Queries re going Self-Employed

[poshie]

Hi there,

I’m UK based and have recently started Phone Chatting & Webcamming on AW and want to go Self-Employed, I understand I can do this through the HMRC website, however before doing so I have some queries.

• How does it pan out in relation to ‘wage slips’ as I assume they will be asking for those.. or equivalent, i.e., proof of income/documentary evidence..… I don’t want to lead them in direction of my AW profile!... so will bank statements suffice (that my wages go into) instead of wage slips? Am just wondering how to get round this angle (I’ve never been SE before).

• Someone said I should register to be a sole-trader, is that a good idea and has anyone else done that from here?

• Also I’ve read a few other posts elsewhere re being Self-Employed and folk saying they put down all sorts of Occupations such as Therapist, Counsellor, Customer Service etc etc… other than the job they actually do…… so am assuming its not a good idea to tell them you are a ‘Webcammer’ - maybe someone could explain why………as I was going to put Webcammer but now am unsure…….. (also I would have thought it better to be upfront about it from the perspective that it would be more beneficial if say you wanted to reclaim tax expenses say for phone, internet etc).

I would really appreciate if I got some clarity re the above as am anxious to go Self-Employed and am finding the things above a bit of a stumbling block. Thanks in advance.

[iluvjem]

I am down as entertainment (sole trader)

If you are doing cam/phone then all your payments will be electronic so easy to provide evidence. You dont have to give them your AW address, they dont need that.

Ive been doing it over 4 years and never been questioned about anything. You are right being more upfront about what you do allows you to claim for the right things. I have never had to tell the tax man I dildo myself on cam lol

[friendly accountant]

I would really appreciate if I got some clarity re the above as am anxious to go Self-Employed and am finding the things above a bit of a stumbling block. Thanks in advance.

It's a blatant plug and I make no apologies for it

Have a look at www.xxxtax.com

And then give me a ring or email me if you want to chat.

[Trinity-Belle]

It's a blatant plug and I make no apologies for it

Have a look at www.xxxtax.com

And then give me a ring or email me if you want to chat.

Nothing wrong with a bit of self promotion!

[Trinity-Belle]

How does it pan out in relation to ‘wage slips’ as I assume they will be asking for those.. or equivalent, i.e., proof of income/documentary evidence..… I don’t want to lead them in direction of my AW profile!... so will bank statements suffice (that my wages go into) instead of wage slips? Am just wondering how to get round this angle (I’ve never been SE before).

You can simplify all of your dealing with AW... any costs which are directly incurred through AW are effectively deducted at source (i.e. featured slots you pay for, the admin charge when you withdraw funds etc) so all you really need accounting wise is the nett value of any withdrawals you make... so yes, just showing the income which appears in your bank is enough.

Someone said I should register to be a sole-trader, is that a good idea and has anyone else done that from here?

I'm a sole trader... I think? Haha! I'd have to check with my accountant! Pretty sure that I am though!

Also I’ve read a few other posts elsewhere re being Self-Employed and folk saying they put down all sorts of Occupations such as Therapist, Counsellor, Customer Service etc etc… other than the job they actually do…… so am assuming its not a good idea to tell them you are a ‘Webcammer’ - maybe someone could explain why………as I was going to put Webcammer but now am unsure…….. (also I would have thought it better to be upfront about it from the perspective that it would be more beneficial if say you wanted to reclaim tax expenses say for phone, internet etc).

You can put down pretty much what ever you want within reason, but it's best to use something which describes what you do appropriately... if you say you are a "counsellor" or a "therapist" then you might find it difficult to explain away some of your expenses claims? Not sure that most counsellors get through much lube in the course of their business or have a great need for buying PVC nurses outfits and 8" dildos! lol

I think a lot of girls put "model" or "entertainer" or even "adult entertainer"?

If there is one thing I would absolutely recommend, though, it would be to use the services of an accountant.

They don't cost as much as you think, will answer all of these questions for you (properly!) and will almost certainly save you more in tax than they cost you.

[iluvjem]

If there is one thing I would absolutely recommend, though, it would be to use the services of an accountant.

They don't cost as much as you think, will answer all of these questions for you (properly!) and will almost certainly save you more in tax than they cost you.

I agree I've always used an accountant but mainly as I've always run two business together...and i am rather hopeless (its the 11th and I still havent sent my monthly paperwork )

[Trinity-Belle]

If there is one thing I would absolutely recommend, though, it would be to use the services of an accountant.

They don't cost as much as you think, will answer all of these questions for you (properly!) and will almost certainly save you more in tax than they cost you.

I agree I've always used an accountant but mainly as I've always run two business together...and i am rather hopeless (its the 11th and I still havent sent my monthly paperwork

Haha!

Every year I say I will do my accounts in April and send them off so that I know what I am in for.... and every year I end up sending them in the last week of January!

It's lucky my accounts are so simple!

[admin]

Webcammers books are quite basic, so with this in mind can someone explain how an accountant can save you money?

I have discussed this on other forums and no-one was able to still say at the end that they can save you more money than if you did the research and done it yourself.

For me an accountant saves time, effort and gives peace of mind.

[Classy_Katy]

Friendly accountant gave me some free and much needed advice...so I can definitely recommend a call.

It's not all completely straight forward, even where you're like me and only receive money from Adultwork and have already come across the workings of self-employment and HMRC but from another angle.

It's not just about saving money...it's about getting things right to save the hassle of correcting mistakes/being investigated etc.

Getting it right also saves money when we would otherwise have to pay in penalties and interest, which can be excessive and very hard to recover from.

Knowing how to legally avoid paying tax saves money and although I can research, I doubt I could do it to the extent that my new found knowledge matches that of an experienced accountant who knows all the details...it's not always a case of "one size fits all".

[Trinity-Belle]

I think there are lots of ways, but the main ones are probably:

• They know what allowances and exemptions apply
  
• The know what expenses are allowable and which are not
  
• They can advise you on things you might otherwise fall foul of.

An accountant digs up all manner of little allowances and grants and such like which I would never, without one, have known existed.

My accountant tells me which expenses are and are not allowable, so I know I shouldn't come unstuck if I ever do get investigated because he has approved all of my expenses, and he also advised me on what the most "tax efficient" way of dealing with my motoring expenses. And on the subject of motoring, he has recently advised me on the various tax benefits of leasing, getting a finance deal (which is very cheap at the moment) or paying cash when I buy my new car in the spring.

He has also clued me in to things I never knew I could claim for, like subsistence for example, as well as an allowance for "use of home". Last year I got nearly £500 of subsistence which equates to, what, £200 off my tax bill? So those two items together on their own more than pay his fee.

I don't have to actually do anything... I just send him my receipts and my mileage log and he does the rest... I just get an electronic copy of my tax return to sign and a message telling me how much is due in January, then a reminder to tell me how much I need to pay on account in July.

If I need to discuss frightening things which I know nothing about (like VAT) then he is right there on the end of the phone at no extra cost.

And when the budget comes around, he notifies me of any changes which affect me.

I got some kind of "small business start-up" allowance when I first started... lasted for 2 years!

Just all kinds of things.

As for allowable expenses... well, I am going to quote part of my reply on a different forum when a similar question came up....

With the tax return comes advisory notes that explains what allowable expenses are

Haha!

Yes, well... that is where having an accountant comes in handy.

Tell, me... ****... I bought a leather dress last week. It is for Trinny's wardrobe (I wouldn't be seen dead in it!). It cost me £440.

Is that allowable or not?

Clothing is absolutely not allowable except for some items of safety clothing and if you have to buy your own uniform you can claim a "uniform allowance" (which is not the same as an allowable expense).

But I don't use this dress for "warmth and decency"... to me it is a prop... and specifically designed for indecency!

Allowable or not?

Knowing the difference is potentially £176 on or off my tax bill.

I could just guess. Maybe include it and leave myself open to trouble if I ever get investigated - I'll just have to blag it if the situation arises.

Or maybe I could play it safe and just leave it out... pay the extra tax and take it on the chin.

Alternatively... I could employ an accountant.

The other really significant advantage of using an accountant is that if I want any kind of credit (esp. mortgage) then I need to be able to show the bank 3 years worth of accounts. It's not like the old days when you could just say to the bank "look at my current account" and they would say "That'll do nicely" - no, it's all changed... they want to see the books.

So yes, unless you are just playing at it and earning pin money, it is definitely well worth a few hundred quid a year to employ an accountant. Blimey, my broadband cost me more than my accountant... it's a no brainer as far as I am concerned.