By joining Avon as an Independent Sales Representative and/or Sales Leader, you are going into business for yourself. In other words, you are now self-employed.
You will enjoy both the risks and rewards of running your own business. However, there are a few things that you should know in order to stay on the right side of HMRC. So, to make your life easier, we have set out several guidelines to follow:
Register with HMRC as Self Employed
As ever with HMRC, rules change and new tax allowances become available. You need to ensure that you get information from a reliable up to date source. There are a few rules that have changed in the last few years, and people still share the old rules. This is what you need to know:
You will need to signup with HMRC once you have reached more than £1000 in sales (please note this is sales, not commission). See the following video: https://youtu.be/UJedUd0-o3k
It’s really easy to do, just go to https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed (or google “hmrc register as self employed”).
The deadline for registering is the October following the tax year you started your business. So if you started your business between 6 April 2020 and 5 April 2021, you have until October 2021 to register.
If you don’t register and you should have done, you could face a fine, so make sure you understand your obligations or discuss with a qualified professional to ensure you are doing the right thing.
Keep your Records Safe
You will receive invoices from AVON with your orders; make sure you file them safely!
There are 2 reasons you need to keep them:
- You will need your invoices to calculate your income and expenditure to submit your Self Assessment Tax Return.
- You will need to retain them as backup for the numbers you submit to HMRC in case they ever want to investigate you.
Any other receipts and paperwork to prove your income and expenditure should also be kept.
Note: this can be done electronically. If you don’t have space to store physical records, you can scan everything and keep them electronically (but make sure you have backups!).
Know Your Deadlines
HMRC have deadlines for submitting your tax return and for payment of any taxes due. Make sure you have diarised those dates and don’t forget them! There are penalties due for late submissions and interest payable on late payments.
Understand the Rules
There is a lot to know about tax; personal allowance, trading allowance, mileage allowances, simplified expenses, the list goes on.
Everyone’s situation is different, so generic one size fits all advice doesn’t always work. If you have a particularly interesting tax situation, it may be worth paying for an hour of a tax accountant’s time, so you get more personalised advice.
That being said, if you know you have a fairly normal, uncomplicated tax situation, then you can get a lot of the information that you need from the internet, just be sure it comes from a reputable source (like this one!).
Free rep Facebook Group
You will find free resources, including a spreadsheet to download either as Microsoft Excel or Google Sheets. Go straight to the “Units” section in the group to find an introduction to the group and all the resources.
Buy the Book:
All the information conveniently in one place as well as bookkeeping sheets at the back of the book if you are more comfortable with pen and paper than a spreadsheet! Buy through Amazon or direct from our website.
for Sales Leaders/Area Managers
Downloads/printables for your team, bulk ordering of books and book Elyse for training Zooms for your team.