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Thread: Daily pay and tax.. UK Girls

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    Default Daily pay and tax.. UK Girls

    Hi Ladies

    Anyone know if we can use the daily pay fee as an expense when doing our self assesment?!

    As it is technically an expense?

    I know it's not essential.. but neither were my new hair straightners and they're on there!

    Thanks x

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    Default Re: Daily pay and tax.. UK Girls

    Yes of course, if you're in a studio that take a cut - you pay tax on YOUR cut . Otherwise we'd all be paying tax on 100% of monies earned before the camsites took their cut , and it wouldn't be worth logging on .

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    Default Re: Daily pay and tax.. UK Girls

    Yes, DP is an expense

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    Default Re: Daily pay and tax.. UK Girls

    How do i prove dp is an expense with no receipt? Im new to all this, sorry!

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    Default Re: Daily pay and tax.. UK Girls

    It won't even hit your accounts - how do you prove what the cam sites take for listing you is an expense without a recipet ---- you don't . You have your income- expenses = proffit ..... Your income is what you get AFTER DP and camsites take their cut ---- it's not like you get the money and then pay those things off -----

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    Default Re: Daily pay and tax.. UK Girls

    ^^^ actually it's legally debatable whether or not dailypay or any other 'post webcam host' charges can be automatically 'netted out'. From a legal standpoint, most authorities would say that whatever amount the webcam host pays out in your name is your official gross income. While dailypay and other banking fees are indeed deductible as legitimate business expenses, most authorities would say that they need to be separately accounted for and separately listed as a 'professional services' expense.

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    Default Re: Daily pay and tax.. UK Girls

    ^ we declare what is 'paid out' in our name .... and that is monies left after webcam/studio fees..... otherwise the line has to be drawn somewhere - and traced right back to the customers spend -which is verging on impossible - especially for the likes of imlive etc - which convert currency in a very strange way .... We must declare what we get , and what we pay out for expenses ...... Camsite fees don't fall into either of those brackets... at least not for us England dwellers .

    Edit - Sorry Melonie , I just realised I misread what you were getting at ..... however when we take DP through streamate the price shown on our streamate statements IS AFTER dp has taken their cut ..... it's not an added expense we pay after.... the site works it out for us , and shows us the total we take...So one would assume it's on exacty the same level as the camsite fees --- otherwise we'd be backtracking, and involving monies we've not even seen , let alone accounted for in books etc ... we'd be working backwards....

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    Default Re: Daily pay and tax.. UK Girls

    ^^^ agreed if SM pulls the fees along with their 'cut' ... with their statements reporting the 'net' as the actual payout to you !

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    Default Re: Daily pay and tax.. UK Girls

    Quote Originally Posted by Melonie View Post
    ^^^ actually it's legally debatable whether or not dailypay or any other 'post webcam host' charges can be automatically 'netted out'. From a legal standpoint, most authorities would say that whatever amount the webcam host pays out in your name is your official gross income. While dailypay and other banking fees are indeed deductible as legitimate business expenses, most authorities would say that they need to be separately accounted for and separately listed as a 'professional services' expense.
    This is absolutely spot on as your accountant should verify. It's like having to pay out house fees before you take your cash home EXACTLY the same.

    It's an expense that you paid out of your ill gotten gains whichever way you look at it!

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    Default Re: Daily pay and tax.. UK Girls

    We were advised ( by an accountant ) , that because the money is taken as part of the service before it comes to us - We do not need to declare it and claim it as an expense......

    What is paying out house fees? that sounds like it could be compared to the websites cut - which they take for housing you on the site ... and there's no way it would be possible to declare all those costs - as half of what the customer spends isn't even available information to us on many sites -Imlive etc ....

    I'm only talking for the UK though , I have no idea how the rest of the world do their business.

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    Default Re: Daily pay and tax.. UK Girls

    Quote Originally Posted by ukmissy View Post
    We were advised ( by an accountant ) , that because the money is taken as part of the service before it comes to us - We do not need to declare it and claim it as an expense......

    What is paying out house fees? that sounds like it could be compared to the websites cut - which they take for housing you on the site ... and there's no way it would be possible to declare all those costs - as half of what the customer spends isn't even available information to us on many sites -Imlive etc ....

    I'm only talking for the UK though , I have no idea how the rest of the world do their business.
    Accountants are one thing but when the HMRC concur you don't really have much of a choice! You can fuck with the police but you can't fuck with the Inland Revenue.

    Quote Originally Posted by Fridays View Post
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    Default Re: Daily pay and tax.. UK Girls

    Quote Originally Posted by kinkydirtybitch View Post
    Accountants are one thing but when the HMRC concur you don't really have much of a choice! You can fuck with the police but you can't fuck with the Inland Revenue.
    I don't agree the HMRC concur , it's straight forward information from them that you declare your income , not what other people have taken from it along the way - or like I keep asking , where do you draw the line . Melonie stated that she would draw the line on what the camsite log for paying you , that makes sense ... but like I said , Streamate take their DP cut before it gets logged to you... it is therfor none of your/our business what's been spent on us ---- Only what we take !


    I don't understand how this is 'fucking with the inland revenue' . Kinkydirty- Do you declare the % the webcam sites take from you , if so how do you do that on your returns ? Not having a go --- curious . Imlive charge the client by the pound if he's british , they then pay the camgirl by the dollar - they also vary their credit buy price , to their credit payout price !! ALL YOU are expected to pay income tax on , is YOUR income , that's why it's income tax---- If it's not come in , it's not your income , and it's not your worry ... It is not up to us to trace back to customer spends ------ The line has to be drawn somewhere... it is drawn at what you earn - The camsites % is a non issue - it just starts to make things hellish more complicated than they need to be . You must pay your accountant over the odds, because if s/he says they work this out for you - without working directly with the camsites, it wouldn't be possible .

    I suggest not fucking with the police nor the inland revenue An Accountant is paid to give you tax advice , there is no reason for them to want you to fuck with anyone. if you can't trust your accountant when it comes to financial matters, change accountant

    PS- what are house fees which you compared it to ? I'm interested because I can't think of another example similar to the missing camsite % I mean if an angency hires you as an independent contractor , you declare what THEY pay you , you do not declare what they take on your behalf - 50% of the time you wouldn't even know what that was and they are not obliged to share their accounts with you , it's not your problem ....ask the HMRC ! They will agree.
    Last edited by ukmissy; 06-23-2012 at 07:52 AM.

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    Default Re: Daily pay and tax.. UK Girls

    Simplified version:

    Gross profit = All money sent to you that lands into your bank account.

    Net profit = any money you have left after paying for anything business related. This is the number you pay tax on.





    Example:


    AW/DP pays you £10000 per year. This is your gross profit.

    You then subtract all business related expenses, eg costs of laptop,webcam and anything else that is applicable.

    This will give you your net profit £9000, you then pay tax on this figure and everything else is yours.



    The AW, DP, JCI fee, positioning fee, featuring fee's are not included in your gross profit. I dont think anyone in the history of AW has ever declared the JCI fee as an expense on their tax returns.

    If someone did do this they would be adding a substantial amount of work load on themselves to come out with the exact same answer if they didnt do it. HMRC only care that you pay the right amount of tax.

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    Default Re: Daily pay and tax.. UK Girls

    ^^^ if you want to get technical about it, the actual concern revolves around the amount of money that SM or other webcam host sites and/or studios will officially report as being your income, based on the 'bottom line' of their statements ( which may / will translate into official income reports to various gov't tax agencies ). If percentages kept by the webcam hosts / studios are 'above this line' then they don't need to be separately tracked and accounted for. If service charges to DailyPay and other bank fees are also 'above this line' then they also don't need to be separately tracked and accounted for.

    But anything 'below the line' MUST be separately accounted for and claimed as a business expense tax deduction on tax returns. For example, if your personal bank charges you a funds transfer fee that is not included in SM's statement amount, it has to be separately accounted for and eventually claimed as a business expense item on your tax return. You can't simply report a lower amount of business income based on your personal bank account deposit amounts, because from a financial / accounting standpoint the amount shown on your webcam host statements will be greater than the amount of your personal bank account deposits that you are attempting to report as your income and the gov't tax agency will definitely ask why your amount is lower than the 'official statement' amount !!!

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    Default Re: Daily pay and tax.. UK Girls

    Quote Originally Posted by ukmissy View Post
    I don't agree the HMRC concur , it's straight forward information from them that you declare your income , not what other people have taken from it along the way - or like I keep asking , where do you draw the line . Melonie stated that she would draw the line on what the camsite log for paying you , that makes sense ... but like I said , Streamate take their DP cut before it gets logged to you... it is therfor none of your/our business what's been spent on us ---- Only what we take !


    I don't understand how this is 'fucking with the inland revenue' . Kinkydirty- Do you declare the % the webcam sites take from you , if so how do you do that on your returns ? Not having a go --- curious . Imlive charge the client by the pound if he's british , they then pay the camgirl by the dollar - they also vary their credit buy price , to their credit payout price !! ALL YOU are expected to pay income tax on , is YOUR income , that's why it's income tax---- If it's not come in , it's not your income , and it's not your worry ... It is not up to us to trace back to customer spends ------ The line has to be drawn somewhere... it is drawn at what you earn - The camsites % is a non issue - it just starts to make things hellish more complicated than they need to be . You must pay your accountant over the odds, because if s/he says they work this out for you - without working directly with the camsites, it wouldn't be possible .

    I suggest not fucking with the police nor the inland revenue An Accountant is paid to give you tax advice , there is no reason for them to want you to fuck with anyone. if you can't trust your accountant when it comes to financial matters, change accountant

    PS- what are house fees which you compared it to ? I'm interested because I can't think of another example similar to the missing camsite % I mean if an angency hires you as an independent contractor , you declare what THEY pay you , you do not declare what they take on your behalf - 50% of the time you wouldn't even know what that was and they are not obliged to share their accounts with you , it's not your problem ....ask the HMRC ! They will agree.
    When I went through an investigation with the Inland Revenue when I was stripping it was all made very clear what they wanted which was how much I earned when I was at work stripping, how much house fee I paid and how much I took home. If I were paying a third party a fee for doing something I would have to declare that in place of the house fee.

    Quote Originally Posted by Fridays View Post
    What would you choose a cheap whore or an expensive whore
    Dirty is my Middle Name






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    Default Re: Daily pay and tax.. UK Girls

    Quote Originally Posted by Melonie View Post
    ^^^ if you want to get technical about it,
    No, I like things in simple terms.


    Quote Originally Posted by Melonie View Post
    the gov't tax agency will definitely ask why your amount is lower than the 'official statement' amount !!!
    I went through a full audit recently with hmrc who brought in the fsa and none of what you assume to be brought up was. Audit lasted 2 months.

    Bottom line is if your paying the correct tax they simply dont care.

    SM's/AW's records show what they pay us, not the performer so your argument is invalid. We then report what we pay the performer.

    The official statement amount is what we say, not sm/aw.



    Also no need to shout.
    Last edited by PrincessJenny; 06-24-2012 at 05:51 AM. Reason: shortened the post

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    Default Re: Daily pay and tax.. UK Girls

    Quote Originally Posted by kinkydirtybitch View Post
    When I went through an investigation with the Inland Revenue when I was stripping it was all made very clear what they wanted which was how much I earned when I was at work stripping, how much house fee I paid and how much I took home. If I were paying a third party a fee for doing something I would have to declare that in place of the house fee.
    ^ That's entirely different ! For a start it's cash . Secondly it's money you've taken , you know what the 100% figure is . On cam pretty much the only figure which is worth while is the amount YOU earned , not the amount the camsites have taken along the way ---- how would you find this information ?! It differs from camsite to camsite , and they're not obliged to share this information with you . It's not something you're expected to find out in order to declare and then claim back ! It's a ridiculous concept . I'm torn at Melonie's point - and I'm siding towards agreeing that what is shown on the final statement from the camsites, is what will come up if you're investigated ..... my point is, streamates reports INCLUDE the DP fee already gone ! How would you plan to declare that , add 6% on and then take it back off ?! I sure hope you don't work on imlive, because what they charge your customer and what you get , differs from customer to customer depending on the currency they use to buy the tokens, that your tax calculations would be impossible to work out . Imlive also refuse to share that information , and you can't ask most clients, although a select few will confirm it to be the case ! The best thing you can do is declare the % that you're paid . Nothing more - it would be crazy to start trying to add on their possible expenses in order to knock them off.... You're a contractor - declare what YOU are paid , NOT what the customer spent on you via another company ..... If you danced in a club where they paid you a set amount for a whole shift , this is what you would pay tax on ----- not the amount they might have charged and taken from the customer - this wouldn't even necessarily be your right to know ..... Anyway , this is going round in circles, I guess we'll have to agree to disagree.......

    Melonie - I do agree with you , but like I said ,streamates earning page shows us what we've earned AFTER direct cam fees- it's therefor pretty much a non issue, and would get swept in with all the other fees that are taken along the way and which would be close to impossible to account for . It's not the same as paying a bank fee etc - thats money that has already come in - and then gone back out, what happens to the coin before we get it , as far as I'm concerned is none of my business. If I was worrying about that , I'd have much bigger worries about my dirty drug , organised crime and terror filled money which lands in my pocket ! I'll start counting it as mine only once it becomes MINE , and not one second before.

    I'll not keep baiting this thread, because I'm going to cause a pendulum of opinion - but good luck with your returns everyone , and Kinky , if you've been investigated in the past , I can understand your need to be extra vigilant - I know I lose sleep over such times , I'm not sure my heart would stand it and while I don't think there's any need to create extra work for yourself - there's no such things as too careful.

    Missy

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