Are You Paying Your Taxes?
The clock is ticking for submitting your tax return (in the UK) and I’ve just completed my return online for money I made selling my used panties.
You know what? It feels really good to declare the income. I know a lot of sellers have no intention of declaring their panty-selling or sex worker income and paying taxes. Personally, I don’t recommend this course of action.
Not because I think you’re going to get caught – although, I guess anything is possible!
But because it feels good to treat this income as a business. Spoiler: it is.
You know I’m always banging on about treating your panty selling as a real business and guess what? Paying taxes is what a real business does!
So you need to treat it as such and submit your return.
As I began selling my panties online on 26th December 2018, my return for this year was for income received from that date until 5th April (just over three months).
My income during this time was just shy of £4000 ($5,240).
In April last year, HMRC introduced a new allowance to cover “self-starters” with small, hobby-based businesses. The allowance means that the first £1,000 you earn (gross, before expenses) is tax free. You don’t have to pay anything on this income or even report it.
If you earn more than the tax free allowance, you will need to register for Self Assessment and pay tax on any profits. You’ve got two choices from then on:
- You can either deduct the £1,000 from your gross income and pay tax on the remaining
- Or you can deduct allowable expenses from your gross income, like businesses usually do
I decided to deduct the £1,000 from the income and pay tax on what was left – although, it was such a small amount I won’t have to pay taxes this year. I will have to next year as my income will hit the £12,500 income level.
The reason I chose the first option is because I haven’t been keeping track of expenses and it was easier to just go down that route.
If you’re still on the fence about whether you’re going to declare your income – yes, Amazon gift cards still count as income – then consider this.
Would you rather have this business as something hidden, not really something you’re all that serious about and just pissing in the wind about?
Would you rather take this seriously, give off the professional vibe and send a big fat message to the Universe and all who’ll listen that this is a LEGITIMATE BUSINESS, that you’re in it for the long-term and that you’re going to be making some serious income?
I know which I’d prefer.
Honestly, after submitting my return I really felt that something shifted in my mind about what I do and how I do it.
I feel like more of the real deal. Does that make sense?
So if you’ve yet to fill in your return, you’ve got another 6 days to get organised (UK).
Get to it!
If you’re a sex worker, you need to be paying taxes on your income… because why?
Sex work is work. Sex work is real work.