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Author Topic: How many escorts are Vat registered?  (Read 1887 times)

Offline Dani

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Dani --------------- you normally talk a lot of sense but this is cobblers, you know as well as me that the vast majority of prostitutes are not even registered with HMRC let alone employ an accountant.    :rolleyes:

I quite agree I doubt those who are just on AW don't bother but those with a website and domain name they bought are bloody stupid if they don't as it is very easy for the Tax man to find out who owns the site as it is registered to your credit card.  It takes one bitchy prossie to give them a call and you are stuffed for the next few years as he likes to be all in your business for a long time after being caught out.  When he does catch you he works out your earnings on a 39 hour week.  Not many prossies do 39 hours of actual work a week as they would be knackered but that is what he works it out as and you have to pay the tax on that.  He also allows for two weeks holiday and no sick days unless you have proof off of the doctor.  Lets just say that is a tax bill no one wants as it takes a while to pay off.  He will also take it from the time you registered your domain name not just the past year.

Offline Diehard

I quite agree I doubt those who are just on AW don't bother but those with a website and domain name they bought are bloody stupid if they don't as it is very easy for the Tax man to find out who owns the site as it is registered to your credit card.  It takes one bitchy prossie to give them a call and you are stuffed for the next few years as he likes to be all in your business for a long time after being caught out.  When he does catch you he works out your earnings on a 39 hour week.  Not many prossies do 39 hours of actual work a week as they would be knackered but that is what he works it out as and you have to pay the tax on that.  He also allows for two weeks holiday and no sick days unless you have proof off of the doctor.  Lets just say that is a tax bill no one wants as it takes a while to pay off.  He will also take it from the time you registered your domain name not just the past year.

That has to be bollocks. The taxman can only deduct tax on actual earnings, not suspected earnings! They will impose a hefty fine obviously and most likely commence criminal proceedings which could lead to POCA .

The IR can easily track any escort by getting their IP address off aw. All escorts on there are easily identifiable by the authorities. The same with punters as well so if ever the law changes to make seeking paid for sex online the same as kerb crawling, there is going to be thousands of worried people! The ever widening snooping charter makes the above not as far fetched as it may seem

Do they need to pay VAT as they're not manufacturing anything - they're a service industry

Offline potato

That has to be bollocks. The taxman can only deduct tax on actual earnings, not suspected earnings! They will impose a hefty fine obviously and most likely commence criminal proceedings which could lead to POCA .

The IR can easily track any escort by getting their IP address off aw. All escorts on there are easily identifiable by the authorities. The same with punters as well so if ever the law changes to make seeking paid for sex online the same as kerb crawling, there is going to be thousands of worried people! The ever widening snooping charter makes the above not as far fetched as it may seem

Q How does HMRC decide what you owe?
A Where there is clear evidence, it is worked out as normal. However, in many complex cases, which can date back years, HMRC can "estimate" for itself what was not disclosed.
It also operates a presumption of continuity, by which it may decide that, if you failed to disclose income in a given year, you omitted to disclose it for a run of years

The Tax Man also looks at similar business models to see if there is anything "strange" about your returns. If you declare your income is say £30k where similar businesses declare £70k then that flags up and starts an enquiry.....

Stuffing undeclared cash into investments which you get interest on also causes queries to arise - like where did the capital come from to get the interest...

Slightly off topic, but I once met one who claimed to be an accountant - so she should have known all about VAT - even though she was Polish!

I think of her as the one that got away, as I've belatedly realised she was probably, in my eyes, the most attractive WG I shagged via AW. Unfortunately she was one of those providers who appeared only briefly and then disappeared as quickly as summer snow.

Do they need to pay VAT as they're not manufacturing anything - they're a service industry

It does not matter what your business is, if your turnover is exceeds £82,000 over the previous 12 month period, vat registration is compulsory.

Can't really understand a punters interest in prossies being vat registered. It simply means we would pay more at the bedside. Who the fuck wants that?  :dash:

http://www.telegraph.co.uk/news/uknews/1546450/Strippers-are-exposed-to-the-taxman.html

By Joshua Rozenberg, Legal Editor12:01AM GMT 23 Mar 2007
Taking a close look at lap dancers persuaded a High Court judge today that “gentlemen’s clubs” such as Spearmint Rhino are not required to pay VAT on their dancers’ services.

Since the “partially clad women” who work at lap dancing clubs are unlikely to pay tax on the value they add to their customers’ lives the ruling may leave the Revenue and Customs commissioners in need of some entertainment themselves.
Allowing an appeal by Spearmint Rhino against a ruling that the club itself had to pay VAT on the fees received by dancers, Mr Justice Mann said the case had the by-product of enabling the judiciary to fill in some of the gaps in its knowledge “demonstrated, but teasingly left,” by a judgment from 2005.
In that case — a dispute between a businessman and a lap dancer — Lord Justice Wall maintained that he would not, “of course”, begin to know exactly what the dancer’s job involved.
“One can guess at it, but could not faithfully describe it,” the judge said.
He relied on an earlier ruling by Judge Harris, who said the purpose of a lap dancer was “to tease but not to satisfy”.
Today, Mr Justice Mann lifted the veil on the Spearmint Rhino club in Tottenham Court Road, central London — a “typical example”, he said.
“A member of the public pays £8 for admission and on entering goes into an area in which he — or she — may drink, socialise, eat and watch partially-clad women dancing on a podium,” the judge observed.
Of greater interest to the judge, however, were activities “provided as a result of more direct engagement between the women and the customer”.
These were “private dances”, lasting about three minutes, and charged at £20 for a nude dance or £10 for semi-nude.
“In addition to those services, the dancer and the customer can agree what is called a "sit-down".
For £250, a sum which is in fact negotiable, a woman can be engaged to sit and socialise with the customer for an hour.
All the dancers were self-employed, the judge noted. They paid a fee of £15 to the club for a daytime session and £80 for an evening session, plus £40 for a sit-down.
In exchange, the club provided the premises, a “house mother” who helped to advise and look after them and security staff who would “apparently assist in the persuasion of a customer who might otherwise be minded not to pay”.
Each dancer agreed not to “handle customers” or to let a customer “handle” her. Customers had to be seated in a particular way and dancers could touch customers only “above the customer’s chest”. HM Revenue and Customs had persuaded a lower tribunal that the dancers’ services were supplied by Spearmint Rhino through dancers engaged by the club.
It followed that the club was required to charge VAT on their services.
But Mr Justice Mann decided that the dancers were operating their own businesses rather than acting as agents for the club.
“The evidence clearly demonstrates that the dancer chooses her own customers,” the judge said. “While she is expected to carry out sufficient performances to further the objects of the club, she is nevertheless, within that constraint, free to decide how many customers she dances for.
“She decides whether or not she has a sit-down with a customer, and can negotiate a fee which departs from the standard fee. She keeps that fee.
The fact that she is obliged to pay £40 to the club does not mean that she negotiates the sit-down on behalf of the club. She negotiates it on behalf of herself.”
It followed that Spearmint Rhino “does not make a supply of services for VAT purposes”.
Revenue and Customs said it would consider the ruling carefully “before deciding on what further action to take, including whether to appeal”.
A spokesman confirmed that dancers would not have to charge VAT unless they were earning more than £64,000 a year but could not say how much money Revenue and Customs would lose as a result of the ruling.

Offline Eiltedongster

I wonder how many pay the correct amount of tax
Banning reason: Abusive troll + Multiple accounts (Eiltedongster, maistro)


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