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How do I pay my self assessment tax?

The easiest way to pay your self assessment tax bill is by transferring the money online from your bank using Faster Payments. If you have a bill it will tell you which account to use. If you don’t have a bill, or you’re not sure, use HMRC Cumbernauld. Most banks have an option to choose Cumbernauld or Shipley. If not, the account details are shown below. You’ll need to use your 11-character payment reference when you pay. This is your 10-digit UTR (Unique Tax Reference) followed by the le...

If you think it's expensive to hire a professional to do the job, wait until you hire an amateur - Red Adair

It's my birthday today (New Year's Day) and the older I am the more I realise that what I think is common knowledge is far from it. Red Adair was an oil-well troubleshooter He was paid a great deal of money to extinguish oil-well fires. He charged oil companies a great deal of money to do this but the oil companies paid it because he delivered the goods. I've always liked his quote (it was on the front page of my website for years): If you think it's expensive to hire a professional to do the jo...

I feel like Father Christmas.

I feel like Father Christmas because a client has just said "We can't stop smiling how much of a difference you have helped me with my taxes. Best Christmas present I could ask for. Thank you so much. :-)" 0 replies 0 retweets 1 like...

If you're a Scottish taxpayer you may well have to pay more tax than the rest of us in the UK

When I started to write this post I may have been a little premature with the heading. At that time the BBC website was looking at an increased tax rate of 21% for those earning more than £24,000 a year. In actual fact it isn't quite as simple as that. The Scottish government has announced income tax changes that will see higher earners pay more than elsewhere in the UK - and lower earners pay less. The government has said that no one earning less than £33,000 in Scotland will pay more tax the...

Will 2018 be the year you buy your own property?

The Chancellor's announcement in this week's Budget that first time buyers will not pay any Stamp Duty Land Tax on properties costing less than £300,000 (in London the price limit is £500,000 but it's only the first £300,000 which will be free of Stamp Duty) may be the incentive you need to reach out for your own property. We work very closely with a firm of mortgage advisors who understand the uniqueness of the adult entertainment industry and who are often able to place mortgages on the bas...

How the Budget will affect you if you're in the adult entertainment industry

For most us my answer is "not a lot". "A Budget for the United Kingdom (hopefully) rather than for the individual" would be my summary of today's Budget. Admittedly, if you're a first time buyer you'll benefit from the abolition of Stamp Duty Land Tax on properties costing less than £300,000, in London the price limit is £500,000 but it's only the first £300,000 which will be free of Stamp Duty but for the rest of us there isn't much. Duty (tax) isn't being increased on beer, wine, and spirit...

Tax return deadlines - paper and online

Yesterday (October 31) was the deadline for submitting your paper tax return for the year ended 5 April 2017. Don't panic if you've missed the deadline, you have until 31 January 2018 to submit the return online - by the way you only have 92 days left to complete it at today's date. Click here if you're reading this at a later date to see how many days are remaining. Finally, don't whatever you do submit a paper return now. HMRC won't reject it they'll fine you £100 because it's late. Welcome...

Accountancy is more than adding up figures and filling in a tax return (or it should be)

If you think your accountant is only any good at adding up and filling in your tax return you've either underestimated your accountant or you may have the wrong accountant (See the P.S. at the the end of this post)....

HMRC just don't play fair

Anyone who knows me well knows that I cannot stand unfairness. I will always stand up for the underdog in business or in my private life. Coupled with my professional desire to make sure my clients pay the correct amount of tax without entering into contrived tax avoidance schemes, you can imagine my reaction when I discovered HMRC had charged a (new) client £1,300 in penalties for submitting a late tax return. Her tax liability for the year was just over £130. in other words, the penalty was ...

How to keep on the right side of HMRC

Don't think HMRC are stupid. They have long memories and are being given more and more resources to track down individuals and companies who aren't complying with the law. If you've moved home or you have a new business address make sure you tell HMRC of your new address. You may think you've shaken them off but the penalties are still mounting up in the background. Keep proper records. Technology is making this so much simpler than a few years ago. If HMRC write to you don't ignore it. Reply as...

I can't pay my tax! What should I do?

Don't bury your head in the sand. HMRC won't forget you or the money you owe them. Having said that, do make sure that the money they're asking you to pay is correct. HMRC aren't perfect! If the debt includes penalties, can you appeal against them? If you do owe the money you should contact HMRC as soon as possible. The sooner you do it, the more sympathetic and helpful they'll be....

Texts and e-mails from HMRC - can I trust them?

The image may be a bit of a giveaway!In the last 24 hours, two of my clients have received very credible texts from HMRC (apparently) telling them they are entitled to large tax rebates (>£1,800) and inviting them to click on a link.Don't be conned by these crooks.HM Revenue and Customs (HMRC) will never use texts or emails to: tell you about a tax rebate or penaltyask for personal or payment information...

Which expenses can I claim when I'm webcamming?

Too many webcammers pay too much tax because they don't claim all the expenses they should. Read my latest web post to check. ...

What you need to know about HMRC if you're in the adult entertainment industry

Don't treat HMRC as fools. They're not. HMRC have huge resources and they are starting to learn how to use the internet to their advantage. They have spent £100m or more on a super-computer designed to identify those who may have paid too little (or no) tax. They have set up an "adult entertainment" taskforce specifically to target the adult entertainment industry. If you're self employed you have to notify HMRC. There is no de minimis amount below which you don't have to register. If you...

Claim what you're entitled to not what you think HMRC will approve

In very simple terms, HMRC are only concerned about you paying the correct amount of tax. Provided you are declaring all your income and claiming all (tax) allowable expenses HMRC won't be bothered how you describe your business. The question will not arise anyway until you're selected for a tax inquiry, which may never happen. Then, and only then, would you have to tell HMRC that your business description doesn't "fully describe" what you do. HMRC have to treat this as confidential anyway. Te...

Blowing my own trumpet

Most accountants (me included) are very bad at blowing their own trumpet, unlike some members of the adult entertainment industry :-) but just once in a while even accountants get the urge. Yesterday Annabel Fatale added this to her blog. Thank you Annabel and I haven't even started on minimising your tax liabilities yet. ...

Don't be tricked by the government's U-turn on national insurance

This week's U-turn by the government over increasing national insurance contributions for the self employed is good news for all those who are self employed in the adult entertainment industry. Don't forget that if you're an escort you must be self employed to avoid problems with HMRC and Companies House. It has, however, left a £2bn hole in the government's finances which will have to be filled before the start of the next tax year (April 2018). Most tax experts expect the government to anno...

Can I get a mortgage if I'm an escort?

This is yet another question I'm frequently asked. I do realise that most escorts don't describe themselves as escorts for this very reason. So I thought I would ask the firm of mortgage brokers we recommend and use "If an escort described herself as an escort in a mortgage application would it count against her?"...

How to stop AdultWork adding VAT to their fees

AdultWork will automatically add 20% VAT to the fee they charge you unless you prove you're a UK business. To do this you'll have to complete VAT Details page which you can find on the AdultWork website at My Details/Credits/Transfer Request Form. Where it says " Note: Are you using AdultWork.com as a business or sole trader?" click on "more info." In the first box, where it says " To find out if you meet the requirements and to supply the relevant documents" click on "click here". ...

Intimate waxing, tax relief and HMRC

About a year ago HMRC announced that number three of their top five most outrageous tax return expense claims is "the cost of my intimate waxing". I have to disagree. It can often be an allowable expense qualifying for full tax relief. I regularly submit claims for workers in the adult entertainment industry and have even managed to claim for the cost of a female impersonator having his chest waxed on a monthly basis. I'm quite sure HMRC are trying make the Self Assessment season more lig...

How much should I save for my tax?

After you've been self employed for just over a year you'll start to pay your tax and national insurance every six months based on your previous year's income. And this is where it starts to become difficult because how do you know, until you reach that stage, how much you have to save towards your tax liability. Fortunately, there is an excellent tax calculator on the TaxRelief4escorts website which will give you a good idea of how much to set aside. It assumes your only taxable income i...

Don't delay starting work on your 2016 tax return - you may have less time than you think!

Tuesday, January 31 2017 is the deadline for submitting your 2016 tax return (the one which covers the year ended 5 April 2016). It's now less than six weeks away. Don't forget that you can't submit a return without a UTR (Unique Tax Reference). HMRC will have issued you with a UTR when you registered as self employed. If you haven't registered yet you must do so as soon as possible as it's taking HMRC up to four weeks to issue UTRs, which doesn't leave you long to submit your tax return. I...

HMRC is watching you

HMRC have, for the last two to three years, been using a system called 'Connect' to identify tax evaders. Connect accesses information from nearly 30 different sources, including the internet obviously, and then allows HMRC to search on individuals, specific addresses and specific telephone numbers allowing them to see links between individuals and companies, individuals and addresses,etc. It is very sophisticated and it is improving all the time. Rather than choosing tax inquiries at random ...

HMRC - don't leave it too late

If you were self employed at any time during the period 6 April 2015 to 5 April 2016 you will have to submit a 2016 tax return to HMRC. The deadline for filing this return is 31 January 2017 which may seem a long time away but you must remember two things: You have to submit the return online. You mustn't submit a paper return otherwise you'll face a £100 penalty. It takes time for HMRC to put you in a position where you can submit the return online. The first step, if you haven't alread...

Something for the weekend

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