How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3114
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am a live webcam performer (camgirl, camwhore, etc.) This

Customer Question

I am a live webcam performer (camgirl, camwhore, etc.)This year I will be earning over the VAT threshold. However the site I mainly work on has this statement in their performer agreement:"We will not pay or make any payments on behalf of or for the benefit of Performer/Studio related to Social Security, Medicare, FICA, VAT taxes, federal or country taxes, state taxes, local taxes, workers compensation, unemployment premiums or insurance, or any other payments."I do not invoice them, I am simply paid my earnings, that are calculated by them, weekly.They do charge VAT to their European/UK customers but it seems there is no way to charge them VAT and they have even included that in the site terms.Obviously this puts me in an interesting position in that by registering for VAT, and have very little to write off against it, I will be at 12.5% disadvantage (if I went for the FRS) because the VAT will be coming out of my income and I will not be able to pass the cost on. A hard pill to swallow.Would I be better simply earning under the threshold and avoiding registering or is there anyway around this?Also is this kind of wording in a contract with a contracter common or is this not usually the case?Thanks!
Submitted: 7 months ago.
Category: Tax
Expert:  bigduckontax replied 7 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The VAT Turnover level for registration is 83K in any one year as I am sure you are aware.

If you have to register because you approach or exceed the turnover limit then you will have to slice out the VAT you will owe to HMRC once registered from your takings. Your income would effectively be reduced. The only solution is to operate below the turnover limit.

In what country does your principal agency operate, just as a matter of interest?

I am so sorry to be such a wet blanket at this stage.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3114
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 7 months ago.

Thank you for your support.

Customer: replied 7 months ago.
Hi Keith,Sorry for my delayed response!I feared that may be the case as regards ***** ***** below the threshold, it is a hard decision to make I can either bite the bullet and pay the extra 20,000 odd in VAT/Tax and make 10/15k more take home a year or stay under the threshold and not pay the extra VAT/Tax.As for which country they operate in I am currently digging into this matter. As I am sure you can imagine this industry is not the most transparent! It seems they are a US based company on the face of it but I am trying to dig a bit deeper and find a bit more out about them.Thanks for the help even if it wasn't what I wanted to hear!
Expert:  bigduckontax replied 7 months ago.

Yes, the entry of VAT into the equation does rather make a difference doesn't it especially when you have minimal inputs to offset the tax.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.