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OnlyFans and VAT

I understand from a number of clients that OnlyFans have recently sent out a text which included this statement: As a result, OnlyFans will collect VAT as required and remit to the UK and EU tax authorities on the Creator’s behalf. As a Creator, you won’t need to fill out any forms, register for anything or send anything out. I disagree with this statement. The income you receive from OnlyFans is still taxable so you must register with HMRC and pay tax on your profits.The income counts towar...

When will I hear about the self-employed grant?

The government have said that most people who are self-employed will be able to claim a grant though the (COVID-19) Self-employment Income Support Scheme. You cannot apply for this scheme yet. HMRC will contact you if you are eligible for the scheme and invite you to apply online. HMRC have said you do not need to contact them and doing so will only delay the introduction of the scheme. I can’t see HMRC contacting you before the end of April because the deadline for submitting tax returns has ...

My advice to the self-employed who haven’t submitted their 2019 tax return and who are worried about their tax bill

The government has introduced the Self-employment Income Support Scheme to help the self-employed affected by COVID-19 It’s a generous scheme – you’ll receive a taxable grant which will be (in simple terms) 80% of the average profits from the last three tax years. It is limited to £2,500 per month for three months and will be paid into your bank account, in one instalment, at about the end of June 2020. If you haven’t submitted your 2019 tax yet (the one covering the year to 5 April 201...

The Self-employment Income Support Scheme

This is a copy of the government email I have received.I have highlighted the important points....

The Chancellor’s latest measures to support the self-employed affected by COVID-19

If you’re ill or you’ve been advised to stay at home If you are not eligible for SSP because you are self-employed and you have COVID-19 or have been advised to stay at home, you can now more easily make a claim for Universal Credit or new style Employment and Support Allowance. If you are eligible for new style Employment and Support Allowance, it will now be payable from day 1 of sickness, rather than day 8, if you have COVID-19 or are advised t...

A client recently asked me “What made you get in to helping clients from the sex industry?”.

This is what I said: A few years ago, I wrote an article about accountants who don’t respect their clients and I questioned whether it was possible for those accountants to give a decent service with that attitude. It wasn’t aimed at a specific industry. Completely out of the blue a woman phoned me and told me her accountant didn’t respect her. The more we talked the more she explained her position. She worked in the adult entertainment industry and had used a local accountant for a number...

Are you struggling to pay your tax?

If you're struggling to pay your Self Assessment tax you may be able to set up a payment plan with HMRC to pay it over the next 12 months. The best thing about it is you don't have to speak to anyone at HMRC because you can apply online. To be eligible to set up an online payment plan you need to: owe £10,000 or lesshave no other tax debtshave no other HMRC payment plans set up...

The pain of dealing with HMRC

@bdsmmia, The Professional Dominatrix from Bristol, understands what it's like dealing with HMRC. Perhaps we chartered accountants should stop complaining and just enjoy the pain?...

Telling HMRC you are self employed

If you started being self employed during the tax year ended 5 April 2019 and have not told HMRC that you are self employed you must do so on or before 6 October 2019.The HMRC website tells you what you have to do but why not ask an accountant to do it on your behalf. It's a lot easier.We include this service as part of our fee because it's so important to start off on the right track with HMRC....

HMRC - as much use as a chocolate poker

Successive governments, Conservative, Labour and for a short term the LibDems (in coalition with the Conservatives), have over the last 30 years cut HMRC so much that it's no longer fit for purpose....

Ethics isn't a county north-east of London

Ethics is defined as "moral principles that govern a person's behaviour or the conducting of an activity". It isn't, as far too many people believe, a county north east of London....

No paperwork - what can I do?

Too many accountants give bad advice.I have come across so many that I now believe that they just can't be bothered to give the right advice because it means they have to do some work to help their client,The commonest example is that "unless you have a receipt you can't claim it as an expense". I've always said this is utter rubbish but up until recently have never been able to quote someone who agrees with me.Thank goodness for TaxCafeTheir article, Top Ten Forgotten or Missed Deductions, stat...

2019 tax return deadlines

It's a wet weekend so I thought I'd write something interesting about tax. Never an easy task at the best of times.If HMRC have told you that you must submit a 2019 tax return you have until 31 January 2020 to submit it online or 31 October 2019 if you complete a paper return.My countdown timer tells me that's 173 days for the online return but only 81 days for the paper one.And don't forget that if you submit a paper return after 31 October 2019 and then try to correct the mistake by submitting...

You can't have it both ways

I thought I had the perfect title when I started writing but on second thoughts I think it would have been better to use "You can't have your cake and eat it" - less chance of confusion! :-)...

HMRC approved mileage rates from 2011/12 onwards

If you're self employed HMRC will allow you to claim for the cost of business journeys in two ways: 1) A percentage of all your car expenses based on the proportion of business miles you do. You may also be able to claim for the cost of your car as well. 2) An approved mileage rate, which includes the cost of buying your car. If you operate as a limited company you can still claim on the mileage basis but if you choose the other basis because the car expenses are paid for by the company you will...

HMRC penalties

HMRC have , without a doubt, over the last few years been less and less concerned about making sure taxpayers have done the right thing at the right time because if the taxpayer didn't bother there were ample opportunities for HMRC to charge penalties. In my opinion most of the penalties bear little relation to the "offence". Fining someone £1300 for not submitting a tax return on time seems excessive when the tax liability could well be far less than the penalty itself. I'm seeing more and mor...

How do I work out my turnover as a webcammer to decide if and when I register for VAT

Not the most exciting title and not the most exciting content but very important to avoid problems with HMRC....

The Budget and the Adult Entertainment Industry

I was amused that The Times in their Budget Review this morning had a separate section titled Sin Taxes! The good news is that it wasn’t referring to the Adult Entertainment Industry but alcohol and tobacco duties instead which will be frozen on beer, cider and spirits. Duty on wines will rise in line with RPI inflation. The tobacco duty escalator will continue to rise at inflation plus 2%. However, the best part of today’s Budget for the adult entertainment industry must be the announcement...

Mortgage and landlord references

Lenders and landlords are expecting more and more information from us when asking for references. This has changed what was once a simple process into an administrative headache. Quite often we receive a request without the client’s authority to disclose the information. Obviously, in that situation, we contact the client before doing anything else! Agents also have a habit of asking for salary details instead of details of profit which means a phone call to explain the difference. Worse still...

Do I have to tell HMRC I'm self employed even if I don't have to pay tax?

In very simple terms, during the current tax year, which will end on 5 April 2019, everyone can have an income of up to £11,500 without paying any tax (but see the notes below). Don’t forget that income is the total of what you have been paid by clients less your business expenses. The fact that you’re not liable to tax doesn’t mean that you don’t have to tell HMRC you’re self employed until you become liable to pay tax. Once you start to be self employed (in other words start to be i...

This app makes bookkeeping fun

Nobody likes bookkeeping and in this day and age I think the only option is a phone app. Desktop and online software are fine for "office based businesses" but if you're a one person business using a mixture of cash and bank payments (including debit and credit card payments) I don't think you can beat 1taptax You don't even have to record the payment just take a photo of the receipt and the app does the rest. It doesn't matter how you paid it (cash, direct debit or one of your cards).  If ...

When do I have to tell HMRC I'm self employed?

It all depends when you started being self employed. If it was on or after 6 April 2017 but on or before 5 April 2018 you must notify HMRC that you're self employed by 5 October 2018. If it was on or after 6 April 2018 you have until 5 October 2019.Having said that, there's no harm in registering sooner rather than later....

Don't panic if HMRC send you a Notice to complete a tax return

Over the last few days HMRC have been sending letters to self employed taxpayers which look like this...

Happy St David's Day

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How to enter business mileage in 1tap tax

Work out the mileage claim using HMRC approved rates Open the app Tap on EXPENSES Tap on + Add Expense Tap on Manual input Enter details as shown below...