T shirt printing advice, any money in it

[John Childs]

That’s standard accountant’s advice, which I’ve never fully understood.

Round figures here, so don’t pick me up on that, but…..

Spend £1,000. You are then allowed to depreciate that by 25% in the first year, so that’s £250 set against your profits. Tax of 25% on that £250 is £62.50.

So, the result is that you’ve spent £1,000 to avoid £62.50 in tax.

If you really need the kit to replace old gear, or to expand, then fair enough, take the benefits. But, as a tax avoidance measure, is it really worth it?

My opinion, no it isn’t. That £937.50 is better in my bank account.

[John Gregson]

Hi Mark, It all depends where your company is based or even who your customers are. I’ve been printing shirts now for well over 20 years and struggle to attain the same prices as 10 – 15 years ago.

In my opinion there’s little money in large t’shirt screen print runs but one off vinyl/heat press lettering or even sublimation seems quite profitable.

Cheers John

[Earl Smith]

I have a garment printing/embroidery shop. I do a lot of one off t-shirts. Yes it can be profitable BUT it takes up a lot of my time. My shop has been running for one year now (Yesterday) . My orders are getting larger and more work is coming in for my embroidery machine. The small one offs are now getting in the way. I dont turn them down but they do take up too much time which I have to dedicate to the larger orders. It takes the same time of computer work to design 1 shirt as 100. Then you have the problem with garment sizes, colours, chasing suppliers, wrong deliveries……
Is it worth it? Not if its going to get in the way of other business.
Earl….

[Dan Osterbery]

same as earl for me, started with magic touch system and a single head embroidery machine, now we run four head embroidery machine and the one offs are a pain, and not really worth the money!! But you have got to start somewhere, but i think like john id rather have the money in the bank or under the bed!!!!

regards
Dan

[Gordon Galloway]

You can make money with stag/hen nights. Most just want lettering.
Good site for t’s http://www.polo-shirts.co.uk

[Peter Normington]

We used to do tees etc, but found that we wasted a lot of time on people just wanting one or two items, and most of the time wasnt worth the effort. for the small profit.
its fine if you have bulk orders, and specialise, but we found that our time was best used doing more profitable things, like vehicle livery.
if you have some spare cash I would use it to make what you do most easier, or quicker, like upgrade your printer, or buy a laminator. etc

Peter

[Phill Fenton]

I hate to say it – but once again, I am forced to concede, that I reluctantly admit, that I actually agree with Peter 😕

[Peter Normington]

quote Phill:

I hate to say it – but once again, I am forced to concede, that I reluctantly admit, that I actually agree with Peter 😕

Phil
you are still my soulmate,
just to point out to others, I think we actually agree on most things.

Including that I am better looking than you 😀

Peter

[Phill Fenton]

(puppy-eyes)

[John Thomson]

quote John Childs:

That’s standard accountant’s advice, which I’ve never fully understood.

Round figures here, so don’t pick me up on that, but…..

Spend £1,000. You are then allowed to depreciate that by 25% in the first year, so that’s £250 set against your profits. Tax of 25% on that £250 is £62.50.

So, the result is that you’ve spent £1,000 to avoid £62.50 in tax.

If you really need the kit to replace old gear, or to expand, then fair enough, take the benefits. But, as a tax avoidance measure, is it really worth it?

My opinion, no it isn’t. That £937.50 is better in my bank account.

so if you stick £1000 in the bank for a year..you will get approx 0.1% interest on it ( if you are careful which account it is in)………..or in real terms £1.00 or you could buy a machine that even if it did nothing for 12 months would save you £62.50 in tax………so if you have £1000 that you have no other use for you would be £61.50 better off to have spent the money as opposed to bank it? and that assumes that you equipment never does any work in 12 months and therefore makes no profit.

Unless I am mistaken with interest rates as low as they are you can earn far more spending money than banking it?:roll:
what crazy times we live in?

john

[Peter Normington]

Yes john
But the £1000 will still be yours even if its under the bed, a machine in a years time will have depreciated to what? £500? or less

4% is still obtainable if you choose where to invest.

the rates are only relative, spending and investing are actually the same thing..
Peter

[John Thomson]

quote Peter Normington:

Yes john
But the £1000 will still be yours even if its under the bed, a machine in a years time will have depreciated to what? £500? or less

4% is still obtainable if you choose where to invest.

the rates are only relative, spending and investing are actually the same thing..
Peter

Fair point Peter…….but you get the drift…………. if a £1000 machine does not earn that £500 in a month then it is a poor choice.

and 4%………..investments can go down as well as up 😉

john

[John Childs]

quote John Thomson:

so if you stick £1000 in the bank for a year..you will get approx 0.1% interest on it ( if you are careful which account it is in)………..or in real terms £1.00 or you could buy a machine that even if it did nothing for 12 months would save you £62.50 in tax………so if you have £1000 that you have no other use for you would be £61.50 better off to have spent the money as opposed to bank it? and that assumes that you equipment never does any work in 12 months and therefore makes no profit.

Unless I am mistaken with interest rates as low as they are you can earn far more spending money than banking it?:roll:
what crazy times we live in?

Hi John.

I did say that if you actually need the machine it’s fair enough to spend. If it’s purely an attempt to save tax, then I think it’s wrong.

Buying a depreciating asset is never a good idea, unless you are positive that it can earn it’s cost.

[Steve Underhill]

well It may be different for me as I live in a seaside village, but at £12 plus for a T shirt and print that costs £1.50 =- £2.00 to produce i would say its quite profitable.
in the summer we can do up to £200 a day on T shirts and that’s all custom orders. last year nowhere near it.
also the other thing is if you are selling off the shelf designs, screen printed transfers reduce your costs even more, plastisol is way cheaper than vinyl.

[John Cooper]

We churn out quite a few shirts both embroidered and more recently heat pressed vinyl using the Gerber.

Most of our orders are ‘short runs’ maybe 6 of the same design and quite often we’re asked for one offs. We NEVER turn business away.

We work from home (garage) but interestingly we recently visited the shop run by the guy who services our embroidery machine. The shop is quite small, packed with stuff and located on a fairly busy high street in a valleys town.

I was amazed at the number of people who just called in off the street! There was a constant flow of people wanting stuff for hen & stag nights and embroidered stuff. Whether this alone justifies the additional cost – only they will know.

I doubt I’ll be moving out just yet unless I’m offered free rent & rates + free utilities for 12 months 🙂

These days, it’s one hell of a risk to jump from a situation of low overheads as in our case now, to a shop window in a reasonable location. I’ve always been of the opinion that it’s good to keep the Xs (expenses) down. BUT, in doing so, there are downsides in that it’s more difficult to grow

[Dan Osterbery]

Hi steve,
it used to be the same for me, I was in a coastal resort, teeming woth tourists and used to do lots of t-shirts, but 2 years ago we moved to an industrial estate and the walk in evening trade has gone and now, one offs a pain.

So do we have a formula good location = profit, bad location = grief!!

regards

Dan

[Steve Underhill]

I was taking over a unit, & keeping the shop but decided against it now, we are staying in the shop.
£800 a month for a unit, plus the shop compared to £100 a week all in for just the shop.
no contest, Ill buy in bigger work rather than make it.

[Dan Osterbery]

we have lost the tourist trade, but have picked up all year work, so we are much happier, and as the tourist only seem to come for 3-4 months a year, it was the right decision for us as you cant eat t-shirts in the winter (believe me I tried). But I would have loved to be able to keep both!! In the right spot as you say it can be profitable!!

Dan

[John Cooper]

There are edible T-Shirts you know

[Dan Osterbery]

oh no! f hj e ol k r l! dribble on my keyboard stopped it working!!

[Neil Speirs]

Seaside shop here & they make us good money, edible or not 😉

[Mark Candlin]

Having looked at buying a new press….up to £1,000!! I decided to buy second hand and spent £360 on a solid British made model.

Will let you know how i get on

Cheers

[leerees]

If you want to write off tax stock up on vinyl and boards. T-shirts are a complete waste of time, they will get in the way of more profitable sign making.

One offs / heat presses are just more trouble than they’re worth. An hours messing around with artwork, printing / weeding, applying, for what, 15 quid?

Customers come back after a few months because their t-shirts have faded / washed out so you end up spending another hour arguing with a bunch of prepubescent students.

Let’s put this into perspective, it’s just too much hard work. I’d much rather press print, read the paper and come back in 15 minutes to tend to the take up roll. Else, if I’m going to do any hard work it’s going to involve making a sign thats worth real money.

[Chris Windebank]

why don’t you press print and do some shirts rather than read the paper, best of both worlds

[leerees]

To be totally honest I rarely get time to read the paper, as much as I’d like to sit there and "mind" the printer, when it’s going I’m usually busy laying a sign.

[Ian Muir]

‘I’m usually busy laying a sign’…

I believe each to their own…..Whatever floats your boat sir, you obviously have a great love of signs…..me, more traditional, boring if you like, prefer nice women…. :lol1:

Ian :lol1:

[Neil Speirs]

quote leerees:

To be totally honest I rarely get time to read the paper, as much as I’d like to sit there and “mind” the printer, when it’s going I’m usually busy laying a sign.

That busy "laying a sign" u can’t even manage 5 minutes to upload a profile photo or properly introduce yourself in the hello section 🙄

I make t-shirts but I certainly don’t take an hour to design them & I never have customers coming back arguing with me for an hour about them but most importantly I do make good money off them…..stick to signs mate because it sounds like you haven’t got a clue about garment decoration (making t-shirts)

[Alan Drury]

I do shirts here as an add on to my sign business, customer walks in for a sign/van lettering and its easy to sell a few work shirts to them too. It has now grown to the point that I wouldn’t want to give it up and it is easy work.
Alan D

[Paul Humble]

Ive got a heat press and mug press as part of a full subli set-up. It doesnt make me as much as a Vehicle or Shop sign but every now and then I get a batch of 20 – 30 Hen night teeshirts that can be a nice little earner.

I certainly wouldnt knock anyone who only does garment decoration, it is certainly harder than it looks.

[Alan Drury]

I agree Paul and if you can get the volume I don’t see why a good living can not be made.
Alan D

[Malcolm Elliott]

It works for me but then I care about what leaves my place and won’t do ‘cheap’ or ‘basic’
5 minutes to knock up a design, 5 minutes to print/cut, doesn’t sound like a waste of time to me, go for it mate, you never know!

Malk