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Allowable expenses
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Business expenses that
you're allowed to take away from your income before your income tax
is worked out.
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Customs & Excise
|
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The arm of HMRC which
deals with VAT as well as custom duties
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HM Revenue &
Customs
|
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aka the taxman. Formed
in 2005 from the amalgamation of HM Customs & Excise with the
Inland Revenue.
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Income tax
|
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The main tax on
income. The more you earn the more you pay.
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Inland Revenue
|
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The arm of HMRC which
deals with Income Tax, NIC and Tax Returns.
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IR35
|
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An Inland Revenue
Press Release about stopping people who are really employed from
setting up limited companies so as to get the tax advantages of
self- employment. The computer industry is obsessed with IR35. But
it is of no relevance whatsoever to independent
escorts.
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National Insurance
(NIC)
|
|
Really a form of
income tax though the government likes to pretend it's an insurance
you pay in return for getting various state benefits and use of the
NHS
|
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Overlap relief
|
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If you do your
business accounts each year to a date other than 31 March (strictly
5 April) then some of your income will get taxed twice in the first
2 years of your business. But when the business ends the overlap
period will be taken off your final year's
profits.
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Tax avoidance
|
|
This is legal -
arranging your affairs so you pay less tax
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Tax evasion
|
|
And this is not legal
- usually involves lying or cheating
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Turnover
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The total money you
receive from your clients.
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VAT
|
|
Value Added Tax - a
nasty European inspired tax
|
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VAT Input tax
|
|
The VAT you pay on the
goods and services you buy into your business. If you buy
£117.50 of massage oils then £17.50 of it is VAT input
tax which you could get back if you were VAT registered and the
oils were all for business use.
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VAT Output tax
|
|
If you're VAT
registered this is the VAT you charge on services you supply out to
your clients. The client pays you the tax which you effectively
collect on behalf of the government. NB Nothing to do with incall
and outcall!
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1. Do-it-Yourself
