I think we had a thread about it when the story first appeared a few months ago, although I don't have time to look for it now.

There is an excellent breakdown of how HMRC will calculate undeclared income on the Tax Relief 4 Escorts site, but in a nutshell, if you charge ?100 per hour they'll assume you're doing 36-40 hours a week like anybody else (since tax officials are not prostitutes and don't have any reason to know how the job works, or what a more realistic figure would be) and the onus will be on you to prove that you're not, which if you don't keep records and have already proved yourself to be a liar to the authorities (by omission, ie not declaring) is going to be on the tough side.

I'm surprised you've never heard of the Miss Whiplash case even if none of the others - it was so high profile people still refer to it now.

I personally know several people who have been investigated by HMRC, two of them prostitutes and one who was declaring her income (and came out of it far better than the one who wasn't). The investigations alone cost ?3000+, and that's just for you to prove everything's in order.

At ex-work, there were several.

It was never clear whether it was other escorts reporting rivals, disgruntled clients / bitter ex's doing it, or simply HMRC reading the gay press like everyone else that was the cause of the various downfalls, but it did not take many for other people to become very interested in how to tell HMRC about their income.

Apart from it being 'the right thing' to do, I am pretty sure if you ever wish to purchase anything over 7k, you have to prove how you're able to obtain the funds to do so. I have been present when someone had to sign 'something' when making an expensive purchase, though I try and tend to just look pretty and not ask questions.

 I doubt many escorts make these kind of expensive purchases every day but surely there would still be problems when renting property etc. if you aren't declaring your income.

I don't think it is any more cruel than taxing the honest, working citizens who do declare their income. In fact, it is just expected. I don't understand why she didn't declare her income though, I thought everybody knew tax is a certainty in life? So it does make me question her mental health and ability to pay tax which ultimately makes me think the prison sentence is cruel.

They could take into account (I think) the fact she wasn't claiming any benefits. Though I do wish they would use their resources to deal with the benefit fraud problem, instead of jailing and harassing a prostitute for x amount of money, which ultimately will go into the thousands of households who don't need but feel entitled to part of our income their benefits.

Sorry if I come across as a meanie here, I am tired but benefit frauds anger me more than the tax man because tax is inevitable, it was here before the bible. There will always be some high-ups (IRS) who take from their slaves (working citizens) as that is a power structure of the world. we live in. But it's quite clear benefits are not only given to 'those in need' but quite commonly to those who merely chose not to work and sign on, sometimes (often) even boasting about it.

Better to just work and pay your taxes than be greedy.
 xx Feliz xx

Quote from: SoyFeliz on 09 October 2013, 01:53:19 am

Apart from it being 'the right thing' to do, I am pretty sure if you ever wish to purchase anything over 7k, you have to prove how you're able to obtain the funds to do so. I have been present when someone had to sign 'something' when making an expensive purchase, though I try and tend to just look pretty and not ask questions.

 I doubt many escorts make these kind of expensive purchases every day but surely there would still be problems when renting property etc. if you aren't declaring your income.

I don't think it is any more cruel than taxing the honest, working citizens who do declare their income. In fact, it is just expected. I don't understand why she didn't declare her income though, I thought everybody knew tax is a certainty in life? So it does make me question her mental health and ability to pay tax which ultimately makes me think the prison sentence is cruel.

They could take into account (I think) the fact she wasn't claiming any benefits. Though I do wish they would use their resources to deal with the benefit fraud problem, instead of jailing and harassing a prostitute for x amount of money, which ultimately will go into the thousands of households who don't need but feel entitled to part of our income their benefits.

Sorry if I come across as a meanie here, I am tired but benefit frauds anger me more than the tax man because tax is inevitable, it was here before the bible. There will always be some high-ups (IRS) who take from their slaves (working citizens) as that is a power structure of the world. we live in. But it's quite clear benefits are not only given to 'those in need' but quite commonly to those who merely chose not to work and sign on, sometimes (often) even boasting about it.

Better to just work and pay your taxes than be greedy.
 xx Feliz xx

Its an old thread  she was ( from my memory ) doing something to do with Horse Racing /breeding s with other people  and some sort of money laundering scam that brought her to the attention of HMRC   its often the case that they find something else start looking at that and then get something for more interesting to focus on    like how she paid for her flat in cash
 She would have been much better to have borrowed money of her credit cards to put the deposit down as cash ( as least it shows where the money has come from ( although your not supposed to get credit with credit ) and then used her cash to pay back her credit card bill bit at a time 

I purchased my car with significantly more than 7k a few years ago with no problems and that was at a main BMW dealer   Didn't have to sign anything i had to go to the bank with them with the money in a paper bag (lol) but they had no problems in taking the money for payment  although they said it wasn't there usual way of payment

Sorry Paris, I wasn't 100% sure (it would seem extreme for everyone to have to prove income every time they made a purchase above 7k) but I should of been clearer, it was actually at the bank this person had to sign something and they had called the manager (or somebody) to deal with this. I try not to get too involved in other peoples finances (and I'm really thinking now, proving income for 7k+ would be a bit ridiculous) but I have a feeling it was due to needing to take a significant amount of money out of the bank to make the purchase. But then I wonder if the seller of expensive goods would ask questions seeing as though the bank did? I'm not 100% sure at all, but this was a much greater amount than 7K and that's probably where the queries came from.

If we are liable to pay tax and we do, I don't think there is ever a need to worry as you can easily prove your income. But in this ladies case (I have only read briefly to be honest), it seems she had actually managed to put a deposit down to secure a flat in cash? Before she was arrested/investigated?

The amount my friend needed from the bank was around the same amount as the lady in metro so perhaps it is something to do with banks being involved, and maybe she had kept her cash hidden (under the shoebox under the bed as i've read about lol) and it never entered or was withdrawn from a bank? And whoever sold the flat didn't ask questions. I've never actually withdrawn over 1k from the bank but come to think, even when I take smaller amounts over the counter, I've had to sign a receipt sort of thing. But not had to sit down in a room and explain myself like my friend did when withdrawing a large amount.

I've just realised what I actually mean to say, is i've always thought the Seller was obliged to inform the correct authorities if they sell something of significant value. As opposed to Seller asking Buyer how they obtained funds etc. Sorry if i'm confusing, i'm confusing myself!

Should I decide to make a profit from peddling my wares (lol) I won't even dream of avoiding taxes, it just isn't worth it. I just have to decide what to 'call myself' ... personal therapist maybe (Sorry if off topic).