georgem

Vat

100 posts in this topic

You hear, from time to time, that some girls do proper tax returns and pay the appropriate tax on their income. Do you also register for VAT, ladies? The threshold for registration is an income between £1000 and £1500 a week, and I'm sure lots of you gross more than that a week.

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You hear, from time to time, that some girls do proper tax returns and pay the appropriate tax on their income. Do you also register for VAT, ladies? The threshold for registration is an income between £1000 and £1500 a week, and I'm sure lots of you gross more than that a week.

* Opens medium to large size box of popcorn *

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You hear, from time to time, that some girls do proper tax returns and pay the appropriate tax on their income. Do you also register for VAT, ladies? The threshold for registration is an income between £1000 and £1500 a week, and I'm sure lots of you gross more than that a week.

I should have added that there are not many services supplied by anyone that add more value than the services supplied by the ladies !.

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I should have added that there are not many services supplied by anyone that add more value than the services supplied by the ladies !.

Hmmmmmmm, nice try but I suspect no cigar.

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Hmmmmmmm, nice try but I suspect no cigar.

Indeed, were I to be in possession of a container of popcorn of sufficient volume I would open it. But I'm not, so I won't. :D

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You hear, from time to time, that some girls do proper tax returns and pay the appropriate tax on their income. Do you also register for VAT, ladies? The threshold for registration is an income between £1000 and £1500 a week, and I'm sure lots of you gross more than that a week.

The threshold is £70k and applies to the most recent 12 months of trading turnover or an expectation to exceed it in the next 30 days isn't it? Provided the goods or services are rateable that is. Not sure how it applies to escorting though.

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I haven't hit the threshold so no need to register.

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You hear, from time to time, that some girls do proper tax returns and pay the appropriate tax on their income. Do you also register for VAT, ladies? The threshold for registration is an income between £1000 and £1500 a week, and I'm sure lots of you gross more than that a week.

I'm pretty sure I've read here before that escorting services are liable for VAT if their earnings pass whatever the threshold is.

However, does anyone really care that much if they pay VAT, or any other tax for that matter? I know I don't. The majority of the places I visit are technically brothels, and therefore illegal, but that doesn't bother me, and it doesn't bother me that they are breaking another law.

I know tax evasion is bad for the country as a whole but there are far more serious offenders. The authorities are doing their best to drive the industry completely underground, which will only encourage further tax evasion. If they are going to continue to try and persecute us, I don't see why we should be paying for the privilege.

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I'm pretty sure I've read here before that escorting services are liable for VAT if their earnings pass whatever the threshold is.

However, does anyone really care that much if they pay VAT, or any other tax for that matter? I know I don't. The majority of the places I visit are technically brothels, and therefore illegal, but that doesn't bother me, and it doesn't bother me that they are breaking another law.

I know tax evasion is bad for the country as a whole but there are far more serious offenders. The authorities are doing their best to drive the industry completely underground, which will only encourage further tax evasion. If they are going to continue to try and persecute us, I don't see why we should be paying for the privilege.

Personally I like what you said,...

Professionally I know better... I pay tax and NI, can't say I have hit the threshold for VAT if I do I will be sure to let you know.

It's all very complicated and as I am pant's with numbers I leave my books in the hands of my accountant... I don't know what he does, but it all works out. :mad:

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... as I am pant's with numbers ...

Kinky thinks of Tammys pants......

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You hear, from time to time, that some girls do proper tax returns and pay the appropriate tax on their income. Do you also register for VAT, ladies? The threshold for registration is an income between £1000 and £1500 a week, and I'm sure lots of you gross more than that a week.

Despite popular belief most indepenents wouldnt hit the £68,000 a year requirement. Yes a lady might on the odd occasion earn in the region of £1000 - £1500 a week but fortunately the VAT system is not based on weekly turnover but rather quarterly and few ladies I know maintain £1000-£1500 a week on an ongoing and regular basis.

Most girls do not work a 5 day week, most girls will work one or two days around another job or other commitments. Some girls who do work a 5 day week will usually do so because they just want one or at most two clients a day, so thier 5 day week is roughly equal in a roundabout way to anothers one or two day week in which if both girls were flat out, i.e. the 5 day a week girl saw her 2 clients a day everyday and the girl who does lets say 2 days a week sees 5 clients a day, they would see roughly 10 clients a week @ aprox £150 per hour equalling your £1500 a week.

In all reality this is a rarety rather than the norm, between client no shows and the demand of a specific area a girl is actually only likely to achieve these figures when on tour or certainly has to work very hard in order to achieve them. Many independents are now only charging £100-£120 an hour so this problem if you like only gets worse. The income for an independent escort is anything but reliable and most girls, just like most other human beings take holidays, breaks for Christmas or other religious holidays etc. then you have all the seasonal fluctuations of the industry like a quiet Febuary & March etc.

The above is one of the core reasons many girls choose to work for agencies rather than independently because they have a marginally more reliable income than as an Independent. That by no means means they have a reliable income and often means they have to see more clients and travel to more areas in order to earn thier money, this is not maintainable for most girls and so once again they work one or two days a week at different agencies earning half of the figures you state if they are lucky. They too take holidays and need time off for breaks.

No one is saying escorts dont earn a comfortable living, they wouldnt have chosen the job they do if they were not able to support themselves and at least live comfortably, but where does the idea that escorts either independent or otherwise earn such rediculous somes of money?

In all reality (and there will always be one or two exceptions) most escorts by the end of the year earn an income only slightly above the national average. An income that yes if they worked hard in the real world at some other job they could more than likely achieve but for whatever reason be it family commitments, children or whatever, thier studies or simply the fact that they do not wish to work a 5 day week doing some dead end job they hate in order to survive they choose a different path.

Just think for a minute, do you really think as a woman you could sleep with 12 different men at an hour a time each week (based on £120 an hour) for 50 weeks of the year without taking some sort of a break or restpite or without going entirely insane? Thats what you would need to do each and every week of the year in order to break the VAT threshold as an independent escort. I would have thought any escort would be over the moon to get 12 one hour bookings in a week but if she did she would be thanking her lucky stars safe in the knowledge that sort of random event isnt likely to happen again any time soon unless she tours and no escort can be away from home and tour every week throughout the year

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The threshold is £70k and applies to the most recent 12 months of trading turnover or an expectation to exceed it in the next 30 days isn't it?
Well bugger me sideways. I should register my business in the UK instead. I pay VAT on every dammn coin from the very first. :mad:

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There is one lady who practices somewhere in the Welsh borders, whose "donations" web-page carries the fascinating statement: "Tax included"!

I'm not sure if/when I visit her, whether I'll ask for a VAT receipt.

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Absolutely correct I take breaks to keep myself fresh, avoid burn out and this last year was working mostly 'part-time' out of personal choice and circumstance. I am not driven by oodles of money since being happy, having a reasonable standard of living whilst putting a bit aside are generally enough for me, although I would like to start seriously looking at buying a house.

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Well bugger me sideways. I should register my business in the UK instead. I pay VAT on every dammn coin from the very first. :mad:

You do in the UK as well.

The threshold is for compulsory registration, but you may choose to register if your turnover is lower than that.

Once registered you charge VAT on your sales invoices and claim VAT on all your purchase invoices.

(well, on the VAT-able goods or services anyway)

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Hey SASfan--you finished the popcorn yet?

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Hey SASfan--you finished the popcorn yet?

Good point georgem - this thread hasn't set the world alight despite the obvious bait from SASfan. :mad:

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Well bugger me sideways. I should register my business in the UK instead. I pay VAT on every dammn coin from the very first. :mad:

Who said you didn't:confused: And if you do declare every damn coin and you deal in cash money as all escorts/wgs do, the you are a probably in a very small minority as far as self employed people go. But don't tell anyone eh?:P

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It's now a number of years since I dealt professionally with the fisc in representing my clients. But I offer again as I did then the advice to WGs that in case of investigation by said fisc, ensure you keep a diary of your appointments, the amounts earned and ensure that the monetary record is congruent with both your bankings and your life style or at least not at tension therewith unless explained by other means.

This will be useful evidence in any investigation and even if you are banged to rights on non-disclosure or under-disclosure you will at least have some evidence to moderate the more excessive demands of some of the officials concerned.

Uncle Pokey

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It's now a number of years since I dealt professionally with the fisc in representing my clients. But I offer again as I did then the advice to WGs that in case of investigation by said fisc, ensure you keep a diary of your appointments, the amounts earned and ensure that the monetary record is congruent with both your bankings and your life style or at least not at tension therewith unless explained by other means.

This will be useful evidence in any investigation and even if you are banged to rights on non-disclosure or under-disclosure you will at least have some evidence to moderate the more excessive demands of some of the officials concerned.

Uncle Pokey

when i was freelance i used to keep one third of income in a separate account for paying VAT and tax. was usually about right.

but then i worked through a limited company, and paid employers and employees NI. Not sure that self employment works out the same....

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when i was freelance i used to keep one third of income in a separate account for paying VAT and tax. was usually about right.

but then i worked through a limited company, and paid employers and employees NI. Not sure that self employment works out the same....

If you're very profitable then incorporating and becoming an employee of your company can be a very beneficial step tax/NI wise. Makes no difference where VAT is concerned though.

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If you're very profitable then incorporating and becoming an employee of your company can be a very beneficial step tax/NI wise. Makes no difference where VAT is concerned though.

lot of admin. PAYE, corporation tax and companies house.

and advance corporation tax can be a killer

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If you're very profitable then incorporating and becoming an employee of your company can be a very beneficial step tax/NI wise. Makes no difference where VAT is concerned though.

Absolutely, VAT is a tax on the goods and services, the business is only the collector and administrator of it on behalf of HMRC. What it pays on its purchases is offset against what it collects on its sales, the difference being the amount paid to HMRC.

Many self employed people I know, are forever buying stuff for their home and going on holidays etc. The perfect way to get rid of their cash-in-the-hand jobs with no audit trail. Then so long as your life-style reflects your income from an assets point of view, no probs.:eek:

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lot of admin. PAYE, corporation tax and companies house.

and advance corporation tax can be a killer

My accountant does my PAYE - about £25 a year and takes care of all my companies house filings.

Corp Tax is 21% across the board, compare that to 40% higher rate income tax, NI and also the Class 4 NI which is a crippler

So self employed can be paying - 17.5% (VAT) + 40% (Income tax) + 8% Class 4 NI + Class 2 (£125 p.a) = around 65.5% of your profit in tax.

Incorporated companies pay 17.5% + 21% = 38.5%. Then as a director you only pay tax/NI on the salary you pay yourself & you also get a tax break on dividends you might want to take. Also you can charge some living 'expenses' to the company (uniforms, fuel, rent if you have a home office etc). Other than that if you leave what you don't need in the company then no further taxes payable.

A good accountant doing your books (rather than self submitting) means they can get away with adding some un-proven expenses to the books which more or less covers their fees to you.

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