not in place. ELI is provided as a benefit of some PLI policies and can easily (and relatively cheaply) be sourced if not. This is a tax deductible business expense.
How the "at least one employee" rule is defined can be debated but the general consensus is that a sole trader that works alone and never has help from anyone else (paid or unpaid) does not necessarily require ELI - yet many 'Sole Trader Insurance" policies INCLUDE ELI, so go figure! Be aware that unpaid help (for example, a friend helping carry equipment or a spouse who answers the business phone line on your behalf) would almost certainly make you an employer by the HSE definition, and therefore ELI is a good idea given its relative low cost (free with some PLI policies).
Health & Safety Law
Compliance REQUIRED
The Health & Safety at Work etc. Act 1974 and The Electricity at Work Regulations 1979 must be complied with by all businesses.
Income Tax
Compliance REQUIRED
You must register with HMRC as a Sole Trader as soon as it becomes clear that you are going to earn more than £1000 from self-employment in a 12 month period. This will allow HMRC to correctly calculate your income tax liability as well as collect the relevant Class 2 National Insurance contributions to help you quality for benefits in the future. As a Sole Trader you will need to file a self-assessment tax return every year.
If you are employed in another job and already paying tax, you can file this information with your tax return - these details are taken from your annual P60 supplied by your other employer.
If you are already registered self-employed and are branching out into supplying mobile discos, you will only need to tell HMRC of the new scope of your business at the next tax return submission.
Value-Added Tax (VAT)
Compliance REQUIRED
If your business turnover is more than £85,000 per year you MUST register for VAT. You MAY register for VAT at any turnover level if you think it will benefit your business to do so. As a VAT-registered business you must charge clients VAT (currently 20%) on your sales. However you can also reclaim the VAT paid on business expenses. If your customers tend to be other businesses, the VAT status should not concern them as they can also reclaim the VAT you charge them as a business expense. However if your customers tend to be mainly private individuals, the additional cost could put you at a competitive disadvantage against non-VAT-registered competitors.
Vehicle Insurance
The correct category of vehicle insurance is REQUIRED
A standard 'Social, Domestic and Pleasure (and/or Commuting)' insurance policy will probably not cover you if you are in an accident whilst carrying disco equipment to/from an event for which you are being paid. You should ensure that you choose the appropriate level of business use insurance and your insurance broker will be able to advise which is correct for you. There are four categories of business use for cars and vans - Class 1, Class 2, Class 3 and Commercial. In our experience most mobile disco sole traders have been advised to select Class 1 which in many cases is not much more expensive than SDP/C.
Further reading / reference points:
PPL/PRS TheMusicLicence - Website
MCPS/PPL Limited Manufacture Licence - FAQs
PRS for Music Produb Licence - Website
PLI - Article
PAT - Article
ELI - Government Website
Health & Safety at Work etc. Act 1974 - HSE Website
Electricity at Work Regulations 1979 - HSE Publication
Income Tax for Sole Traders - Government Website
VAT - Government Website
Vehicle Insurance Classes - AA Insurance (commercial) Website