CHARGES

[Tara25]

lmao thats probably why i dont do so well haha x

[Ms Paige Preston]

I quickly ran this past an accountant friend of mine and he believes there are a couple of issues

1] There may well be areas where they are charging VAT where there shouldnt be.

2] There may be areas where by doing things in the way that theyre doing them they are in effect charging vat twice on the same money.

And he says what other people are saying is correct if they are charging VAT then they should be displaying a VAT registration number on their site which they dont appear to be doing.

He also pointed out that the big winner here will be HMRC as VAT works on the basis that they get to keep the difference between the input and the output charges in other words you the business owner pay what you collect minus what youve payed out in VAT but i i suspect very few of you will be [or plan to ] register for VAT so they will get to keep 100% of the VAT you have paid as you wont be charging it or collecting it so wont have and input VAT to set off against your output VAT.

I only work a couple of days a week [ but spend quite a bit on advertising and promotion with AW ] so if i.ve understood it correctly i could easily declare less that the VAT earnings limit amount if i registered as say as a beautician] so therefore not have to charge it but be able to claim back what i.ve paid.

Are any of you on here VAT registered either as an escort or as something else but declaring your escort earnings thru it ?

That then leaves us with what he thinks is the major issue with all this ie the last line of the statement that AW sent us on the subject. The statement that AW has been sold and changed hands on the same day that all tis VAT stuff came into force.

If thats genuinely true then alls fine and no problems but have they manipulated a sale in some way for the new owners to avoid any liability for tax they should have been collecting but havnt in the past. and what will happen if its proved theyve done this and HMRC [or whoever] go after them to recover the missing charges.

But if nothing else it looks like its a bloody minefield thats gonna take a hell of a lot of sorting out.

[Tara25]

this just gets more and more confusing for me-one things for sure tho its gonna have a big impact on my earnings and this is the only site im on xxx

[lara]

That then leaves us with what he thinks is the major issue with all this ie the last line of the statement that AW sent us on the subject. The statement that AW has been sold and changed hands on the same day that all tis VAT stuff came into force.

If thats genuinely true then alls fine and no problems but have they manipulated a sale in some way for the new owners to avoid any liability for tax they should have been collecting but havnt in the past. and what will happen if its proved theyve done this and HMRC [or whoever] go after them to recover the missing charges.

Disastrous senario - I'm sure Uk Gov could totally block access to site from UK, then we'd all be skewed.....I reckon AW would soon relax the ban on use of a proxy server! : )

[MissLouiseKay]

my accountant has informed me that the VAT we are now paying is tax deductible so will be taken off your tax bill at the end of the year like your expenses.

EDIT: I stand corrected you get tax relief on 20% of the VAT you pay, apologises

[Strawberryblonde]

Some SPs have advised that to put all your eggs into one basket is not a good idea, and indeed during outages there have been the starts of looking at alternatives, but everyone ends up forgetting this once AW settles down again. I don't think they'll disappear. I do think someone else might try to buy them out if they do end up in trouble.

[HarlotWitch]

No, those of us who charge high rates are going to suffer the most. Those of you who were always cheaper now have room to raise your prices accordingly.

Assuming we're deemed as "worth it". People just aren't going to bother paying for girls like me at all.

[HarlotWitch]

Adding VAT on both sides is really messed up... it doesn't make any sense. Only the customer should be charged. They can act like purchasing slots etc. is charging for a "product" but ultimately we're making money for them...

[MissLouiseKay]

Adding VAT on both sides is really messed up... it doesn't make any sense. Only the customer should be charged. They can act like purchasing slots etc. is charging for a "product" but ultimately we're making money for them...

Its not technically we are a client of adultwork as we are buying there services. Like it or not thats how it is.

Its not affected me at all and at the end of the day I still have to work I'll just have to work a bit harder if it does.

[Tara25]

we arent all that lucky tho