tax on sales incentives

breedso

Please can somebody help clarify something for my girlfriend. She has a full time job and also works self employed in direct selling- selling cookware in peoples houses - she earns comission on sales but the company she represents offers sales incentives to her - often pieces of cookware etc.

My girlfriend is completing her tax return and somebody has suggested she should declare the incentives as taxable income (by including the value of the goods she receives). Neither of us are accountants but the HMRC tax guidelines BIM45090 would indicate this is correct.

Surely this is a dis-incentive if she has to pay tax on the value of the goods she receives as an incentive???

It should be all about increasing household income not paying more tax. I am not sure if avon and betterware sellers etc receive incentives and would be in a similar situation??

Thanks in anticipation.

jhp

The tax board where the tax gurus hang out is here http://forums.moneysavingexpert.com/forumdisplay.php?f=22