Working as an escort can be extremely lucrative. Accompanying a client to a dinner or event is an innocent enough occupation. Whether or not your services extend to sex is not something which need be discussed. However, something we are all obliged to do is to pay taxes properly.
This need not be a concern, as long as there are precautions taken. An escort is essentially a self-employed person, and should approach their tax records accordingly. Registering as a self-employed person means that you must pay your own National Insurance and VAT if you are operating as a business, not a freelancer. Offering massage in London or any other service is just the same.
Agencies exist to make introductions between escorts and clients; Asian escorts often use agencies to get over any language barriers. These agencies are careful not to get involved in any ‘under the table’ deals. however. They arrange the meetings, be they a date or a function and take money for organising the meeting, some escorts will pay the agency a retainer for finding these clients. This is not the same as acting as a pimp for an escort, as they have contracts which clearly state under what circumstances money changes hands. In these instances, you are acting as a freelancer, you would be able to write off tax against any agency fees, but you must be careful when declaring what you earn, as any discrepancies based on what the agency has charged a client and what you receive may raise questions as to how you earned the extra income.
If you are working independently, then the profits may be more, but so are the risks. If you use a regular driver for example, make sure that you are his employer, not the other way around. This way you can not only write off what you are paying, but also indemnify the driver against any potential investigation. Making money from the sexual activity of another is illegal. By employing the driver, you are paying him to carry out a service, rather than him procuring work for you, or controlling any of the finances. You will be able to write off tax for clothing and business expenses as well as day to day expenses, possibly rent. Make sure that you have an understanding with clients that you are declaring the money you make from them, and that they are clear on the services you are legally providing. It is perhaps pertinent to declare the monies you make from clients individually, rather than having ‘accounts’ per client i.e. Mr X £200 every Friday.
Essentially, as long as you are careful and honest about what you declare, and how you declare it, there is no reason why you, as an escort would not be able to run a perfectly efficient and profitable business.