The first and most important thing to remember is that you can and must claim your expenses as an escort not the type of business you used when you registered with HMRC. In very simple terms, HMRC are only concerned about you paying the correct amount of tax.
If you're new to business you will probably have paid for certain business items before you started trading (e.g. equipment, “work” clothing, make-up). Any items that you owned privately which you will now use in your business (e.g. laptop, “work” clothes) can also be treated as expenses but only at their market value on the day you started. If you incurred any expenses within seven years of you starting to trade you can include them as if they had been paid on the day you started – examples could be legal advice about your business, postage and stationery, phone calls etc.
You can also claim for the items you need while working ranging from condoms to “work” clothes including toys, oils, etc.
Other expenses you can claim are:
- Hotels and apartments used for work (if you work from home see below)
- Make-up and beauty treatments etc. if you can justify that you need them because you’re an escort and you wouldn’t use them otherwise. (to HMRC if necessary).
- Commission e.g. AdultWork fees
- Computer equipment
- Mobile phone
- Landline
- Broadband
- Computer equipment
- Computer software
- Stationery and postage
- Accountancy fees
- Business travel (including any business mileage)
- If you work from home you should also be able to claim a proportion of your house costs so make sure you keep a record of your rent, council tax, electricity, gas, water, and insurance. If you own your house you should be able to claim a proportion of any mortgage interest you pay but be careful you don't allow HMRC to treat part of the house as a business asset - you may have to pay capital gains tax when you sell it.
Finally, it's worth remembering that if you've paid for something because you're in business there's a good chance that some or all of it will qualify for tax relief. The important thing is to record it no matter how unlikely you think it is. Let your accountant decide.