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Author Topic: Tax - accountants, deductible expenses, general information  (Read 51297 times)

starrynight

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Tax - accountants, deductible expenses, general information
« on: 27 September 2014, 02:01:45 pm »
I know theres loads of threads r.e tax which I have read through but now I'm close to giving up cos at the moment it just feels like one completely scrambled up jigsaw. I'm sick of asking ppl for help & not getting any. I could REALLY do with someone to kinda mentor me through the process.

Right, I have got my Jolyon diary & reading through it. I didn't realise u were required by law to keep records!

*Do u have to claim expenses? I don't have receipts of any expenses so do I just not fill that in?
*How do you do back payment, or whatever its called, from before April 2014?
* Do I have to provide monthly bank statements?
* I can have up to 7 jobs a day but this diary only has space for 4. Can you just say "7 incall jobs totalling ? amount of pounds?"
* How exactly do you register? I did see a phone number somewhere but don't know where  ??? I've tried looking on the HMRC website but that's as complicated as long division  :-\
*How the hell do u find an accountant local to you who is escort friendly?? I contacted one in Wales, or somewhere, from a link somewhere on here weeks ago & still not had a reply.
* Can I register being a "masseuse" but what if I do & they find out I am in fact an escort?? :-\

I am genuinely scared doing this to the point I'm trying to hold tears back typing this....battle lost lol. I'm just dreading ringing them up, as I have since the past few years when I first found out I had to pay tax. Sometimes I just wish I hadn't bothered coming into escorting now. Theres absolutely no help or anything out there  :'(

Sorry just totally fed up   :'(

Kay

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Re: Tax - accountants, deductible expenses, general information
« Reply #1 on: 27 September 2014, 02:16:09 pm »
You need an accountant! Go to the tax relief for escorts website and there's a list of them there. I chose one in London, but one in the Scottish Highlands & Islands was lovely and helpful - all responded within 24h. You don't need to be physically close to them for them to guide you through everything, just make sure you have all the appropriate details like your NI number and any tax reference numbers.

If you want to say you're a masseur, the only thing you won't be able to claim for really is condoms. It's unlikely to be an issue with the HMRC so long as you're paying the correct amount of tax.
"There is no sin except stupidity" - Oscar Wilde

Rosa

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Re: Tax - accountants, deductible expenses, general information
« Reply #2 on: 27 September 2014, 02:54:48 pm »
Most accountants should be 'friendly' doesn't matter what job you do, the basics are the same.

amy

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Re: Tax - accountants, deductible expenses, general information
« Reply #3 on: 27 September 2014, 02:57:57 pm »
You need an accountant! Go to the tax relief for escorts website and there's a list of them there. I chose one in London, but one in the Scottish Highlands & Islands was lovely and helpful - all responded within 24h. You don't need to be physically close to them for them to guide you through everything, just make sure you have all the appropriate details like your NI number and any tax reference numbers.

Yes, you do. It's obviously getting on top of you and you're not seeing the answers to the questions - you need some proper professional help and you'll feel much better. Don't worry about finding an 'escort friendly' accountant too much either (and I'm personally wary of anybody claiming to pitch to us in particular, bar the people on Jolyon's site); your business model is extremely simple and there's really no need. If you're not getting anywhere with emails, have a Google, then ring round a few and ask :).

If you want to say you're a masseur, the only thing you won't be able to claim for really is condoms. It's unlikely to be an issue with the HMRC so long as you're paying the correct amount of tax.

Lord, how I wish I knew who started off this myth, if for no reason only that I could throttle them (given that I'm unlikely ever to get a tenner for every time it's been posted on here, which was my Plan A :D).

You may claim tax relief against any expense which is incurred wholly and exclusively in the running of your business, and this includes condoms (which are as much protective clothing as anything else), lube, sex toys, hosiery and clothing provided they're used/worn only for work, hotels and travel expenses and all the rest.

What you put on your form is up to you, but as Kay has said, nobody really cares provided you pay your tax. If I was a painter and decorator and decided that I wanted to keep my brush heads in condoms so they were protected from dust, I would have every right to claim for them then, too. But to claim expenses you do need to keep your receipts or you've got no proof you ever paid the money out for them - you must have some confirmation emails from hotels, or stuff you've ordered online, mobile topup receipts? If not, don't worry - just start saving them from now :).

starrynight

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Re: Tax - accountants, deductible expenses, general information
« Reply #4 on: 27 September 2014, 03:41:54 pm »
Oh thank you for your replies  :D

I've just read somewhere else that u only pay tax on your 'profit', so to speak: say u book a room for a client for 80pound, put 20 pound of fuel in your car to get there & the client paid you 250pounds for the booking. You only pay tax on the 150pounds of 'profit'. I didn't know that, but makes sense now, if you're hoing to claim back the cost of the room & the petrol.

Kay - thats the site I used to contact an accountant but will mail the Scottish Highlands one. If it works for you, surely it has to work for me also! I get my condoms free anyway but I dud used to buy them. I'll have to remember to keep my receipts forthe lube & whatever else I buy from now on.

Rosa - good point. I dunno, its just the society we live in, I suppose. I'd rather not risk it just incase I do get someone completely old fashioned & judgemental. That woukd be my luck  ;)

Amy - Just been talking to my bf about it too. He suggested Citizens Advice about finding an accountant & help getting this sorted out. I would personally prefer speaking to someone face to face but I will mail the accountant Kay usrd/uses.

Having read other threads where others say they just put 'escort', I feel reassured about that. Another site said if u were ever to be investigated they'll need to see your website. If I put 'masseuse', how would I explain that? I would rather put masseuse, but all 'what ifs' I have going round in my head don't feel worth it. Do they need to see your website once you have registered?

I'll have to check the 'confirmation' emails haven't been deleted. I think I may still have a petrol receipt from a tour I've just finished.

Back to the 'masseuse' bit. If I say this, what will I have to deliberately avoid showing? I just know I'll slip up somewhere  ;)

Thanks again girls, I really appreciate it xxx

Rosa

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Re: Tax - accountants, deductible expenses, general information
« Reply #5 on: 27 September 2014, 03:48:30 pm »
Oh thank you for your replies  :D

I've just read somewhere else that u only pay tax on your 'profit', so to speak: say u book a room for a client for 80pound, put 20 pound of fuel in your car to get there & the client paid you 250pounds for the booking. You only pay tax on the 150pounds of 'profit'. I didn't know that, but makes sense now, if you're hoing to claim back the cost of the room & the petrol.

Kay - thats the site I used to contact an accountant but will mail the Scottish Highlands one. If it works for you, surely it has to work for me also! I get my condoms free anyway but I dud used to buy them. I'll have to remember to keep my receipts forthe lube & whatever else I buy from now on.

Rosa - good point. I dunno, its just the society we live in, I suppose. I'd rather not risk it just incase I do get someone completely old fashioned & judgemental. That woukd be my luck  ;)

Amy - Just been talking to my bf about it too. He suggested Citizens Advice about finding an accountant & help getting this sorted out. I would personally prefer speaking to someone face to face but I will mail the accountant Kay usrd/uses.

Having read other threads where others say they just put 'escort', I feel reassured about that. Another site said if u were ever to be investigated they'll need to see your website. If I put 'masseuse', how would I explain that? I would rather put masseuse, but all 'what ifs' I have going round in my head don't feel worth it. Do they need to see your website once you have registered?

I'll have to check the 'confirmation' emails haven't been deleted. I think I may still have a petrol receipt from a tour I've just finished.

Back to the 'masseuse' bit. If I say this, what will I have to deliberately avoid showing? I just know I'll slip up somewhere  ;)

Thanks again girls, I really appreciate it xxx

Your accountant will give you the answers to your questions, it's their job!

Most accountants simply want to do the books and that's it. If they misbehave, discriminate you can report them to their professional body, so worst you should get is "Can't take you on".

Expenses reduce profit = less tax to pay so good idea to keep receipts.

starrynight

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Re: Tax - accountants, deductible expenses, general information
« Reply #6 on: 27 September 2014, 03:56:00 pm »
Oh thank you for your replies  :D

I've just read somewhere else that u only pay tax on your 'profit', so to speak: say u book a room for a client for 80pound, put 20 pound of fuel in your car to get there & the client paid you 250pounds for the booking. You only pay tax on the 150pounds of 'profit'. I didn't know that, but makes sense now, if you're hoing to claim back the cost of the room & the petrol.

Kay - thats the site I used to contact an accountant but will mail the Scottish Highlands one. If it works for you, surely it has to work for me also! I get my condoms free anyway but I dud used to buy them. I'll have to remember to keep my receipts forthe lube & whatever else I buy from now on.

Rosa - good point. I dunno, its just the society we live in, I suppose. I'd rather not risk it just incase I do get someone completely old fashioned & judgemental. That woukd be my luck  ;)

Amy - Just been talking to my bf about it too. He suggested Citizens Advice about finding an accountant & help getting this sorted out. I would personally prefer speaking to someone face to face but I will mail the accountant Kay usrd/uses.

Having read other threads where others say they just put 'escort', I feel reassured about that. Another site said if u were ever to be investigated they'll need to see your website. If I put 'masseuse', how would I explain that? I would rather put masseuse, but all 'what ifs' I have going round in my head don't feel worth it. Do they need to see your website once you have registered?

I'll have to check the 'confirmation' emails haven't been deleted. I think I may still have a petrol receipt from a tour I've just finished.

Back to the 'masseuse' bit. If I say this, what will I have to deliberately avoid showing? I just know I'll slip up somewhere  ;)

Thanks again girls, I really appreciate it xxx

Your accountant will give you the answers to your questions, it's their job!

Most accountants simply want to do the books and that's it. If they misbehave, discriminate you can report them to their professional body, so worst you should get is "Can't take you on".

Expenses reduce profit = less tax to pay so good idea to keep receipts.

True. The worst I could get would be they wouldn't want to take me on.

I know this varies completely from area to area, but how much approx does it cost to have an accountant? How does that bit work? Do u just pay them for their time, if u speak to them & when u give them your booms to sort out? Is it payment by the hour?

Xxx

Kay

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Re: Tax - accountants, deductible expenses, general information
« Reply #7 on: 27 September 2014, 04:15:34 pm »
Sorry Amy! I guess what I should have said is that you obviously CAN claim for condoms (and anything else), but if you really wanted to avoid being 'caught out' as an escort, then you wouldn't (whereas for a masseuse, e.g. towels, bedding and laundry would all be fine).

I'm going to be paying mine about ?700 for the year, but that's because my accounts are a bit more complicated due to having two strands of income (and they're in London).
"There is no sin except stupidity" - Oscar Wilde

amy

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Re: Tax - accountants, deductible expenses, general information
« Reply #8 on: 27 September 2014, 05:16:38 pm »
But 'escort' is no less a silly euphemism than 'masseuse' - why would an 'escort' need condoms when they spend their working time swanning about being taken to the theatre and going out for dinner? It's a completely meaningless term that gets far more airplay than it deserves, and causes so much confusion and misunderstanding it should have been voted off the planet years ago. At least masseuse means something.

If the sort of level of clinical accuracy that the OP is obsessing about was actually required we'd all be registered as prostitutes, or at least as sex workers (which would also encompass webcammers, porn performers, strippers, phone chat operators and so on). Unless you're actually going to use one of the above then you're always going to be skimming over something. They don't care, and it doesn't matter.

Reni

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Re: Tax - accountants, deductible expenses, general information
« Reply #9 on: 27 September 2014, 07:20:37 pm »
To be fair a few years ago when I was searching for a new accountant after my previous accountant didn't feel comfortable anymore for whatever reason, I decided to be open and when interviewing accountants. I told them my job 2 out of 3 said its fine and 1 said no. The two that did say yes pointed out that in future when trying to get a mortgage it might be difficult just because if the stigma/risks if the job.
It's old fashioned but that's the society. At least it's legal and we are luckier than some in that respect.

TheChemist

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Re: Tax - accountants, deductible expenses, general information
« Reply #10 on: 27 September 2014, 08:02:36 pm »
Oh thank you for your replies  :D

I've just read somewhere else that u only pay tax on your 'profit', so to speak: say u book a room for a client for 80pound, put 20 pound of fuel in your car to get there & the client paid you 250pounds for the booking. You only pay tax on the 150pounds of 'profit'. I didn't know that, but makes sense now, if you're hoing to claim back the cost of the room & the petrol.

Kay - thats the site I used to contact an accountant but will mail the Scottish Highlands one. If it works for you, surely it has to work for me also! I get my condoms free anyway but I dud used to buy them. I'll have to remember to keep my receipts forthe lube & whatever else I buy from now on.

Rosa - good point. I dunno, its just the society we live in, I suppose. I'd rather not risk it just incase I do get someone completely old fashioned & judgemental. That woukd be my luck  ;)

Amy - Just been talking to my bf about it too. He suggested Citizens Advice about finding an accountant & help getting this sorted out. I would personally prefer speaking to someone face to face but I will mail the accountant Kay usrd/uses.

Having read other threads where others say they just put 'escort', I feel reassured about that. Another site said if u were ever to be investigated they'll need to see your website. If I put 'masseuse', how would I explain that? I would rather put masseuse, but all 'what ifs' I have going round in my head don't feel worth it. Do they need to see your website once you have registered?

I'll have to check the 'confirmation' emails haven't been deleted. I think I may still have a petrol receipt from a tour I've just finished.

Back to the 'masseuse' bit. If I say this, what will I have to deliberately avoid showing? I just know I'll slip up somewhere  ;)

Thanks again girls, I really appreciate it xxx

Your accountant will give you the answers to your questions, it's their job!

Most accountants simply want to do the books and that's it. If they misbehave, discriminate you can report them to their professional body, so worst you should get is "Can't take you on".

Expenses reduce profit = less tax to pay so good idea to keep receipts.

True. The worst I could get would be they wouldn't want to take me on.

I know this varies completely from area to area, but how much approx does it cost to have an accountant? How does that bit work? Do u just pay them for their time, if u speak to them & when u give them your booms to sort out? Is it payment by the hour?

Xxx

The London accountants on the tax relief website quoted me about ?600-?700 for a simple self assessment (I keep all my records and receipts and registered myself as self employed). I asked a local, and very well established, escort who she used. Lo and behold, was recommended a lovely man who charges farrrrr less and is very no nonsense (and totally disinterested in the fact I'm a sex worker, which I like!)

Reni

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Re: Tax - accountants, deductible expenses, general information
« Reply #11 on: 27 September 2014, 08:06:37 pm »
Also regarding prices...
In Newcastle I only pay ?275 yearly.
I do a spreadsheet with income and expenditure on and organise my receipts and bank statements in order for him. So it's quite easy form him to cross reference everything.

Cat_BBW

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Re: Tax - accountants, deductible expenses, general information
« Reply #12 on: 28 September 2014, 12:17:56 am »

*Do u have to claim expenses? I don't have receipts of any expenses so do I just not fill that in?

No you don't have to tell them your expenses, but this will mean you will pay more in tax.


* Do I have to provide monthly bank statements?

Yes, but not in the way I think you might be thinking. You should be saving a copy of your monthly bank statements with your monthly (yearly) accounts (income & expenses). You don't need to send them off to HMRC, it's just a case of keeping them safe for 6 years.

* How exactly do you register? I did see a phone number somewhere but don't know where  ??? I've tried looking on the HMRC website but that's as complicated as long division  :-\

You phone them and say you want to register as self-emplyed. It's really that simple. They will walk you through the process.

Don't be scared :) It's far more scary trying to dodge them than being all above board :)

starrynight

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Re: Tax - accountants, deductible expenses, general information
« Reply #13 on: 28 September 2014, 06:03:35 pm »
Thanks again ladies for the replies. Thanks Cat for answering them questions. I'm making a mental note of everything & going to write stuff down that I need to remember. I really appreciate all the replies & the inbox replies I've had & continue to have. I really wish I'd found this site sooner, you've been soooo helpful & I'm incredibly grateful.

If anyone else has anything more to add, please do :-)

Xxxc

starrynight

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Re: Tax - accountants, deductible expenses, general information
« Reply #14 on: 01 October 2014, 06:52:16 pm »
I've managed to find some accountants close-ish to me that seem like small firms/independant ones. I've emailed three, so fingers crossed.

Can I trust accountants enough to give them my home address? Some of them looked like home addresses where I found them on a website so do I arrange to meet them at my home?

I've decided just to say that I work in the adult industry and see if they are happy with that. Once someone has got back in touch, happy enough to help, is there anything I need to bear in mind or anything? Any advice appreciated :-)