Here’s some tax advice for Avon reps, whether you are new to Avon or are already up and running.
Do You Need to Register Your Avon Business with HMRC
The tax advice is YES you do if you sell more than £1,000 in your avon business. If you sell less than £1,000 then you may be eligible to claim for the HMRC Trading Allowance.
There is often a misunderstanding amongst avon sellers that their earnings are tax free so they can sell without any tax obligations. This is not true.
Avon Reps must register with HMRC and declare their earnings every year. Earnings may be tax free because they earn below the personal allowance, however they still need to be declared to HMRC using a self assessment tax return.
Tax Advice for Avon Reps
If you are a setting up or have already set up an Avon Business then it is your responsibility to:
- Register with HMRC
- Understand your tax and national insurance obligations
- File a tax return once a year by 31 January
- Keep business records and receipts for all your income and expenses
Remember even if you choose to engage an accountant to deal with this on your behalf, it remains your responsibility to make you file everything on time. So familiarising yourself with the rules will put you in good stead.
Depending on how confident you feel with numbers you can choose to file your own tax return.
Bookkeeping Basics for Avon Reps
The information you need to include in your tax return are a summary of all your Avon business income and expenses. You can do this with a spreadsheet or a bookkeeping software.