Hi,
I've recently given up my 'normal' 9-5 job to escort full time. I know I now need to register as self employed but just wondered if anyone can give any advice on a couple of things...
- Do I just say that I'm an escort - or do I make something else up? If so, what?!
- As someone self employed, isn't it normal that invoices would be created for services - what I'm trying to say is how on earth do I keep records which will suffice for the tax man?
- Do I need to get an accountant or is it easy enough to do yourself?
- Anything else I need to do?!
Argghhhhhhh! Does anyone else have these problems? Or better still - the solutions?!
Any advice would be much appreciated!
Thanks in advance,
Sam x (aka shybutsexy)!

Hi and welcome

I'm an indi and do my own tax returns. I state my profession as "escort" and have done for the last few years and had no problems with the IR (fingers crossed).

The on-line forms are pretty straightforward in my opinion and if you do get stuck the Inland Revenue helpline tend to be very helpful so that's why I do mine myself.

Each tax year I buy a 12 section folder (from smiths, tescos etc) and I've labelled it up for each month in the tax year from april to march and I just put my receipts in each bit. I keep receipts from hotel visits, condom shopping, taxis, phone bills etc. If I pay for anything on credit card I keep a copy the statement for that month in the folder too.   

I bank all my cash in my personal account and keep a spreadsheet of what I have earnt each month and so refer to those two things at the end of the year as regards income.

As regards expenses, I just again use a spreadsheet using everything in my receipts file and adding it under the relevent section on the tax form - admin costs, travel etc.

The on-line tax form works out everything for you once you have input your ins and outs so if you keep a record of money earnt and keep all your receipts in one place then it is pretty straightforward to do yourself but an accountant may know of more loopholes and tax saving methods so it my be worth using one just for that reason - their costs are tax deductable I believe.

The www.hmrc.gov.uk site is very useful and they will send you out a folder full of info for newly self employed peeps if you ask. They run seminars as well to help people and you may also be able to get free advice from local business/enterprise groups - look in yellow pages for one near you.

I think it is still the case that you have to register with the IR within 3 months of starting out and you will need to pay class 2 National Insurance contributions every week (I do a monthly direct debit from my bank account). At the end of the tax year you have to, in addition to your class 2s and your tax bill,  pay Class 4 National Insurance contributions - the amount of which is based on your earnings and can be quite high.   

So its get registered, start paying class 2 NI conts, then keep records of ins and outs and then fill in your return by the end of Jan each year - oh and then pay the damm bill!

Hope that helps and welcome to SAAFE.

I set up a savings account to put 30 per cent of earnings in each month to ensure come tax bill time i have the money set aside and that earns interest for me too whilst in there.

Dont forget you national insurance contributions too,

Beth
xx

The actual question on the form is "What sort of self?employed work do you do?" and, as you can see, different people have different answers to that question.

The good news is that it doesn't much matter which one you pick: HM R&C are far more interested in getting their hands on some of the money than in exactly how you earned it and they also understand that some people need to be a bit discreet about what to call it: escort, therapist, model, etc etc.

They do have a set of guidance notes on sex work issues, but alas they're not publically available on their website. I'll see if I can find a copy another way.

They also have a helpline on 08459 15 45 15...

Gosh I didn't know they had specifc guidance for sex workers. I suppose they cant add it to their site for some sort of moral/legal reason?

Whenever I have called up and mentioned that I am an escort (which is what I put on my return) the person on the other end hasn't been anything other than factual and helpful. 

Hi im new to this site but not new to escorting!
Im so glad to have found this site , its so helpful and allows me to share my thoughts and be free as i have nobody else to talk to for descreet reasons.   
Its been going through my mind this whole tax thing, i just havent done anything about it, one of the reasons just too scared as to what im supposed to say that i do!
My main worry is exactly how to go about registering as self employed , i mean whats the best way?
Is it to walk into an inland revenue branch or over the phone?
Can somebody please advise me id be so grateful as i really need to get a move on!
Iv been escorting on and off for 3 years now and still have not registered !  Just getting really worried about this whole not paying tax thing.

Thanks a bunch James, do i pick that up from the post office?

Hi,

I am a qualified accountant and consider the taxrelief4escorts website a very good source of information for escorts. It is very consistent with the advice I give to my escort clients.

Regards, James

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