inland revenue

[dvtimes]

Hi

Just been to the Inland Revenue to day for a chat.

Was it Trixi who posted a bit back about the photographer not giving a recipt, then people started to post all sorts of rubish.

Well basicly if you do not get a recipt from him, you cannot minus him from your profit.

Say your site earns £19,000 but you pay him £14,000 but do not have proof, your profit will be £19,000 which means taxed on that. If you have proof then your profit is £5,000.

But if you are paying him regular work, you become an employee and have to sort out all the tax and stuff for an employee.

All so if you hire a model reguly she is an employee and not self employed.

Of course I do not expect so called expets to say I am wrong, but I think i its all the same I will take advise direct from the inland revenue.

I had to prove the models I book are self employed as they work full time models, and in most cases the pay is not above £90. If its above £90 then you need all the paperwork done.

My advise is to consult the inland revenue abote your own position. I was pleased as they in fact have saved me a huge abount of cash in tax.

But at least I know I am operating legaly now.

For those running websites and book models, its worth descussing with the inland revenue if they are your staff or if you can book them as self employed.

Of course its up to you.

[mellenig]

Don't you have an accountant? if not get one he/she will save you more each year than he/she costs you.

[gawdi]

Hit me up and I'll give u sandy dear's contact details.. shes an accountant who specialises in the adult business

[Guest]

Was it Trixi who posted a bit back about the photographer not giving a recipt, then people started to post all sorts of rubish.

Well basicly if you do not get a recipt from him, you cannot minus him from your profit.
Tax calculations have to be based on accurate financial statements. Omitting something from your accounts because you don't have a receipt would lead to innacurate financial statements.

The technically correct approach would be to include the expenditure in your accounts, then disallow the expenditure in the tax calculations themselves.

However, 99% of accountants will take their client's word that the expenditure is genuine, even if it isn't evidenced by a receipt, and allow it in their tax calculations because it's in their client's benefit to do so and there's only a small chance HMCR will ever challenge it.

[JP]

Hi

Just been to the Inland Revenue to day for a chat.

etc etc etch blah
Fuck me, for some reason I always assumed you was on the dole and not paying tax. Assumed you did what you do in order to perv over naked ladies bare boobies rather than to make a living from it ..... oops.

[Paul Markham]

That's all correct or was when I lived in the UK. The deviding line is very much whether the person you're paying as a self employed person is working for other people. If you're the sole employer then you could very well be liable. Our model release actually statwed the model was self employed and WAS LIABLE FOR ANY TAXES.

But the tax mans job is to collect money and he will use any excuse or means within the law.

As for putting down an expense without a reciept, then you're in deep water and will probably be liable for the tax. So you pay the tax of the guy who wants cash.

Of course aiding and abetting someone to avoid paying tax is a crime. As was explained to me when it was discovered a lot of Page Three models were still on the dole and collecting allowances. Big story in the News of the World back in the early 90s.

[JT]

Hit me up and I'll give u sandy dear's contact details.. shes an accountant who specialises in the adult business


Sandy rocks, shes also my accountant. The main advantage is you can knock one off over her pictures after shes gone.


By the way, having an accountant, isnt the be all and end all, they often get things wrong, as do the VAT people and the Tax people. Ive had a few run ins with them all and sometimes it helps to know what you are talking about.

I once had a VAT inspector almost shouting at me when I claimed the VAT back of an Audi Quatro I bought. Saying I couldnt claim it back against the VAT as it was a non commercial vehicle.

I then pulled out a leaflet from the VAT peeps that explained, that if the vehicle is a A) a pool car and b) doesnt leave the business premises over night, then the VAT could be claimed back. He actually apologised to me :)

Yes we all need a good accountant who knows our business, but you should never under estimate having a bit of knowledge ourselves and keeping ourselves informed. Trust me the VAT man, The Tax man and accountants get it wrong!