John Holmes

Do many brothels/parlours pay tax and VAT?

17 posts in this topic

I know that many WGs pay income tax, but what about brothels?

Do many register as businesses and pay tax? Will the Inland Revenue accept them?

Just curious.

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There was a case in my local papers earlier this year of a parlour in Staines, Middlesex whose female owner had been sent to prison- I think for two years for brothel keeping. There were one or two different ladies there each day and she worked there as the Maid. Old Bill was alerted to her presence by the Inland Revenue who had accepted large amounts of tax from the lady who had declared the income as coming from the proceeds of a massage parlour.

Who says you can't have your cake and eat it?

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There was a purge last year where the Shadow Economy Team from HMRC went round visiting parlours checking their liability for VAT

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There was a purge last year where the Shadow Economy Team from HMRC went round visiting parlours checking their liability for VAT

HMRC will accept anything they deem as a'Trade or Profession'...though strangely enough, not Burglars!!

It is ridiculous how one part of the government are quite happy and willing to take the 'immoral or illegal earnings' and yet another part want to put the same people in Jail.

Talk about heads you lose tails you lose.

The fact that any monies/spoils recovered in these 'raids' get divided up betweem the police and HMRC is also risable.

Talk about 'double penetration' without so much as a gob of spit

The law is an Aye-us

L

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HMRC will accept anything they deem as a'Trade or Profession'...though strangely enough, not Burglars!!

Anybody wanting some background information relating to the above can find it here.

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Perhaps someone should mount a private prosecution against HMRC for living off the proceeds of immoral earnings.

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Perhaps someone should mount a private prosecution against HMRC for living off the proceeds of immoral earnings.

Already been done, failed, can't be done now.

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There was a case in my local papers earlier this year of a parlour in Staines, Middlesex whose female owner had been sent to prison- I think for two years for brothel keeping. There were one or two different ladies there each day and she worked there as the Maid. Old Bill was alerted to her presence by the Inland Revenue who had accepted large amounts of tax from the lady who had declared the income as coming from the proceeds of a massage parlour.

Who says you can't have your cake and eat it?

I have in fact just received a letter from a brothel owner who as we post is languishing at HM's Pleasure.

When the prison system spews said owner out (November), HMRC will then go in the for the kill for VAT.

They must be very proud.

L

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There was a purge last year where the Shadow Economy Team from HMRC went round visiting parlours checking their liability for VAT

Very hard to prove the turnover of a brothel, all cash, no receipts given. :(

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They might not give receipts, but they do keep records, you give a name, they write it down, they have to know how much the girls owe them!

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how much of the money you give to the girl is put thru the parlour accounts. if she is self employed, and pays the parlour commission for each punt then the turnover will be smalll

but if HMRC deem that the girl is an employee as they are controlled by the parlour (Set hoiurs of work and say what punters they see) then they will go for employers NI and calcualte VAT on the whole turnover. good old IR35

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I have in fact just received a letter from a brothel owner who as we post is languishing at HM's Pleasure.

When the prison system spews said owner out (November), HMRC will then go in the for the kill for VAT.

They must be very proud.

L

Dammit I don't usually get angry as is seen from my posts but these fxckers in HMRC really take the biscuit don't they? Taking money in tax and then throwing said tax payers into prison. I take it they treat parlours, agencies and independents alike, most of whom I'm sure volunteer tax returns. Criminalising honest business people but perfectly happy to grab their well earned money. :(:mad:

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how much of the money you give to the girl is put thru the parlour accounts. if she is self employed, and pays the parlour commission for each punt then the turnover will be smalll

but if HMRC deem that the girl is an employee as they are controlled by the parlour (Set hoiurs of work and say what punters they see) then they will go for employers NI and calcualte VAT on the whole turnover. good old IR35

There was some thread on here or on Caitlins board comparing prostitutes to hair dressers. Something about hairdressers renting their place in the salon, so the owner only payed VAT on the rental of the space and not the whole cost of the treatment.

Now the brothels I know, the women are not controlled by the brothel, they work in various other places, so they are contracting to several places and can thus prove they are self employed.

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There was some thread on here or on Caitlins board comparing prostitutes to hair dressers. Something about hairdressers renting their place in the salon, so the owner only payed VAT on the rental of the space and not the whole cost of the treatment.

Now the brothels I know, the women are not controlled by the brothel, they work in various other places, so they are contracting to several places and can thus prove they are self employed.

See the excellent articles by Jolyon's (author of the post on CC that you're referring to) on this subject:

http://www.taxrelief4escorts.co.uk/BackgroundStuff.html

In particular see:

http://www.taxrelief4escorts.co.uk/Businessmodels.html#Topic63

and:

http://www.taxrelief4escorts.co.uk/TheSpearmintRhinocase.html

B

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Very hard to prove the turnover of a brothel, all cash, no receipts given. :(

When the Revenue investigate someone, they can ask for all your bank statements going back up to 20 years if they suspect you of fraud. So they will ask how you managed to bank large sums of money without paying tax on it. They will also ask about how you could afford certain possessions. If earning cash in hand, it is best not to put any of it in a bank account.

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