Tax

jhgkp

Hello

I am so very confused. Heard at weekend as an Avon Rep I should be registered for tax.

Now I work full time, pay tax and national insurance. Now if I register, as far as I can see I would pay 20% on anything I earn on Avon, thus wiping out any earnings I make with them and so then earn nothing. I don't earn alot with Avon approx £5-25 a month

I only took on the Avon stuff to help us out with only me working in the household.

Can any on advise? Am I best to give up?

Thank you.

chrisbur

jhgkp wrote: »

Hello

I am so very confused. Heard at weekend as an Avon Rep I should be registered for tax.

Now I work full time, pay tax and national insurance. Now if I register, as far as I can see I would pay 20% on anything I earn on Avon, thus wiping out any earnings I make with them and so then earn nothing. I don't earn alot with Avon approx £5-25 a month

I only took on the Avon stuff to help us out with only me working in the household.

Can any on advise? Am I best to give up?

Thank you.

Assuming that your profit from Avon does not take you into a higher tax band then on the details given you would be liable for tax at 20% and there would be no NI liability (you might have to get a low earnings certificate for NI not sure of the exact details at the moment).
Not sure how you work it out as "wiping out any earnings I make with them and so then earn nothing" I make it 80% of profit remaining.

soolin

As above, tax is only a percentage of the net income after all expenses , so it can't wipe out all your profit.

I have several different income streams, a little bit of PAYE and a few self employed sources, I still get one set of allowances which I use against my PAYE and one of my sole trader income schemes, and anything over and above that is taxable. It is not at all unusual for people nowadays to have more than one main income stream.

Don't forget as well that you only pay tax on your net income, so all expenses associated with it can be deducted.

HappyMJ

jhgkp wrote: »

Hello

I am so very confused. Heard at weekend as an Avon Rep I should be registered for tax.

Now I work full time, pay tax and national insurance. Now if I register, as far as I can see I would pay 20% on anything I earn on Avon, thus wiping out any earnings I make with them and so then earn nothing. I don't earn alot with Avon approx £5-25 a month

I only took on the Avon stuff to help us out with only me working in the household.

Can any on advise? Am I best to give up?

Thank you.

Technically yes you need to register as self employed and declare your earnings each year by filling out a self assessment form each year.

However, on earnings of £5-£25 per month I would argue that it's just a hobby and you aren't doing it in the expectation of a profit.

The average of £5-£25 profit divided over the year is £180 and basic rate tax is 20% so you'll have a tax bill of £36 a year. You won't have to pay NI contributions. You can opt out of that.

You haven't mentioned expenses. Driving a car for just 30 miles each month (just 1 mile a day) related to your Avon work and you've got yourself an annual expense of £162 reducing your annual profit.

jhgkp

Thank you all for your advice.

I think I got into a flap. I thought they would have to take 20% off all the money (sales, items bought, sales tools, etc) but I understand it is 20% of just my sales - profit.

I have sent a request to HRMC for SA, so will take it from there when it comes in. Avon will have to let people know more when they sign up about this.