Comments on: What if I am a student?

By: Jolyon

Jolyon — Fri, 27 Apr 2012 08:23:43 +0000

That’s right, your tax position is not affected in any way by how to choose to spend your income. So using it fund further study, to pay for travelling round the world, or just help you meet day to day living costs, all have no effect on your tax.

In technical jargon the only things you can deduct from your escorting income are expenses which are “wholly and exclusively incurred” for your escorting business. Paying for another degree course does not satisfy either of those conditions.

I hope that helps.

By: Jolyon

Jolyon — Fri, 27 Apr 2012 08:11:46 +0000

If you are liable to pay tax or NI you have until 5 October following the end of the tax year to notify HMRC and get registered. There used to be a time limit of 3 months after starting in which to register, but that has now been scrapped. I think that means you have plenty of time to decide whether you need to register. Some part-time escorts will realise fairly early on in their escorting career that this is going to be a substantial source of income, in which case registering early on and getting organised is sensible. Similarly others may realise quickly that profits are going to be very modest and registration is unlikely to be necessary. If you don’t fall into either of those categories you can safely wait and see. Equally you could register early, claim exception from Class 2 NI because your earnings are expected to be low, and complete the Tax Return HMRC will send you after the end of the tax year. If it turns out you have no tax to pay there is no harm done, other than the extra hassle of completing and submitting an unecessary Tax Return.

Once you are registered you don’t have to notify HMRC each year; they will automatically send you a Tax Return.

By: Concerned

Concerned — Thu, 26 Apr 2012 20:01:08 +0000

Is it unimportant if I want to use all the income to pay for another degree?

By: Concerned

Concerned — Thu, 26 Apr 2012 19:56:02 +0000

Thank you so much!

Very useful post,

although I struggle to see how to estimate my income profit, if my income stream (escorting) is so unreliable? Just use an average figure?