kirsty19

Declaring earnings and paying ni contributions?

49 posts in this topic

Hi really sorry if this is in wrong area but when you become an escort how do you go about declaring your earnings and paying natonal insurance contributions? And is it too risky not declaring earnings? Is occupation escort or something like 'model'? sorry if it sounds amateurish just really haven't any idea. will google it too but any help will be very grateful for any help !!

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Hi really sorry if this is in wrong area but when you become an escort how do you go about declaring your earnings and paying natonal insurance contributions? And is it too risky not declaring earnings? Is occupation escort or something like 'model'? sorry if it sounds amateurish just really haven't any idea. will google it too but any help will be very grateful for any help !!
Hi Kirsty. A good start is the "Sticky" post near the top of the General Discussion board and this link. As to not declaring earnings - yes, it's risky if you see this as a career and not just a short term fix for something, and "escort" is as good an occupational description as anything as I'm sure the tax office don't give a toss as to what you do! Good luck!! :rolleyes:

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Kirsty

PM me and I'll give you some information.

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Ring HMRC and tell them you want to declare as self-employed. They'll set everything up.

It is worth doing since if you don't declare they could send you a demand for unpaid tax years later, based on what THEY think you have earned. You may also need to rely on benefits/pensions based on NI in the future too - and if your record is incomplete you may lose eligibility.

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Ring HMRC and tell them you want to declare as self-employed. They'll set everything up.

It is worth doing since if you don't declare they could send you a demand for unpaid tax years later, based on what THEY think you have earned. You may also need to rely on benefits/pensions based on NI in the future too - and if your record is incomplete you may lose eligibility.

i have a copy of a recepit i use for my 'wages' i could email you a copy so you know how to set it out.

keep ALL recepts for anything you use for work too. as an escort we can get tax back on almost everything. i was told not to take the piss in my 1st year tho.

xxx

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Kirsty,

This is my advice, although many will disagree.

DONT declare yourself to Inland Revenue until you are sure that Escorting is for you, it is very easy to be put on their books but very hard to be taken off.

If you are currently claiming benefits just carry on as normal for the time being, signing off will draw attention to yourself.

If you decide that you are going to be Escorting long term then it may be better to "go legal" and start paying tax and NI, a call to your local tax office and they will set things up for you, obviously you will not need to declare every penny you take ------ whatever you do don't bank more money than you are declaring.

It may be a good idea to hire an accountant to handle you yearly tax returns, my accountant charges £400 a year.

You will pay tax twice a year, 31st Jan and 31st July, your NI contributions can be paid by direct debit each month.

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i have a copy of a recepit i use for my 'wages' i could email you a copy so you know how to set it out.

keep ALL recepts for anything you use for work too. as an escort we can get tax back on almost everything. i was told not to take the piss in my 1st year tho.

xxx

If you do outcalls write off a Ferrari - say that your customers are discerning gentlemen who demand style and class, and demand that you to arrive to appointments without any delay.

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If you are currently claiming benefits just carry on as normal for the time being, signing off will draw attention to yourself.

Not sure about this. If DWP find out they wil get very nasty.

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Not sure about this. If DWP find out they wil get very nasty.

They are dealing with millions of people, the risk of being caught in a few months is negligible --------- unless of course someone provides them with "information".

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Kirsty,

This is my advice, although many will disagree.

DONT declare yourself to Inland Revenue until you are sure that Escorting is for you, it is very easy to be put on their books but very hard to be taken off.

If you are currently claiming benefits just carry on as normal for the time being, signing off will draw attention to yourself.

If you decide that you are going to be Escorting long term then it may be better to "go legal" and start paying tax and NI, a call to your local tax office and they will set things up for you, obviously you will not need to declare every penny you take ------ whatever you do don't bank more money than you are declaring.

It may be a good idea to hire an accountant to handle you yearly tax returns, my accountant charges £400 a year.

You will pay tax twice a year, 31st Jan and 31st July, your NI contributions can be paid by direct debit each month.

I agree with most of this too - Kirsty, you have three months from when you start working before you have to register as being self-employed; when you get the form you can just backdate it, but don't leave it any longer. This should give you time to decide whether or not the job is for you. The forms you get from the Tax Office will include all the stuff you need to pay your NI and so on.

I wouldn't agree that you should claim benefits on the sly, but the risk you take is up to you. I would also recommend an accountant - mine costs slightly more than Jimmy's but still only works out at about £10 a week which is a small price to pay for never havng to deal with the Tax Office yourself! If you follow the link above to the 'Tax Relief for Escorts' post and visit the website, you can order a diary from there which is specially designed for us and makes it ver easy to keep all your records in one place.

Just PM me if I can help with anything! :rolleyes:.

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Kirsty,

This is my advice, although many will disagree.

DONT declare yourself to Inland Revenue until you are sure that Escorting is for you, it is very easy to be put on their books but very hard to be taken off.

If you are currently claiming benefits just carry on as normal for the time being, signing off will draw attention to yourself.

If you decide that you are going to be Escorting long term then it may be better to "go legal" and start paying tax and NI, a call to your local tax office and they will set things up for you, obviously you will not need to declare every penny you take ------ whatever you do don't bank more money than you are declaring.

It may be a good idea to hire an accountant to handle you yearly tax returns, my accountant charges £400 a year.

You will pay tax twice a year, 31st Jan and 31st July, your NI contributions can be paid by direct debit each month.

I agree with all of this. BUT with regard to benefits you have a difficult decision. The risk of getting caught is small but the consequences could be severe.

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My advice to WGs is to register as self employed with HMCR, pay the tax and NI, and sleep easy at night. To do otherwise risks rather more than sleepless nights.

Jolyon's site has a great deal of helpful info.

The Fisc are not the least bit concerned as to the source of the earnings. (It's not unlawful anyway) but if a lady is embarrased she can always say she's a health therapist or somesuch twaddle.

I've now retired from client tax matters but have advised a couple of WGs about this matter including the danger of assuming that a foreign bank account will 'hide' the earnings safely away. It most certainly will not as the UK and most other jurisdictions seem to be coming together on 'exchange of information'. And if a lady thinks that the Fisc will only be concerned about the interest arising on a foreign bank account let me say they certainly will not. They will enquire about the way the 'capital sums arose' in the first place.

Uncle Pokey

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You can also try the IUSW/GMB. If you joins as a sex worker they have access to legal help and accountants who specialize in the cash accounting.

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Absolutely brilliant advice guys thanks very very much. I toyed with the idea of an accountant but wasn't sure if they would even consider a sex worker so this is great that found out they would... although guess some wouldn't but it's worth looking about. And to be fair not as pricey as you'd think. Really glad asked here, as things like getting tax back on items is new to me so yes very helpful!! Thanks :rolleyes::)

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Can I add a few things to what others have already said.

1. What you tell the taxman that you do is not a huge issue. I'd go for a description that you feel comfortable with but which is not a million miles from what you actually do. There is a popular misconception that if you tell the taxman that you are fitness consultant then you can only claim tax relief on expenses appropriate to a fitness consultant. That is not correct. You can claim relief on any expenses which are wholly and exclusively incurred in earning your income. So if you are earning money from escorting you can claim for condoms. The description of your business doesn't matter.

2. There are penalties for registering late. However the penalty regime changed significantly on 6 April this year, and there is no longer an automatic £100 penalty for failing to register within 3 months of starting.

3. The taxrelief4escorts web-site needs updating to reflect the tax changes (including the change in the penalty regime) which took place in April. I'm working on a complete update of the site and hope to get it done before the end of the summer.

4. I really would recommend the TaxRelief Diary. It's chief advantage is that it helps you to easily keep your records in a way which will give you maximum protection from a tax enquiry, and pay no more tax than your fair share. I know it's not cheap but as an investment in your financial security it's got to be money well spent.

5. You can handle your own tax affairs but I really would recommend using a properly qualified accountant. I know that sounds like advertising. It isn't, because I have now retired from taking on new tax clients.

Best of luck.

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They are dealing with millions of people, the risk of being caught in a few months is negligible --------- unless of course someone provides them with "information".

Jimmy. I know last year they reasd this board. I think they have eased off at the moment though.

Personally I dont think it should be taxable unless they legalise it.

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Do you mean legalise the exchange of money for sex?

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Jimmy. I know last year they reasd this board. I think they have eased off at the moment though.

Personally I dont think it should be taxable unless they legalise it.

The British media have been shy to report such a case due to it 'being too controversial'....ie: an attempted (failed) prosecution of a WG for Tax, NI, etc .......

The British government are utter hypocrites, but their 'butt poodles' (media) dare not tell it like it is.

PM me......

L

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1. What you tell the taxman that you do is not a huge issue. I'd go for a description that you feel comfortable with but which is not a million miles from what you actually do. There is a popular misconception that if you tell the taxman that you are fitness consultant then you can only claim tax relief on expenses appropriate to a fitness consultant. That is not correct. You can claim relief on any expenses which are wholly and exclusively incurred in earning your income. So if you are earning money from escorting you can claim for condoms. The description of your business doesn't matter.
I used to make a living as a self employed whateverist. Meaning I did whatever people paid me to do. Gardening, bartending, proofreading, accounting, voice acting, furniture hauling, copywriting, cooking...

As far as the tax man was concerned, I was a "consultant". Every purchase was booked as "equiment" (computer, phone and tools), "expenses" (travels et al) or "material" (stuff I used up, like stationery, or food when I was catering), and every income was a "consulting fee as agreed".

Noone ever asked me what I actually did, or what those expenses actually were.

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Personally I dont think it should be taxable unless they legalise it.

But prostitution is legal ??????????

It is the running of a brothel that isn't. :rolleyes::)

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Really glad asked here, as things like getting tax back on items is new to me so yes very helpful!! Thanks :):)

An accountant would advise you what things you are able to claim for --- such as advertising or rent if you used the premises solely for business, I doubt that you could claim for rent if you intend to work from home.

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If you're receiveing cash why would you want to declare it?!

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If you're receiveing cash why would you want to declare it?!

If you make a statement like this that on the face of it looks stupid but is probably meant to be incredibly funny, put a smiley on it, otherwise people will think you are serious and therefore a little short on the old grey cells.

Just think for 5 minutes how much cash a halfway decent working girl will make in a week and multiply that by at least 40.

Where will she keep that amount of cash whilst spending it?

Will she also claim benefits so as to disguise her income source? If so, that's another offence.

How does she ever again report a robbery?

How does she get credit cards?

Explain a car?

Clothes??

etc

etc

etc

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.....otherwise people will think you are serious and therefore a little short on the old grey cells.

It seems to be a common theme on here for moderators especially to be quite patronising and quick to jump on the offensive whenever anything going against their opinions. :)

Many people do get by quite happily under the radar, paying cash and not living off credit cards isn't that unusual :(

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If you're receiveing cash why would you want to declare it?!

You make a very valid point, it all depends on the circumstances of the lady, let's say she is a single mum who works one day a week in a parlour then she would be pretty stupid to give up her benefits and pay tax.

Now look at the other end of the scale, a lady who goes into this business to earn as much as she can, £2000 a week is more than possible, what is she going to do with the money, she can't bank it, she can't buy property --- even if she pays cash for an expensive car she could be reported to Inland Revenue.

I hope that explains why sometimes it is better to "go legal". :);)

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