I realise the topic of accountants and tax deductible expenses have discussed quite a lot on other threads and I think I've read most of them. I do tend to worry a lot so have a lot of questions. I keep worrying about various scenarios so decided to post on here.
I had an accountant about 4 years ago who was extremely professional but I think I was the first escort she had ever worked with. I was registered as a therapist/ massage therapist. My accountant told me I could claim travel, massage oil,office costs part of my rent and heating costs, but she said I could not claim lube, lingerie, condoms or sex toys as expenses as she said they were nothing to do with the job of therapist. I went along with that then started doing my own tax returns, still following her previous advice.
I read this thread:
http://www.saafe.info/main/index.php?topic=23597.0
Where Amy says
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.
That sounds really great as I spend a lot of money on really expensive lube, condoms, toys and lingerie just for escorting. However I'm worried that HMRC does decide to investigate me they will obviously find out I am an escort rather than a therapist or masseuse from my receipts for these types of products. If they did decide to audit my records, would it then be on my record that I am actually a sex worker/escort rather than what I put on my tax returns? While this would not be the end of the world as I know I'm not doing anything wrong, I'd really rather this did appear on any of my records.
I know that HMRC will only ask for evidence of expenses if they decide to audit you, but it's still something I worry about a lot. I just wondered if anyone here has actually been audited and what there experience was like. For example, were you told you should not have put lube and sex toys as expenses? I have tried to make sure I do everything by the book, and have always paid my taxes but still the thought of being investigated freaks me out!
I also read in another thread:
http://www.saafe.info/main/index.php?topic=3670.msg33825#msg33825
As far as clothing goes (or any other expenses), you can claim for any cost which has been incurred entirely in the course of running your business, so civvy clothes would normally be a no no (as it could be argued that they would be worn for personal use too). I did have to buy a smart outfit for a particular booking a couple of years ago because I didn't have anything suitable, and I did put that through - the main thing to remember with any expense you claim is that you need to be able to prove it - I kept the ticket from the event I was going to on this occasion and it was fine.
I buy a lot of lingerie, dresses and shoes wholly and exclusively for escorting. I never want to wear any of my escorting clothes or shoes in any other situation. But how can I prove all those things are just for escorting?
Perhaps it would be safer to just leave clothes and shoes off my expenses to avoid this problem.
As I said before my previous accountant said I could not claim for any of those things if I put "therapist" on my tax return. But I can see from this forum that other escorts claim these as expenses. I have also been told by an escort friend of mine that she was advised by her accountant that these were tax deductible expenses so perhaps I need to find another accountant.
Which leads me to my next question. My friend recommended Abbingdon Knight and she said they are really good and help with business advice in addition to her tax returns. They seem very expensive to me, she pays ?59 per month. I know a few other escorts pay around ?700 a year for an accountant but I'm looking for an accountant who charges no more ?400-450 for a tax return. Since I'm considering buying a house this year I'm looking for a chartered accountant (in London) so if anyone has any recommendations that would be great. ideally I would want an accountant who has experience working with escorts but does not work solely with people in the sex industry. If they have their own website with online reviews that would also be great. The reason I do not want an accountant who works soley with sex workers is I would not want people to google my accountants name and see that they only work with escorts etc and therefore guess that I am an escort.
If anyone knows an accountant who will not have a problem with me claiming condoms, lube and lingerie as expenses while keeping "therapist" on my tax records that would be great too. Feel free to PM me.
I emailed several of the accounts on taxrelief4escorts and have so far only heard back from one. His rates were in my price range but he's not based in London and seems only to deal with emails not phone calls. I feel much more comfortable being able to call my accountant or even meet face to face.
I just told him I was an escort looking for an accountant and he sent me some advice which got me a bit worried that I have not been keeping adequate enough records. He told me I need to keep records of my client's first name, hours taken and fees received and whether it is an incall or outcall. I have not been keeping any records like this and did not realise it was necessary. I have been keeping a record of all my income and expenses but definitely not clients first names (I don't even ask their names unless they offer to tell me). I don't keep records of when they came and for how long etc. If I am not registered as an escort do I really need this information about bookings and clients? Does everyone else do this?
Sorry for all the questions I'm just very confused at the moment and would appreciate any advice.
