You are more likely to make them feel uncomfortable by stating what you do. Either way as above they won't give a stuff so long as you declare your income and only claim whatever it is you are entitled to.

Personally I try to have as little to do with the benefits system as possible. This is because of some very bad experiences and I'd rather not have to deal with their system which was not very helpful to someone who actually wanted to get off benefits ASAP again.

As for NI contributions, I know that if you have a very very low income you don't have to pay them and can get exemption, but I didn't mention that because I can't imagine an escort earning less than that threshold unless off sick, which is about ?107 a week (and I'm not one of those who thinks escorts earn squillions either).

I just thought it was worth pointing out, as I know a couple of escorts who prozzie once a month, and if you do that alongside building/running a small business, you could very well find yourself under the threshold.

They can do a "compliance check" at any time - I recently had one - where you have to submit almost everything including your dirty linen for them to scrutinise! ALL your bank accounts, passport, birth certificate, advertising, diary of appointments/work undertaken, expenses, EVERYTHING. But if you're above board, there's nothing to worry about

Its says on the hmrc.gov.uk website that its only based on the hours you work (and thats 30 hours per week minimum) and get paid for.  So unless you charge next to nothing per hour wouldn't you be over the 11k threshold?  So just wondering how did you pass the compliance check? 

I'm not asking in a accusing way or anything, I'm just a little confused about the whole Working Tax credits thing and how we could claim it. 

Yes you can - along with housing benefit and council tax   you just have to prove that your earning xxx amount each week 
 they ( tax credits just want to know your income for the year and you do your own accounts and  your own self assessment for tax each year before the end of Jan   

So for example  say your a single parent with 2 kids   and you register as self employed  say as a hairdresser    ( apologies to any ex hairdresser out their )  earning 500 pounds a week cash   but you only declare your working 20 hours a week earning 100 a week   by doing this you would get full housing benefit council tax  child tax credits and working tax credits which i think with 2 kids under 16 is at least 200 a week not including rent and council tax 
if your kids are younger you can even claim child care providing they are with a registered provider 


because this is often abused by people  doing exactly what i have said above,  the laws on this are being changed along with the introduction of the universal credit which will assume that if your self employed you are working at least 38 hours a week at minimum wage level and they will assess any benefit you get from this amount of earning regardless of if you earn it or not   

I dont think you can claiming working tax when self employed.

also when you start escorting or whatever self employed job that you do its important to keep your NI Contribuitions up to date  because should you need to sign back on or claim benefits of any sort or sick pay or income support  this is where you will come unstuck as they won't have  a record of you paying your  NI Stamp or being exempt from paying your  NI Stamp   


   So this is when you can get potential investigation that will want to know your inside leg measurement and who you last had sex with (and  being an escort could be a little difficult saying you can't remember if it was john joe paul either  )  They will want to know how you have been supporting your self for the past six months ect   


its also how so many benefit cheats get caught working on the side  and claiming  because often if they are on jsa or income support or benefit there NI stamp is being paid /covered for them  then all of sudden their employer ( who dosnt know that they are claiming and working start to pay there stamp as well so Now there is two lots of stamps being paid for one person 

sorry gone a bit of topic here but just rambling to myself  My  sister works part time for the dwp and the stories she tells med sometimes off some of the people she deals with  is hysterical if not downright crazy 

Quote from: Cat_BBW on 08 August 2012, 03:51:07 pm

They can do a "compliance check" at any time - I recently had one - where you have to submit almost everything including your dirty linen for them to scrutinise! ALL your bank accounts, passport, birth certificate, advertising, diary of appointments/work undertaken, expenses, EVERYTHING. But if you're above board, there's nothing to worry about

Its says on the hmrc.gov.uk website that its only based on the hours you work (and thats 30 hours per week minimum) and get paid for.  So unless you charge next to nothing per hour wouldn't you be over the 11k threshold?  So just wondering how did you pass the compliance check? 

I'm not asking in a accusing way or anything, I'm just a little confused about the whole Working Tax credits thing and how we could claim it.

Self employment is different. You don't earn an hourly wage from an employer (who might then ask you to do some underpaid overtime - that doesn't count for tax credits). When you're self-employed you spent LOADS of time marketing, advertising, answering calls, writing letters etc - while you're not being paid per hour, this IS all paid for when a client pays you.

My compliance check - which is the only one I've had in 8 years, so it's just a random selection - I sent a breakdown of average hours worked and what I spent doing during them. HMRC Tax Credits were happy with it. Check completed and closed.

You have to add up your WORKING hours (EVERYTHING to do with work, all the admin, phone calls, timewasters, travelling to outcalls etc). Then up your income, minus all the expenses (taxi fares, underwear, mobile top ups etc) and THAT is your profit. Divide that PROFIT between WORKED HOURS and there's your hourly wage.

because this is often abused by people  doing exactly what i have said above,  the laws on this are being changed along with the introduction of the universal credit which will assume that if your self employed you are working at least 38 hours a week at minimum wage level and they will assess any benefit you get from this amount of earning regardless of if you earn it or not   

Yep, see this is going to stuff me (along with many others!) - because IF you claim the UCs and you're not earning NMW, the rules state that they can treat you like a job-seeker and call you for interviews or work - paid or unpaid - at any time. Plus the fact my guaranteed money will disappear.

I hate this government.

At the moment Im still signing on as I had to use the money I had sat aside to pay a large debt and business has been dead. Hopefully will pick up and can then sort things out.