if you sell Avon, Bettwerware etc, should it be declared as an income

[Alwayssearching]

Until this eve, I thought it was as it's a job. My neighbour sells one of them and tbh some weeks the delivery is huge and shev says she can make £80-100 a book.. She's on jsa or similar and she says she doesn't have to declare it as its classed as pocket money whether she had a Ft job too or not. I thought you would of had to declare as maybe some sort of self employment? Or am I being dumb?
Now it doesn't bother me as to what she does, or if it's fraud or not etc as it's her choice, her life et.
It's just a general wondering as to whether it's meant to be or not? Or whether you think it should be declared or not?

Of course it's income. What else is it? Should be declared as such.

It is income yes but so long as its your sole income you dont declare it or pay tax till it exceeds a limit of around 10k but as she's claiming benefits she should be declaring it as income to them to they can adjust her benefits accordingly

I must have skipped over the 'pocket money' exemption section on the tax return forms I fill in every year. Damn!

I would imagine that you would have to declare it, especially if she's receiving benefits.

There is a small business exemption of 1k (think it's income not profit), but I think you should declare anything over that even if under income tax threshold

It says here you have to complete a tax return if you have self-employed income of £1000 or more.

www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

Of course it's income, and of course it should be declared so benefits can be assessed correctly.
When they find out and she's having to pay back, and / or go to court, she'll realise.
Of course, up to you if you let them know or not.

Is your neighbour trying to recruit you? I’ve heard Avon has moved into the Younique model lately?

I side eye the profit she is claiming she has made. Often people humour the sellers for the first few books but then it drops off.

No, not trying to recruit me. I already have a job and certainly don't have spare time to do anything else lol
Yeah thought as much as dp is S/E and has to declare even small extras.

Like I say, I was unsure, especially because it's kind of a commission really but yeah makes sense.
She's been doing it about 8 years now I suppose. Nice ' pocket money' lol

Oh I wouldn't grass her up. That's her choice.. But I am quite good friends so may bring up in convo thay in fact it should be declared

You can jet her know she has to declare it, but she doesn't have to pay tax on profits up to £11700 (I think that's the threshold). Might affect her JSA obviously.

Of course it's an income. Suggesting it's not is like those FB posts 'hi, I'm selling my cakes I make, it's not a business or anything...' um.

Might not have to pay tax on it if she doesn't earn much, but she's wrong that she doesn't have to declare it. You definitely should be doing as it's a form of income.

Of course. The only 'pocket money' income you are allowed is selling your own unwanted things e.g .eBay, car boot, and even then it must not be buying in for the purpose of selling.

She wishes! I might try that one on HMRC next year rather than bothering doing my SA accounts.

The JSA rules are really harsh though. You get to keep just £5 pound a week and then that's it, until you've earnt all the JSA back.

Makes it really hard, and demotivating to try and start out in self-employment.

You should declare it.
Universal benefit has an assumption that you are earning minimum wage from a self-employed job (it allows a start-up period), so will affect benefits

I might tell work to stop deducting tax and NI from my pocket money

@starsandstuff you don't have to pay tax on profits up to £117k? Seriously? Where did you get that from?

Somersetter

Put your glasses on....you missed out a zero!

Income tax threshold this year is slightly higher than £11,700 at £11,850.

£11700 is £11.7k Somersetter

Haha oops yes missed a zero

Ha yes, I missed that 'don't worry about pocket money' section on the self-assessment form too!

Declaring yourslef self-employed (even if very part-time) and filling in the SA form is just another task but quite simple really. The cash accounting required is very straightforward.