Bodyshop at home where to put free gifts on self assessment form

jazzyjustlaw

i am just finishing my self assessment but am unsure as to where to declare the free gifts (incentives) I received on my self assessment. Any help would be appreciated please.

[Deleted User]

I think that we need some more information that that : what kind of gifts? Money? Value? Are you employed or self-employed? Gifts from who - clients or employer for example?

jazzyjustlaw

I was self employed for the Bodyshop at home and if you reach certain sales you get free products which I believe are taxable. For example reach level 2 and you get items worth £45 for free either for you to use or to use at Bodyshop parties to sell more products.

TheCyclingProgrammer

Have you confirmed if those gifts are taxable? Gifts are not usually taxable unless given by an employer to an employee.

jazzyjustlaw

I was told that when I started I had to declare them. I am confused now. I will call the tax office tomorrow had wanted to avoid the long wait. If anyone else can help I would be grateful please.

booksurr

TheCyclingProgrammer wrote: »

Have you confirmed if those gifts are taxable? Gifts are not usually taxable unless given by an employer to an employee.

they are no different to any other form of benefit in kind, so yes they are taxable as they were received as a direct reward for meeting her sales targets, ie they are remuneration

jazzyjustlaw

Thanks Booksurr so where do I put them on the self assessment form?

[Deleted User]

Include/add to your turnover?

TheCyclingProgrammer

booksurr wrote: »

they are no different to any other form of benefit in kind, so yes they are taxable as they were received as a direct reward for meeting her sales targets, ie they are remuneration

Don't benefits in kind only apply to employees?

Edit: not sure benefit in kind is really the right term here but managed to finally find a page in HMRC guidance manual that seems relevant:

http://www.hmrc.gov.uk/manuals/bimmanual/bim45090.htm

So OP, it seems like you just need to include the market value in your turnover unless there is no money's worth value (if this is ever the case you should probably keep evidence).

booksurr

TheCyclingProgrammer wrote: »

Don't benefits in kind only apply to employees?

Edit: not sure benefit in kind is really the right term here but managed to finally find a page in HMRC guidance manual that seems relevant:

http://www.hmrc.gov.uk/manuals/bimmanual/bim45090.htm

So OP, it seems like you just need to include the market value in your turnover unless there is no money's worth value (if this is ever the case you should probably keep evidence).

it was not the right term to use for someone who knows what it means, but at the same time there is no way that the gifts are non taxable, they count as part of her remuneration

jimmo

If you look carefully at anything that Bodyshop gave you in writing about the “incentives” I rather expect that they said may be taxable rather than are taxable. That is because they don’t know.
It seems to me that the “incentives” are Bodyshop products and, when you receive them they will become part of your stock acquired at no cost.
The tax treatment then depends on how you use them.
If you sell them then, taken in isolation, the amounts you sell them for will be pure profit.
If you use them as samplers at selling parties they are things you acquired for nothing and sold for nothing so no effect on your profits.
If you take them (unopened) for your own (private) use you have to effectively charge yourself the full retail price and so increase your profits as if you had sold them.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM33630.htm
However, if you use them once as a sampler and then take them for your own private use you would have to charge yourself the going rate for a second hand, part used item. Not very much I think.
Just to complete the picture if the “incentive” you receive cannot be seen as stock then, because its not money, you would be chargeable on any “money’s worth”. Something we can look further into if we need to.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM40051.htm