Income Confusion.

PRINCESSX87

Hello Peeps.

I know i have posted on here many times about so many things lol
But this one has really confused me badly!

I started working for betterware in the middle of march 09*
training finished and i started on my own 31/03/2009*

So i posted on here about the NI and tax issue i had with Inland Rev, And a poster came up with really sound advice / Information.
(About saving some of my wages to cover the tax bill at the end of the year.)

So i have got 7 order's that will go in on tuesday (tomorrow) and i have worked out that i have around £30.00 coming to me!
Also i have more books going out tonight.

*Problem*

If i'm only making £30 from order's over £120.00 then i have to make this at least every week in order to continue making ends meat.
My partner is working full time now so he is covering Everything.
(Which i know sounds cheeky but that's something we have both agreed on) So my wages was to cover our wedding.

But things need paying and i dont know if i should touch this money as we aint well off enough to cover any tax bill at the end of the next coming tax year.

So my question is:-

Is there any way of finding out how much my tax should be this time next year?

I have asked Ir and they have told me nothing as they dont know if i would meet target ect...

So i'm confused!
Sorry if none of this makes any sence, but i dont know any better way to explain?

Help!

Scaredy_Cat_3

Firstly, it's not cheeky for your partner to pay for everything, and you save for the wedding. It's a partnership! My hubby and I both worked full-time for years, then when we had kids I dropped to part time and now (sadly) am not working at all since I was made redundant (well, I'm doing a bit of mystery shopping but that's not relevant to this). The point I'm making is that hubby has supported me over the years, but then I do household chores and look after the kids etc., which would cost him money without me. We view all money coming into the house as joint and it's used for household spending, so it doesn't really matter who earned what.

Secondly, if you are earning those sort of sums you probably won't pay tax at all. Others can tell you the exact amount you're allowed to earn but it's something like 5k-6k per year before you pay any tax at all. You'd need to be earning over £100 per week (roughly) to be required to pay tax at the end of the year.

EDIT see this link, you can earn over 6k before you need to pay tax, so that works out at about £124 per week.
http://www.hmrc.gov.uk/rates/it.htm

PRINCESSX87

Scaredy_Cat wrote: »

Firstly, it's not cheeky for your partner to pay for everything, and you save for the wedding. It's a partnership! My hubby and I both worked full-time for years, then when we had kids I dropped to part time and now (sadly) am not working at all since I was made redundant (well, I'm doing a bit of mystery shopping but that's not relevant to this). The point I'm making is that hubby has supported me over the years, but then I do household chores and look after the kids etc., which would cost him money without me. We view all money coming into the house as joint and it's used for household spending, so it doesn't really matter who earned what.

Thank you, thats our view, But some people would say well i should work and get a better job!

Secondly, if you are earning those sort of sums you probably won't pay tax at all. Others can tell you the exact amount you're allowed to earn but it's something like 5k-6k per year before you pay any tax at all. You'd need to be earning over £100 per week (roughly) to be required to pay tax at the end of the year.


Thats what i thought, with my last job i got told by the tax office that if i earn under £6k a year then they can NOT tax me.

EDIT see this link, you can earn over 6k before you need to pay tax, so that works out at about £124 per week.
http://www.hmrc.gov.uk/rates/it.htm

But this time i'm be declared as S/E so surly dont that make a difference?

Scaredy_Cat_3

PRINCESSX87 wrote: »

But this time i'm be declared as S/E so surly dont that make a difference?

Nope! I am also self-employed now (mystery shopping), and my income will be waaaaaay below the 6k limit so I don't expect to pay any tax either.

All you need to do is keep a record of the income and expenditure, so keep a log of what you earn, and alongside that a log of what you had to spend. I don't know what that would be for Betterware, but for me it covers things like mileage, or stationery (paper to print the assignment notes etc). Then at the end of the year you total them up. You will have earned (for example) £1560 (income), but then your expenses (travel, paper etc) may be £104 for the year, so you deduct the £104 from the £1560 and you are left with £1456, which is what you would pay tax on. That is below the 6k quoted on that link, so therefore you don't pay tax. Does that make sense?

PRINCESSX87

Hiya girls and guys.

This evening i have got an email, from avon saying that there is now an opening for sales leader in my area. And a rep wants to come around and see me....! Now this is great news (Now i have the tax issues sorted.)
But i need more information..I have looked on there website and they dont really give alot away, So is there anyone on here that is a sales leader for avon that can give me any info?

I'm doing betterware at the moment and even though it is working for me, just betterware aint going to pay for my wedding..So i need more and kinder liking that i'm free to meet new people, friends, family ect..
Plus i need to be open and free to help with family issues.

So peeps info pleaseeeeeeeee!!!

Many thank in advance!

Princessx87!!

lozza1985

Hi Princessx87 you're probably better posting a message on the avon hints & tips thread (unless you already have done I haven't looked at it yet today) asking for Sales Leader advice! I'm a rep and I love it, making approx £100 every three weeks.

ellies_angel

I have been in party plan for over 7 years. I also work full time so I have to pay 25% of any earnings from my own business.
Things I claim for.
Initial starter kit, any mileage to training @40p per mile
Any additional products I buy to demonstrate over the course of the year
All mileage associated with my business, to and fro partys, if I drop of catalgogues, orders, to the post office, to any meetings or trainings. If its to do with my business I claim at 40p per mile.
Any postage, stamps envelopes, anything I post with regard to my business I claim back the postage.
Any gifts I have bought to encourage a potential hostess to book a party and any gifts or discounts I have offered to encourage larger spend.
All buisness tools, catalogues, invitations, order forms etc.
Now for 3 years I was a manager and had my own downline of consultants so any expenses occured with that I also claimed. I got a mobile contract for my business and would claim all of that (I only used it for my business)
EVERYTHING to do with my business, but you need receipts, if you haven't got a receipt for it, don't claim it................if they decided to audit you you need receipts to back up your claim. Mileage I only claim 40p a mile. I claim nothing else with respect to my car. I have a sheet of paper where I record the date, the mileage at the start, the end and why I was making that trip.
It is such a pain right at the start, but if you keep track as you go its so much better.
Remembers you only pay tax on the money earned after you have taken off all your expenses, so that £30 you made wasn't really £30 because you haven't taken off the cost of your expenses. Take off your expenses and then see how much you have earned. if its your only job, you won't have tax to pay until you have earned over £5,000 ish, but your tax office will tell you what your code is.
As I said keep a track of your ingoings and outgoings so you can see whats happening as you go along. That way no nasty suprises.
Good luck with your new venture x

Dr.Shoe_2

If you and your partner are down as a couple for tax purposes then you may be taxed straightaway. I suggest some sort of small business forum.

Caroline73_2

Dr.Shoe wrote: »

If you and your partner are down as a couple for tax purposes then you may be taxed straightaway. I suggest some sort of small business forum.

People are taxed as individuals not couples.