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Small self employed earnings

Small self employed earnings

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The daughter of a client who is employed under PAYE decided to work also as an Avon representative

In the period Dec 2009 and Mar 2010 she earned gross commission of £271 and in April & May 2010 when she finished she earned £28 I am told by HMRC that she must complete a t return no matter how small the small income

After allowable expenses she will have made a loss.

Also I am told that Avon make an Self Assessment return to HMRC of all payments made to agents

Any ideas as to how she gets out of this onerous and wasteful exercise?

Replies (6)

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By Jekyll and Hyde
23rd Sep 2010 15:27

Commercial basis

I can't really see a way forward as i cannot see why any person would undertake Avon as a hobby trade? Surely she is undertaking this with a view to a profit, be it short term or long term.

If long-term then surely she would want to do one of 2 things:

1) Off-set loss against other income (commercial trade).

2) Carry loss forward against future profit of same trade.

Therefore I cannot really see why it is a wasteful exercise. Also she does not have to complete a full self-employment suppliment she can complete the short self employed pages.

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By bernard michael bayly
23rd Sep 2010 15:31

Small earnings

Thanks for that - I was aware of what should happen but she was trying to avoid getting into the Self Assessment

grasp of HMRC. Surely they should have a de minimus rule

She couldn't get on with Avon so packed it up

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By JCresswellTax
24th Sep 2010 09:19

Letter ?

I assume the advice you received from HMRC was from the call centre ?  Sounds like someone reading from a script.

I would try a letter first of all setting out the income earned and saying that after deduction of expenses your client made a loss.

Then go on to say, we could set this loss off against other income but do not think this is commercially a good decision due to the costs involved preparing and submitting a return etc.

Therefore, it is our intention not to submit a return on this occasion.

Also mention that the income from this source has now ceased.

See what response you get, its worth a try.

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By bernard michael bayly
24th Sep 2010 09:23

Small income relief

Thanks to you both.

It's nice to be able to vent my frustration via Accounting Web with people who understand

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By Jekyll and Hyde
24th Sep 2010 09:39

Not to undertake Avon

If the Avon is not going to make a profit and she doesn't want the hassel of self assessment, tell her to stop being an Avon rep. That would be me real advice to her.

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By bernard michael bayly
24th Sep 2010 10:49

Small earnings

I did say in my earlier post that she had packed Avon up

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