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Oh its not as bad as all that and you will have a
interesting list of tax deductibles!
Tax is a fact of life I'm afraid and the Inland Revenue will catch up
with you eventually so get yourself registered as soon as you go into
business or at least within the first three months anyway as that is how
long you get before you put yourself in a position where non-registration
could get you fined.
Its painless to register, just pop
along to www.hmrc.gov.uk
(the site for the newly combined Inland Revenue and Customs & Excise
Departments) and fill out the electronic form. Once
that's done you will be asked to start paying a mere £2.10 a week in NI
contributions (usually done by 4 weekly direct debit) . Then, you just
need to keep records of your ins and outs (as it were!) fill in a tax
return at the end of year and pay an extra lump of NI contribution and
some tax!
Easy innt! Well obviously there is
more to it than that but the Inland Revenue are very helpful. If you
declare your occupation as an escort (some ladies do, some dont) don't
forget you can claim condoms, travel expenses and a lot of the things
any other self employed person will be claiming as tax deductible. Keep
a record otherwise you'll end up paying too much tax.
As an example, for anyone starting
on February 2004, your tax year would be 2003/4. You'll need to keep
records of your ins and outs up until the tax year ends on April 5 2004.
You then will have till September 2004 to send in a form if you want the
Inland Revenue to work out your tax for you or till the end of January
2005 if you want to do it yourself (tip: if you register for on-line self
assessment, it gets worked out for you anyway and you still get to January
to do it).
You will then pay your tax for 2003/4
in January plus half of that much again to cover some of your tax
liability for 2004/5 which will have started on April 6 2004, plus some
extra National Insurance. Hence it pays to put money aside each month so
its not too much of a shock - Beth recommends that you set aside about
30%of your earnings and put it into a savings account so you gain interest
while its there as well as probably having a little extra bonus at the end
of year.
We are not tax
experts here but good advice can be found at
www.taxrelief4escorts.co.uk as it can be at the
Inland Revenue itself whose phone operatives manage to make you forget the
stereotypically nasty image of the tax man.
IR contact details
here:
The friendly tax people
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