Author Topic: Huge NI mess, feeling like a complete moron. (Read 3921 times)

jhalen · « **on:** 11 April 2011, 10:26:14 am »

Sorry if this is a repeat post, but I couldn't find much else on the subject. Could be I wasn't looking in the right place, feel free to move/delete as appropriate

Right, so I've been escorting in the UK for a little over a year now. When I started out, I was massively misinformed about self-employment and national insurance by the owner of the parlour in which I was working at the time (didn't last long, I'm completely indie now). While I'm sure she had the best of intentions, I now realise that she had literally no clue what she was talking about. I've been under the impression that if you're self-employed, you only have to pay NI if you make over a certain amount of money. As such, I haven't paid any NI at all or filled out a tax form or anything like that and while it hasn't been a problem thus far because I've been on the lease with my boyfriend, I'm now about to start renting my own place and absolutely terrified that letting agencies will turn me away because I haven't paid up and I have no records of income (save for bank statements which are online and only go back to the middle of January 2011). Paying the money won't be an issue at all, but I have no idea how to go about sorting it out and making it right. I'm not the sort of person to try and avoid this kind of stuff, I would've been paying the entire time if I'd known I was meant to. I feel like such an idiot

strawberry · « **Reply #1 on:** 11 April 2011, 10:38:12 am »

Right.

Letting agents do not know and will not be bothered about your tax or NI affairs. They will however need to see some sort of proof of income, and usually a credit check. Cash upfront can get around this, usually six months in advance so a hefty sum but I've had a few agents(as well a private landlords), see it as covering up for something dodgy - I was declined from applying once or twice on this basis.

You make 2 classes of NI payment when self-employed, one are statutory paid each month by direct debit - the others are paid on your profits each year.

Anyway the most important thing is that you will now have an incomplete NI record. This can affect future benefit claims, and your state pension should you ever claim them. Good news is you can ask for an NI update and pay any shortfall. I think it's usually around ?300-400 per year. For pension purposes you can have quite a gap now but make sure it doesn't become significant, and benefits well quite a few require full NI contributions within the previous 2-3 tax years.

Anika Mae · « **Reply #2 on:** 11 April 2011, 05:40:01 pm »

Quote from: jhalen on 11 April 2011, 10:26:14 am

I've been under the impression that if you're self-employed, you only have to pay NI if you make over a certain amount of money.

This is true, but the threashold is something like ?6k a year and it doesn't sound like that's what you're dealing with. (Also, you should still file tax returns and make a claim for not having to pay NI.)

You can pay Class II NIC monthly by direct debit, but if you don't it would have been billed quarterly from when you became self-employed. (As of this month the bills come every January and July instead.) You're supposed to pay each bill within 30 days, so you're in arrears and may be fined if you tell them about it. However, I've paid maybe 1 in 3 of my bills on time, generally leaving the arrears to build up for up to a year and then paying it all at once, and I never got fined for that. If you register now and say you're ready to pay it all there's a good chance you won't have to pay any extra.

For Income Tax and Class IV NIC, if you started work before 06/04/2010 you should have submitted a tax return by the end of January (just for the stuff up to the previous April) and then paid whatever tax and NIC were due. If you weren't earning anything the rest of the tax year than it's likely that you were under the threashold anyway so probably fine. If you earned more than about ?6k that year then you owe tax, but you're not horribly late in paying it so it's not going to be a disaster if you declare it. Anything you've earned since the 06/04/2010 doesn't need to be declared yet and you have plenty of time to sort it out.

So, get on to HMRC and register now. If you just worked for a couple of weeks before the start of the last tax year I'd be tempted to leave it out to simplify things, but I'm not advising you do that, think it through yourself. You can get everything sorted out and it won't really be painful. Do start saving well for your first proper tax bill though (you're a year behind with the saving), or that'll hurt.

jhalen · « **Reply #3 on:** 15 April 2011, 09:23:50 am »

Thanks so much for that ladies, it was most helpful! Everything is in the process of being sorted out now and I feel as though a weight has been lifted from my shoulders!

Unfortunately, I'm still not having any luck with the letting agency. I've been told that, as a self-employed person, I am required by law to have an accountant. This can't be right, can it? Most other escorts/cam girls I know don't have accountants. I suppose I'll try my luck elsewhere, thanks again xx

Simone · « **Reply #4 on:** 15 April 2011, 09:30:30 am »

Glad you are getting everything sorted

Who told you that you need an accountant by law if you are self employed though?, was it the letting agent

That is a load of rubbish as far as I am aware. I don't have an accountant, I do my own tax return and have been doing so for 2 years now!

amy · « **Reply #5 on:** 15 April 2011, 09:30:40 am »

Quote from: jhalen on 15 April 2011, 09:23:50 am

Thanks so much for that ladies, it was most helpful! Everything is in the process of being sorted out now and I feel as though a weight has been lifted from my shoulders! Unfortunately, I'm still not having any luck with the letting agency. I've been told that, as a self-employed person, I am required by law to have an accountant. This can't be right, can it? Most other escorts/cam girls I know don't have accountants. I suppose I'll try my luck elsewhere, thanks again xx

No, it's not right. Whoever told you that is talking out of their arse. See, nice and simple again

.

Glad you're feeling better - there are quite a few threads on here with tips about renting, picking flats and getting past letting agents if you have a root about with the Search box

.

Anika Mae · « **Reply #6 on:** 15 April 2011, 10:27:49 am »

Absolute nonsense. Having an accountant can be useful if you need evidence of your income because some people/institutions think you can't be trusted not to tell HMRC you earn three times as much as you really do unless you have an accountant, or something. Submitting your own tax return is perfectly normal though and it's what HMRC assume you'll do if you haven't told them that someone else is acting as your agent.

April Showers · « **Reply #7 on:** 15 April 2011, 09:30:21 pm »

I think i know what you mean as i have just been lookng for a new flat ( work flat ) to and as i am self employed they ( the letting agency) want a accountant to confirm your earnings ( which i have got) on the forms the one i just havent signed for ;-( asked more questions than for a mortgage

and put so many clauses in it so i would owe money for everything even if i overpaid my rent i would owe them money ...what the F@ck is that about i have waited six weeks for this flat ,supposed to be private landlord then told me he wanted to go through his brothers agency , so back looking again as i didn't want to sign my life away !
I think it depends on the agents what questions they ask on the forms as i have never been asked for as much information off anyone else . ...
So just try another letting agency or private landlord and good luck .

JaneyP · « **Reply #8 on:** 19 April 2011, 01:00:33 pm »

That's true. It differs from agent to agent and your'e best shopping around. If you fit into there tick boxes you're OK if not that's life.

I've never heard of law requiring you to have an accountant if you're self employed so that's an outright blag for a start!

sammy s · « **Reply #9 on:** 19 April 2011, 01:28:23 pm »

I worked in a letting agency for years in London.

Here are some tips:

1. Always try to go through a private landlord. You can find their properties on places like Gumtree and Craigslist.

2. Tell them you are self employed and you can get a guarantor (someone who is either a family member/non family member who is UK based and in full time secure work. This means that if you ever fall behind with your rent it will come out of their account instead so the landlord never recieves nothing).

3. If they ask for accountant proof/credit reports etc then you absolutely dont have to provide them. If you have a guarantor then there is no need for them to see things like that as they will be getting the rent every month no matter what.

4. If they ask for bank statements then you will probably need to show them some. Just say you get paid cash in hand from your job and you put it into your account when you need it.
It's definitely a good thing to be paying tax as an escort as you can also show your potential landlord proof of you pay NI etc.

5. Offer 2 months rent upfront, plus a 6 week deposit. They will be all over you like a rash if you offer a lump sum. I wouldnt advise offering something like 6 months upfront as they will think it's a bit weird and wonder why you want to do that.

6. If you need a previous landlord reference then get one of the girls on here to do it for you. All it involves is a phone call or an email. Or get one of your personal friends to do it for you. If you have a real previous landlord reference though then of course use that and not a fake one.

7. It always helps to have a glowing character reference from someone like an old boss, teacher, flat mate.

8. It's good to always opt for a 6 month lease or a 1 year lease with a break clause in it. This way, if you end up hating the flat or the landlord is a nightmare etc then you can get out quickly.

9. Be aware that your landlord MUST by law give 24 hours written notice (text, email, letter) to come over to the flat. If they just show up then this is against the law and they must NEVER let themselves in without your permission.

10. Your landlord must bond your deposit in one of the bonding schemes. If they dont do this within the appropriate time frame then they are liable to give you 3 x the amount of the deposit. Check out the DPS for more info.

Simone · « **Reply #10 on:** 19 April 2011, 08:17:04 pm »

Quote from: sammy s on 19 April 2011, 01:28:23 pm

I worked in a letting agency for years in London.

Here are some tips:

1. Always try to go through a private landlord. You can find their properties on places like Gumtree and Craigslist.

2. Tell them you are self employed and you can get a guarantor (someone who is either a family member/non family member who is UK based and in full time secure work. This means that if you ever fall behind with your rent it will come out of their account instead so the landlord never recieves nothing).

3. If they ask for accountant proof/credit reports etc then you absolutely dont have to provide them. If you have a guarantor then there is no need for them to see things like that as they will be getting the rent every month no matter what.

4. If they ask for bank statements then you will probably need to show them some. Just say you get paid cash in hand from your job and you put it into your account when you need it.
It's definitely a good thing to be paying tax as an escort as you can also show your potential landlord proof of you pay NI etc.

5. Offer 2 months rent upfront, plus a 6 week deposit. They will be all over you like a rash if you offer a lump sum. I wouldnt advise offering something like 6 months upfront as they will think it's a bit weird and wonder why you want to do that.

6. If you need a previous landlord reference then get one of the girls on here to do it for you. All it involves is a phone call or an email. Or get one of your personal friends to do it for you. If you have a real previous landlord reference though then of course use that and not a fake one.

7. It always helps to have a glowing character reference from someone like an old boss, teacher, flat mate.

8. It's good to always opt for a 6 month lease or a 1 year lease with a break clause in it. This way, if you end up hating the flat or the landlord is a nightmare etc then you can get out quickly.

9. Be aware that your landlord MUST by law give 24 hours written notice (text, email, letter) to come over to the flat. If they just show up then this is against the law and they must NEVER let themselves in without your permission.

10. Your landlord must bond your deposit in one of the bonding schemes. If they dont do this within the appropriate time frame then they are liable to give you 3 x the amount of the deposit. Check out the DPS for more info.

Thank you for posting this Sammy. I'm planning on renting somewhere soon and this will be really helpful

EmilyJones · « **Reply #11 on:** 19 April 2011, 10:12:52 pm »

Quote from: sammy s on 19 April 2011, 01:28:23 pm

I worked in a letting agency for years in London.

Here are some tips:

These are, indeed, amazing! Would you mind if we put them in the 'Articles' section of the forum (in a nice new thread with a very descriptive title) so that it's more easily found (and linked to) again in future? You can either copy your post over yourself, or I can do it for you and put your name in. Up to you.

sammy s · « **Reply #12 on:** 20 April 2011, 12:37:19 am »

Please go ahead and do that Emily.
The key to getting a flat you want when self employed is to have a guarantor. Most letting agencies and landlords will be a lot less strict about other things if you have one.
It's pointless trying to rent through the big agencies like Foxtons and Knight Frank etc (not sure if it's ok to name them on here so please delete if not allowed) because they will be incredibly strict and will want a ridiculous amount of references, statements and personal information.
Go for the private landlords or the very small independent letting agencies who will be desperate to make some money out of you and will bend the rules to ensure they do so.

kerst · « **Reply #13 on:** 26 April 2011, 03:19:36 pm »

Quote from: Simone on 15 April 2011, 09:30:30 am

Glad you are getting everything sorted Who told you that you need an accountant by law if you are self employed though?, was it the letting agent That is a load of rubbish as far as I am aware. I don't have an accountant, I do my own tax return and have been doing so for 2 years now!

Yes, this is total rubbish! That's why it's called self assessment - because you are allowed to do it yourself! Some people choose to get accountants because they struggle to DIY, or can't be bothered, or feel reassured that a professional is doing it, but there is certainly nothing saying you have to.

See also the main SAAFE.info site for more Support And Advice For Escorts

Author Topic: Huge NI mess, feeling like a complete moron. (Read 3921 times)

jhalen

Huge NI mess, feeling like a complete moron.

strawberry

Re: Huge NI mess, feeling like a complete moron.

Anika Mae

Re: Huge NI mess, feeling like a complete moron.

jhalen

Re: Huge NI mess, feeling like a complete moron.

Simone

Re: Huge NI mess, feeling like a complete moron.

amy

Re: Huge NI mess, feeling like a complete moron.

Anika Mae

Re: Huge NI mess, feeling like a complete moron.

April Showers

Re: Huge NI mess, feeling like a complete moron.

JaneyP

Re: Huge NI mess, feeling like a complete moron.

sammy s

Re: Huge NI mess, feeling like a complete moron.

Simone

Re: Huge NI mess, feeling like a complete moron.

EmilyJones

Re: Huge NI mess, feeling like a complete moron.

sammy s

Re: Huge NI mess, feeling like a complete moron.

kerst

Re: Huge NI mess, feeling like a complete moron.