~Avon Hints & Tips (Part 7) ~

MessyMare

Just looked at the 'declaring your avon earnings to HMRC' bit on my SL's fbook group....basically saying that none of us need to declare! Surely this is pretty bad advice to give your reps??

I,_Geek

ColleenPamela wrote: »

Just looked at the 'declaring your avon earnings to HMRC' bit on my SL's fbook group....basically saying that none of us need to declare! Surely this is pretty bad advice to give your reps??

A SL on Connects (may be the same one) said she'd spoken to an accountant who said that if you think you'll earn less than the personal allowance (and have no other taxable income) you should wait and see, and then declare. The account said if you're already paying tax on a job you have to declare straight away.

Even though this came from an accountant it seemed to be playing fast and loose with the HMRC (not something I'd like to get on the wrong side of!).

Plus if you're claiming WTC or any other benefit you might have to declare you're an Avon Rep for that, and having a reference number from HMRC or a completed tax return from the previous year would surely help (I was asked for a tax return reference number on a WTC form). You couldn't keep quiet about it for years and then decide you want to claim a benefit - at which point it becomes "and um... I've been an Avon rep for the last x years... I hadn't mentioned it until now..." If your income is under the personal allowance you won't pay tax anyway. Doing the tax return isn't that bad and is only once a year.

MessyMare

I,_Geek wrote: »

A SL on Connects (may be the same one) said she'd spoken to an accountant who said that if you think you'll earn less than the personal allowance (and have no other taxable income) you should wait and see, and then declare. The account said if you're already paying tax on a job you have to declare straight away.

Even though this came from an accountant it seemed to be playing fast and loose with the HMRC (not something I'd like to get on the wrong side of!).

Plus if you're claiming WTC or any other benefit you might have to declare you're an Avon Rep for that, and having a reference number from HMRC or a completed tax return from the previous year would surely help (I was asked for a tax return reference number on a WTC form). You couldn't keep quiet about it for years and then decide you want to claim a benefit - at which point it becomes "and um... I've been an Avon rep for the last x years... I hadn't mentioned it until now..." If your income is under the personal allowance you won't pay tax anyway. Doing the tax return isn't that bad and is only once a year.

Luckily I'm already registered through doing mystery shopping, and if you don't earn too much there's not too much to input! Just did strike me as strange that when I was signed up it wasn't mentioned at all, and I just keep thinking I wouldn't want anyone to get into trouble after following this advice!

Coming to the conclusion that my SL is probably only interested in the tiny amount of commission I earn her

lozza1985

To be fair - a lot of asms and sls don't understand the tax side of it - no end will say its "cash in hand" - which yes I suppose it is, in that your earnings are cash in your hands when you've done your deliveries, but that implies it's not taxable, which in most circumstances it is. They are probably passing on the information that they were told when they joined, so your sl was probably told you don't need to register, so she's just passing on that advice.

Obviously everyones position is different - but it's bad advice that they say don't bother - I tell people, theres the number, technically you should register, but what you do is up to you - it's not my job to explain about tax (I'm not legally able to anyway), I just point them in the right direction and say they don't need to tell me what they do, then I can deny any knowledge of it.

lozza1985

Aesop wrote: »

Yes Facebook in it's wisdom have changed the way groups are set up. You have to do it in the new format, which doesn't always work for everyone! I have a group in the old format for something else that I do. I tried to set up a new group in the new format but couldn't get people to join...lol.

well they've joined as I've added them to the group so they have no option lol.

I had wondered why I'd been added to lots of new local/selling groups - now I know why, they've obviously selected everyone on their friends list they've been added to the group.

I like the fact that you can do the documents, but not that you can't have a discussions page. I'll get the hang of it in time I suppose!

MessyMare

lozza1985 wrote: »

To be fair - a lot of asms and sls don't understand the tax side of it - no end will say its "cash in hand" - which yes I suppose it is, in that your earnings are cash in your hands when you've done your deliveries, but that implies it's not taxable, which in most circumstances it is. They are probably passing on the information that they were told when they joined, so your sl was probably told you don't need to register, so she's just passing on that advice.

Obviously everyones position is different - but it's bad advice that they say don't bother - I tell people, theres the number, technically you should register, but what you do is up to you - it's not my job to explain about tax (I'm not legally able to anyway), I just point them in the right direction and say they don't need to tell me what they do, then I can deny any knowledge of it.

That seems the best way to be honest! I just think to myself...well for the sake of being organised with invoices and receipts and giving up an hour or so to do the return, better than getting fined if I was found out and hadn't registered!

lozza1985

ColleenPamela wrote: »

That seems the best way to be honest! I just think to myself...well for the sake of being organised with invoices and receipts and giving up an hour or so to do the return, better than getting fined if I was found out and hadn't registered!

It's the only way I can do it without running the risk of getting into trouble for giving tax advice, especially when people get any kind of tax credit/benefit, I have no idea how declaring will affect them. Probably the tax office wouldn't either :rotfl:At the end of the day, it's up to them to decide to do the honest thing and declare it, as you say it's easier to do it than end up with a fine!

MessyMare

Just did my last scheduled delivery for today got one more to do for weds and then the products are all out there Know I've got a guaranteed order for several jewellery sets from mum's next door neighbour, and hopefully as I've covered another part of my estate I'll have some juicy orders or even lots of little ones, I don't really mind at this stage!

It is a bit annoying that OH isn't really supporting me at all- I took on a much lower paid job and while I can still carry on covering all our commitments, I felt a little bad at taking my dream job and putting more pressure on him so I've started mystery shopping, avonning, surveying, with a vengeance to try to bring in at least a little extra...but it doesn't seem to be sinking in that I'm trying to make this money for us both

lozza1985

ColleenPamela wrote: »

Just did my last scheduled delivery for today got one more to do for weds and then the products are all out there Know I've got a guaranteed order for several jewellery sets from mum's next door neighbour, and hopefully as I've covered another part of my estate I'll have some juicy orders or even lots of little ones, I don't really mind at this stage!

It is a bit annoying that OH isn't really supporting me at all- I took on a much lower paid job and while I can still carry on covering all our commitments, I felt a little bad at taking my dream job and putting more pressure on him so I've started mystery shopping, avonning, surveying, with a vengeance to try to bring in at least a little extra...but it doesn't seem to be sinking in that I'm trying to make this money for us both

unfortunately some OH are rubbish - I remember when I first become a sl, a lovely lady signed up, but didn't do very well with orders so didn't continue - and as she said, her OH was complaining as well that the housework wasn't being done as much as usual....I said I would have told him where the hoover was and said do it yourself. She was shocked at the suggestion!

Thankfully my OH is great, even if he does complain that I spend a bit much time networking - ie on facebook - but it's helping us get extra cash and as he knows how much extra avon earns us he does help with delivering & collecting books. I ban him from sorting & bagging orders - he did it once and I had to go through and check them all as he had 2 products left over which should have been in orders pmsl.

Maybe write a list out of how much extra you're earning through avon etc etc, and show him at the end of one month how much you've got for you both - hopefully that'll make him see sense!:beer:

MessyMare

Oh Lozza, you're so nice...I so wish you were my sl!