Income from prostitution

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    A claimant has notified us that she derives £120/week for less than 16 hours/week prostitution.
    [b:57df68b220]So how to treat this as ‘income’ fore HB/CTB purposes?[/b:57df68b220]
    Is this an illegal/criminal activity-like drug supplying?
    She does receive Tax Credit income as a self employed masseuse.
    Has anyone had any similar cases and what was your approach?


    What she is doing may or may not be illegal but either way I don’t think matters in terms of how it is treated for HB purposes – it’s earnings.

    To be honest I think the answer would be the same if someone was to actually declare that they earned money from drug dealing. In fact I seem to remember an old thread where a claimant had done exactly that!

    Stephen Murray

    I would agree with Andy – treat as earnings.
    Would be curious to know how IR are dealing with this (assuming they’ve been advised the same).

    I also remember an earlier thread on a similar subject and posted a link, although it might not be the same one that Andy’s thinking of.

    Reply To: Council Tax benefit overpayment/Fraud/Death

    Kevin D

    This is a dangerous thread to reply to! 😯 But here goes…

    Prostitution is not, in or of itself, illegal (neither is escorting, irrespective of whether that includes prostitution). Pretty much everything else around it is though (pimping / living off immoral earnings / running a brothel / soliciting etc).

    As for the alleged income, any specific google search ( for such activity will quickly show that the rates are not consistent with what you are being told (a qualified masseuse, only offering genuine relaxing massage / aromatherapy etc, can easily obtain more than £20 per half hour). Income from such activity is fully taxable. And the, er, expenses are deductable as usual….


    Andy Thurman

    Maybe you need to send a visiting officer 😆 😆

    Further to previous replies – I would ask for evidence of ‘masseuse’ earnings, expenses etc. & assess as S/E


    For tax purposes the position is as follows:

    “If the activities of a prostitute or any other person deriving income from prostitution are organised in such a way as to constitute a trade or profession, the profits are liable to income tax. This was confirmed by the ‘Miss Whiplash’ case, CIR v Aken [1990] 63TC395.”

    Presumably this case could be considered “Persuasive” for HB/CTB purposes


    Many thanks for your replies.
    I feel that assessing as a self employed person is the most appropriate way of determining her income.
    It was our Fraud/Visiting Officer who has been dealing with the case-which has been one of his more memorable cases.


    I seem to recall that Peter Delamothe from LB Camden admitted on this very site that he had experience of dealing with ladies who plied their trade outside Kings Cross station.

    I also recall that in the 1970’s there was a lady called Helen Buckingham (I kid you not) who took on the Revenue and lost over taxation of earnings from prostitution.

    She accused the Revenue in court of pimping and livimg off immoral eatnings. The Court was having none of it and threw out her case. She ended up paying the income tax on her earnings

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