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Coordinator
Superstar
Posts: 5,557
Registered: ‎28-10-2014

Anyone thinking of becoming a rep should first know the tax implications.

Thinking of becoming a rep? Signing up to become an Independent Avon Representative and/or an Independent Avon Sales Leader is signing up to a self-employed business.

Having signed, in order to comply with the law, you must register yourself with HMRC (formerly the Inland Revenue). You can do this online at https://www.gov.uk/working-for-yourself/what-you-need-to-do or on the phone by ringing your local HMRC office.

You must also notify the offices of any income based benefits that you are receiving.

Failure to register with HMRC and/or benefits offices can result in you being fined.

Contrary to what some people believe, Avon is not 'a cash in hand job' or 'a bit of pocket money'. The earnings from it are just that, earnings, which have to be declared for tax and benefits purposes. xx

PC rep for 21 years, SL for 10
WARNING: replies may contain facts you've not been given
Coordinator
Superstar
Posts: 5,557
Registered: ‎28-10-2014
In response to rosie25

Re: Anyone thinking of becoming a rep should first know the tax implications.

@rosie25, everyone should do it as soon as they sign as a rep. Every signer-upper should bring this to a new rep's attention. That they don't, whether though ignorance or deliberation is a great annoyance to a lot of us and totallt unfair on the new rep.  Don't ask us why your ASM misled you....ask HER! xx

PC rep for 21 years, SL for 10
WARNING: replies may contain facts you've not been given
Representative
Contributor
Posts: 51
Registered: ‎07-03-2016
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Do u think it ok to put today's date as I cant remember when I signed up lol as this is what I have done and all signed up with HMRC and had to contact benefits too
Representative
Contributor
Posts: 51
Registered: ‎07-03-2016
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Does it matter about date as I forgot my actual start date so I told them from today
Coordinator
Superstar
Posts: 5,557
Registered: ‎28-10-2014
In response to rosie25

Re: Anyone thinking of becoming a rep should first know the tax implications.

To be honest, not the best idea to give government departments false information, no. Did you tell the benefit offices 'today' as well? xx

PC rep for 21 years, SL for 10
WARNING: replies may contain facts you've not been given
Representative
Contributor
Posts: 51
Registered: ‎07-03-2016
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Yes cos I can't remember when I started here and no one to help me
Representative
Contributor
Posts: 51
Registered: ‎07-03-2016
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

I haven't even put an order in yet
Coordinator
Superstar
Posts: 5,557
Registered: ‎28-10-2014
In response to rosie25

Re: Anyone thinking of becoming a rep should first know the tax implications.

Ah, if you haven't sarted with your first order then today will be fine. xx

PC rep for 21 years, SL for 10
WARNING: replies may contain facts you've not been given
New Contributor
Posts: 3
Registered: ‎09-05-2016
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Hi everyone when I speak to the person who signs us up in will be making sure I ask all about it and how it works with the tax credits and/or the benefits systems
Coordinator
Occasional Contributor
Posts: 8
Registered: ‎09-10-2015
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Hi i was a rep but ive now started as a sales leader and sogned an agreement with avon lastweek so now i been charged my 35.00 and ive had 75.00 for the people ive joined now i have a letter to update my housing benefit help and tax credits etc so i dont know what to put or what proof to send anyone know ? I only do avon 2-3 hours per month and some months may not even earn much so how do tax etc work as im a part time carer so am i self employed too as avon are meant to pay so is it via my bank or cash etc im new to this ??? Cheers
Coordinator
Superstar
Posts: 5,557
Registered: ‎28-10-2014
In response to scat123

Re: Anyone thinking of becoming a rep should first know the tax implications.

Payments from your SL earnings are paid into your bank. Payments from your rep business are paid in the normal way. When you fill in your self assessment tax form you must include all earnings from self employment (no need to separate them out). So add together your *carer earnings*, your *SL earnings* and your *rep earnings minus expenses* to get your income figure. Re the benefit offices,you will have to 'guess' at a figure and update it regularly. xx

PC rep for 21 years, SL for 10
WARNING: replies may contain facts you've not been given
Representative
Occasional Contributor
Posts: 9
Registered: ‎08-02-2016
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Hi I really need help. Iv been doing Avon since Feb 2016. I get child tax credits, housing benefit and council tax benefits. My husband does taxi and he gets working tax. I'm so scared that my housing benefit and council tax benefits will stop if I tell them. I really want to do Avon but if it's going to ruin my two major benefits, Then is it any point doing Avon at all?
Representative
Respected Contributor
Posts: 4,273
Registered: ‎30-10-2014
In response to shabanakhan2001

Re: Anyone thinking of becoming a rep should first know the tax implications.

You do have to tell all parties  involved - HMRC and the benefits office so it's up to you if you feel its worth your while, or not, to do Avon. If you don't tell them, then there could be consequences (fines, your benefits stopping while they investigate etc).

Carolyn
Rep since March 1996 with
year's break in 2017 and rejoined May 2018
www.avon.uk.com/store/uniquechicboutique
Coordinator
Superstar
Posts: 5,557
Registered: ‎28-10-2014
In response to shabanakhan2001

Re: Anyone thinking of becoming a rep should first know the tax implications.

If you've been signed up since Feb then you have already covered two tax years, 2015-16 and 2016-17. Have you told none of the benefit offices? (That you have not told them is a far bigger deal than 'whether there is any point to it'. The child tax credit I am not sure about...but HB, working tax credit, council tax benefit etc are all benefits whose value has been calculated on your declared income. Having income that you've not declared is not good. So get it declared!)

I am assuming that the person who signed you up in February (SL or AM) 'neglected to mention any of this'....? I also assume that, given your circumstances, you wouldn't have taken it on had you known it could impact on your benefits.....? Which could go a long way to explaining why she 'neglected to mention it'. She has done you NO favours. Ring all the benefit offices as soon as you can. xx

PC rep for 21 years, SL for 10
WARNING: replies may contain facts you've not been given
Representative
Respected Contributor
Posts: 4,273
Registered: ‎30-10-2014
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Very good advice @goddessfatima

 

It may seem like a faff, but it's better to be upfront than receiving a fine etc!

 

MPs may get away with fraud, but people like you and I won't! (Basically fraud is a scary word, but undeclared income is fraud!) @shabanakhan2001

Carolyn
Rep since March 1996 with
year's break in 2017 and rejoined May 2018
www.avon.uk.com/store/uniquechicboutique
Coordinator
Superstar
Posts: 5,557
Registered: ‎28-10-2014
In response to shabanakhan2001

Re: Anyone thinking of becoming a rep should first know the tax implications.

And let us know how you get on. xx

PC rep for 21 years, SL for 10
WARNING: replies may contain facts you've not been given
Representative
New Contributor
Posts: 3
Registered: ‎03-03-2016
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

Hi I've been an Avon rep since March and I had no idea that I had to declare this as self employed until I read this. Will I likely be fined for declaring this now 5 months after I've joined?
Representative
Contributor
Posts: 36
Registered: ‎28-12-2014
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

OMG ive never been told any of this is it ever worth all the aggro Smiley Sad

Representative
Respected Contributor
Posts: 4,273
Registered: ‎30-10-2014
In response to sniper7762

Re: Anyone thinking of becoming a rep should first know the tax implications.

[ Edited ]

@sniper7762 - it's not as bad as it sounds! You should register as self-employed. 

Carolyn
Rep since March 1996 with
year's break in 2017 and rejoined May 2018
www.avon.uk.com/store/uniquechicboutique
Representative
Contributor
Posts: 36
Registered: ‎28-12-2014
In response to carolynsateam18

Re: Anyone thinking of becoming a rep should first know the tax implications.

hey i didnt get told any of this doi need an accountant or pay national insurance stamps?really worried nowSmiley SadSmiley Sad

Representative
Contributor
Posts: 36
Registered: ‎28-12-2014
In response to goddessfatima

Re: Anyone thinking of becoming a rep should first know the tax implications.

you seem like a lovely person willing to help those who havent a clue thank you your inputxxx