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Questions and Answers / Re: Where to put my money?
« on: March 31, 2011, 12:19:02 AM »
Right folks-apologies for lengthy tome but here is the advice from HMRC for sex workers!
"why tax? Why me? This is meant to explain WHY you should pay tax, WHO should pay tax, HOW to register and HOW TO COMPLY with the basic legal requirements of self assesment and national insurance"
Tax collecting-the worlds 3rd oldest profession (prostitution & spying are reputedly the 1st & 2nd respectively)
If you do become tax registered benefits can include:
* Financial security
* Support a mortgage or loan application
* Financial history for new job/career
* Tax credits/benefits
* Pension
* PEACE OF MIND
No one likes to pay tax-not even the tax man but... If you do not register:
* someone might shop you
* you might break the law
* you may face a fine or penalty
* you may get a criminal record
* you may get a surprise visit from the taxman
Could you save money?
Often where once benefits have been stopped, the worker has become registered for tax and the benefits reworked that they find they are better off. Obviously not always true but where tax credits aome in as a top up to the other benefits, then it is possible. Also by registering for tax you are automatically registering for national insurance. This will be beneficial as contributions at Class 2 will count towards-basic state pensions, incapacity benefits, maternity allowance and bereavement benefits. Every case is unique so the message here is that it could save you money in the long run and if HMRC have to come to you, remember that you could have fines and penalties to pay on top of the tax on your income.
Local education teams run seminars throughout the UK covering 'becoming self employed' 'self assesment' go to www.hmrc.gov/bst/index.htm
Also there are business advice seminars, more info at www.businessadviceday.gov.uk
Consider also business link who can help with tax advice and national insurance & all aspects of working for yourself www.businesslink.gov.uk/bdotg/action/home
There are loads of expenses allowable (for example hotel fees, adverts, rent, taxis, car costs)that you can claim for so you can often end up paying very little tax-my advice would always be get a good accountant (and you can claim that too!)
Hope this helps
Shelly
and you can be 'an alternative therapist', masseur, home help, hatever you want to call yourself is fine!
"why tax? Why me? This is meant to explain WHY you should pay tax, WHO should pay tax, HOW to register and HOW TO COMPLY with the basic legal requirements of self assesment and national insurance"
Tax collecting-the worlds 3rd oldest profession (prostitution & spying are reputedly the 1st & 2nd respectively)
If you do become tax registered benefits can include:
* Financial security
* Support a mortgage or loan application
* Financial history for new job/career
* Tax credits/benefits
* Pension
* PEACE OF MIND
No one likes to pay tax-not even the tax man but... If you do not register:
* someone might shop you
* you might break the law
* you may face a fine or penalty
* you may get a criminal record
* you may get a surprise visit from the taxman
Could you save money?
Often where once benefits have been stopped, the worker has become registered for tax and the benefits reworked that they find they are better off. Obviously not always true but where tax credits aome in as a top up to the other benefits, then it is possible. Also by registering for tax you are automatically registering for national insurance. This will be beneficial as contributions at Class 2 will count towards-basic state pensions, incapacity benefits, maternity allowance and bereavement benefits. Every case is unique so the message here is that it could save you money in the long run and if HMRC have to come to you, remember that you could have fines and penalties to pay on top of the tax on your income.
Local education teams run seminars throughout the UK covering 'becoming self employed' 'self assesment' go to www.hmrc.gov/bst/index.htm
Also there are business advice seminars, more info at www.businessadviceday.gov.uk
Consider also business link who can help with tax advice and national insurance & all aspects of working for yourself www.businesslink.gov.uk/bdotg/action/home
There are loads of expenses allowable (for example hotel fees, adverts, rent, taxis, car costs)that you can claim for so you can often end up paying very little tax-my advice would always be get a good accountant (and you can claim that too!)
Hope this helps
Shelly
and you can be 'an alternative therapist', masseur, home help, hatever you want to call yourself is fine!
