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Author Topic: Registering as self employed  (Read 6097 times)

Louise7

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Registering as self employed
« on: 14 January 2008, 01:43:24 pm »
Hi everyone,

I have been escorting for a couple of months now, so I now need to get round to registering with the IR as self employed. Just wanted to ask you all, what do you put down as your job description/business?? Are you all totally honest with them about what you do and put down that you are an escort, or not?

I want to make sure I keep my business all above board etc, but I am worried about people finding out about what I am now doing!!

Many thanks guys,

Lou x

xw5

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Re: Registering as self employed
« Reply #1 on: 14 January 2008, 09:38:28 pm »
In theory, missing CDs aside, what you tell the tax people is supposed to be highly secure and confidential.

In practice, they don't mind what you call it - somewhere here has a range of job titles people have used - because they're much more interested in getting the money :)

So it's up to you.
'The Ian formerly known as SW5'. What they said: "Indispensable", "You are our best resource", and (hours later!) "I'm afraid that you're being made redundant..."

Sunnyorange

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Re: Registering as self employed
« Reply #2 on: 17 April 2008, 12:11:19 pm »
Hi,

I'm hoping someone can help me with a related question. I currently have a 'day job' and I was wondering how registering with IR with my second job would affect this. Do I need to tell my boss I have another job? Will it show up on my pay slip?

xw5

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Re: Registering as self employed
« Reply #3 on: 17 April 2008, 12:51:33 pm »
I'm pretty sure this is covered on the HM R&C website... if not, I'd ring them and ask.

Your contract of employment may or may not have something to say about other employment. If it's out of work hours and doesn't affect work (no staggering in half asleep after an overnight...) then I don't think they need to be told, but it depends on the job. The relevant body (disgracefully) withdrew the necessary professional registration for someone's social worker job because they were escorting, for example.
'The Ian formerly known as SW5'. What they said: "Indispensable", "You are our best resource", and (hours later!) "I'm afraid that you're being made redundant..."

Jolyon

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Re: Registering as self employed
« Reply #4 on: 17 April 2008, 06:37:01 pm »
Hi,

I'm hoping someone can help me with a related question. I currently have a 'day job' and I was wondering how registering with IR with my second job would affect this. Do I need to tell my boss I have another job? Will it show up on my pay slip?

From a tax point of view, no, you don't have to tell your boss you also have other work.

If the Revenue change your tax code then your employer will not be told why it has changed. You will get a detailed 'Coding Notice' but the copy he gets will just tell him what code to use. And there could be any number of reasons for a change so it won't make him suspicious.

Having said that, your tax code should not change. You are entitled to have your tax free allowance (which is what the tax code represents) used against whichever source of income you choose. If you are employed and also self-employed it makes sense to use your allowance with your employed wages, because you get the tax on wages is paid immediately but the tax on your business will be paid much later. HMRC will normally assume that's what you want.

So the short answer is, no, your tax code shouldn't change. And even if it did your boss would have no way of knowing why.

Hope that helps

Tartlet

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Re: Registering as self employed
« Reply #5 on: 20 April 2008, 01:37:59 am »
Hi everyone,

I have been escorting for a couple of months now, so I now need to get round to registering with the IR as self employed. Just wanted to ask you all, what do you put down as your job description/business?? Are you all totally honest with them about what you do and put down that you are an escort, or not?

I want to make sure I keep my business all above board etc, but I am worried about people finding out about what I am now doing!!

Many thanks guys,

Lou x

What you register as your business name could be relevant if you'd also need to deduct other expenses and declare profits of any other activities that you do. For instance, some people might be IT professionals as well as working in the sex industry. A friend of mine put "IT professional" but is also claiming expenses and declare earnings made from sex industry as well.

I have put in "Model" as job description, cause at the time I went self employed I did do nude modelling. However, if you happen to have other interests, say you're an artist, then nothing stops you to put "Art/Video Installation" alongside "Model" (or "consultancy", "alternative therapist" if that suits as better descriptions of your work as an escort). That way, it justifies you deducting any expenses that you do for your art work.

When I openned a business account I was asked what my business did. I said entertainment (since I'm also trying to do some creative work) and luckily wasn't asked any more questions. I've also requested a doubble sided paying in book (for inserting money at the bank) so I could write in names of Mr So-and-so for each booking.

I was told that I needed to have invoices from clients at a Business Start Up course, but honestly God, who asks for them at a booking...  ::)

So my double sided paying in book acts as my proof of earnings. (a friend's idea who also works in sex industry, although not escorting).

However, technically you don't actually NEED a business account. Only a separate account for your business earnings, which could be just another current account.

Hope that helps,
~ Tartlet
« Last Edit: 20 April 2008, 01:44:22 am by Tartlet »
Tart with a heart ;)

xw5

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Re: Registering as self employed
« Reply #6 on: 20 April 2008, 09:57:05 am »
What you do have is effectively a diary, showing your income etc. Provided you're good about using it consistently, from what I've seen, that'll be fine in the unlikely event of being asked about it.

If HM C&R really are curious if you're telling the truth, they'll sit outside and count numbers (for restaurants, brothels etc) or make a booking and see what appears in whatever records you're keeping. If it doesn't match, you'll be assumed to be trying to cheat them - not a good position to be in.
'The Ian formerly known as SW5'. What they said: "Indispensable", "You are our best resource", and (hours later!) "I'm afraid that you're being made redundant..."

manisha

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Re: Registering as self employed
« Reply #7 on: 29 May 2008, 10:58:26 am »
Hi all, im new to this site and loving it already!
Didnt know forums existed for escorts this is such a relief to get a whole load off your mind :)

So what is the actual best way of registering with the inland revenue, because i tried to do it online it asked me for a url something which i dont have. So it it advisable to call them  or to go into a local branch?

I have now been escorting for 6 months, if i told them 3 months, will they check?
Im really scared about this whole thing but need to do something asap!

Anika Mae

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Re: Registering as self employed
« Reply #8 on: 29 May 2008, 11:58:10 am »
They're unlikely to question you if you say three months, although of course you're least likely to get in trouble if you tell the truth. If you tell them you've been working for six months they're most likely to be content that you came to them eventually and not fine you.

I think when I did it I called them and they sent me some paper forms.

manisha

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Re: Registering as self employed
« Reply #9 on: 29 May 2008, 05:25:01 pm »
Thanks for your reply Anika really appreciate it.
I think i will call them then, do they ask for bank account details? and what did you put down for your occupation ?           


Anika Mae

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Re: Registering as self employed
« Reply #10 on: 29 May 2008, 06:39:31 pm »
I did it over four years ago so I don't remember well, but I'm almost certain they didn't ask for bank details. I was a stripper at the time, so I put that. People put down all sorts of things, including the truth, it doesn't matter. I believe it's confidential, but check the specific terms if that's important to you.

Jolyon

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Re: Registering as self employed
« Reply #11 on: 29 May 2008, 11:18:03 pm »
Thanks for your reply Anika really appreciate it.
I think i will call them then, do they ask for bank account details? and what did you put down for your occupation ?           



No, you don't need to supply your bank details.

The main reason they require you to register within 3 months of starting in business is that you are required to pay Class 2 National Insurance from the date you started. This is currently ?2.30 per week and you can choose whether you want to pay monthly by direct debit (if you do that you obviously need to supply bank details) or they will send you a bill every 3 months which you can pay however you like.

It's not quite true to say that you can put down anything you like as your business occupation. For example if you are an escort who only does outcalls and you register with the taxman saying you run a guest house your tax return is going to stick out like a sore thumb because they know what the accounts of a guest house should look like and they'll wonder why you're spending so much on travelling.

I'd suggest going for something suitably vague that broadly covers what you do, and which you feel comfortable with. Acceptable descriptions might be 'Escort', 'Fitness Consultant', 'Alternative Therapist', 'Hospitality Consultant', 'Executive Stress Counsellor' or any permutation. But don't try to be too clever by putting something that you're clearly not qualified to do or which has a completely different pattern of expenses to what you actually do. Putting astronaut or chip shop owner is asking for trouble.


Hope that helps.

James_Accountant

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Re: Registering as self employed
« Reply #12 on: 30 May 2008, 05:59:31 pm »
Hi

I agree with Jolyon.

In selecting a business description it should be consistent with the type of business costs you will be incurring. So usually something appointment/consultation based which will need travel/telephone costs etc. Therapist is a good description or some type of consultant.

If the costs match the business description you are less likely to have questions raised by the taxman with regard to your tax return.

Regards James

http://www.adultwork.com/James%5FAccountant