Working on a Cam Site

[missc]

Hello. I am looking for some advice please. I will be starting work as a webcam performer soon. I want to register as self employed immediately and be totally legal and pay tax.
My first question is do i need to go into detail about what I do? I will be working on an adult orientated chat camming website from home, just using my laptop in my bedroom. Do i register as a business? I will be getting paid 2 weekly from the camsite according to the number of tokens I earn. What records will i need to keep? Do I register for VAT? Any replies would be much appreciated, I'm a little confused. Many Thanks in advance. J

[Lambs]

M,

This is potentially a difficult area. Not by reason of the nature of the work itself but simply because I can see potential arguments both for and against your being either employed - where your employer will pay you a wage net of tax and National Insurance - or self-employed such that accounting for tax and NI will be your responsibility.

I think it likely that you will be self-employed but I think it's important that you check that position with whatever agency, etc., is providing you with the facility to work. (I see from your post that you are approaching this on the basis that you are self-employed. Perhaps you have already been advised on this issue). Which is not to say that they will necessarily be right but if all performers are treated in the same way, then that's a persuasive argument.

Assuming you're self-employed, then you will need to register as such with HMRC - ie as a self-employed business. Please see http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm for further details.

Please note that, depending on your anticipated level of profits, you may need also to pay the "stamp" of Class 2 NICs. But if you don't expect to be earning above £5,315 for the current tax year, then you should say so to avoid your having to pay it unnecessarily.

As to keeping records, your business affairs will probably be more easily managed if you are able to open/maintain a separate bank account for your business. If this isn't practical then you must be able to identify all business income and expenditure without difficulty. I suspect that income may not be difficult to monitor - presumably by electronic payment to the account of your choice. Expenses may be more difficult, as you will need to keep receipts and be able to explain why it is a legitimate business expense. The obvious items are laptop, camera and the cost your Internet connection. But it isn't as simple as that, since your laptop at least will be a Fixed Asset rather than a revenue deduction and there may be private use of all of these items. (You must not claim for personal / private use, so if you use your laptop for non-business matters 1/4 of the time, then don't claim for 1/4 of its cost).

Hopefully, you will find the following link to be of some use:

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073859158

Finally, discretion. You are required to tell HMRC what it is that you do. But I don't think that the description need be particularly detailed. Without thinking about it too much, would something like "performance artist(e)" be accurate, do you think? As regards HMRC itself, all employees are obliged in law to maintain taxpayer confidentiality.

Good luck in your new venture.

Regards,

Lambs

[Lambs]

ps, the VAT registration threshold his £73,000 at the moment - you'd have to have received income (albeit from all sources as a self-employed invididual so please do bear this in mind if you have more than one SELF-EMPLOYED job) in excess of £73,000 in the previous 12 months, in order to be required to register. I cannot say whether registering voluntarily now would be to your advantage but I suspect it wouldn't be worth the hassle.

Regards,

Lambs

[missc]

Hey Lambs,
just like to say a big thankyou for your detailed reply. You have given me lots to think about, I will definately be visiting the HMRC website soon to register self employed!
Cheers
J.