In the hope of keeping this site relevant to the needs of its readers I keep a close eye on the search terms that have brought people here. Some I ignore. I hope everyone searching for answers to “are wellington boots allowable for tax for farmers?” and “are damages for whiplash injury taxable?” found their visits here enjoyable but I doubt we were much help.
So I was delighted to see that today’s burning question is much more in tune with what the site is about, even though I don’t have much idea of the answer: is it legal to sell used panties?
The law seems to vary around the world so if you want to know what’s legal and what’s not it is probably worth having a good look round The Panty Trust site. A couple of important points I picked up are that you cannot use e-bay or Paypal for a panty selling business because it breaches their rules. And if you’re exporting you cannot use the US Postal Service (it breaches their hygiene rules), while according to this story it is illegal to export used panties to Ghana, or indeed used mattresses.
The tax angle is much more straightforward. Income tax is due on the profit, which is simply the sale proceeds from which you can take off the cost of the panties you have sold together with the business expenses such as advertising, postage & packing etc. If you already have an escorting business you can combine the two in your accounts and Tax Returns. In theory you could run the panty business through a limited company, but unless you are selling lingerie on an industrial scale it is unlikely to make tax sense.
And if you are VAT registered you need to add 20% VAT for sales to people in the UK, and to non-business customers elsewhere in the EU. You can also reclaim the VAT you get charged on the stock you purchase. But as it is hard to conceive that your customers could be buying from you in the course of their business, you should avoid VAT registration if you can.