Do Body Shop Consultants Pay Tax?
By
HuutiMoney
If you are a Body Shop consultant in the UK and wondering whether or not you need to pay tax to the HMRC, you will find the answer to this question in the following blog post. In addition to this, we will also explore the taxation process for Body Shop consultants, how their taxable income is calculated and how to estimate the amount of tax they would need to pay within a tax year.
Do Body Shop Consultants Pay Tax?
Yes, customer consultants who work for The Body Shop in the UK are required to pay tax on their income.
As a Body Shop consultant, you must adhere to HM Revenue & Customs (HMRC) regulations and declare any UK-earned income. How much tax you pay will depend on a variety of different individual factors.
The amount and the rate at which tax applies to a Body Shop consultant will depend on the taxable income of your business. Whether you are self-employed or employed will influence this as well.
Your total income will determine the tax band that you are going to be placed in. This will further determine how much of your income is subject to taxation as well as the rate at which tax is paid.
Since most Body Shop consultants work as self-employed individuals earning their income through commissions on the sales they make, they need to be registered as self-employed with the HMRC and pay their taxes through Self-Assessment tax returns.
This means that, as a self-employed Body Shop consultant, you will work for yourself, set your working hours, sales strategies, and payment collection modes and make all the necessary decisions for the product sales you generate.
You will need to register yourself with the HMRC as a self-employed Body Shop consultant and file your Self-Assessment tax returns before the deadline for each tax term.
Whatever your income level, it is important to ensure that you are paying any tax due. If you think you need to speak to an accountant or a financial advisor to ensure that you are paying the correct amount of tax and that you are also setting aside a portion of your income to cover tax payments in the future, the Body Shop and Direct Selling Association recommend the following organisations:
DSL Accounting Warwick House Banbury Road Southam Warwickshire CV47 2PT
Telephone Number: 0800 77 234 22
Email Address: ask@dslaccounting.com
KJ4 Consultants 1 Bell Lane Lewes BN7 1JU East Sussex
Telephone Number: 01273 480480
Email Address: info@knilljames.co.uk
PRB Accountants LLP Kingfisher House Hurstwood Grange Hurstwood Lane West Sussex RH17 7QX
Telephone Number: 01444 458252
Email Address: info@prbmp.com
Not declaring income to HMRC or paying less tax than is due could result in fines and penalties, so take the time to make sure your taxes are accurate and up-to-date.
However, if your earnings as a BodyShop are less than £1,000, you do not need to pay tax or register yourself for Self-Assessment with the HMRC.
How Do Body Shop Consultants Pay Tax In The UK?
Body Shop Consultants in the UK file their tax returns through the self-assessment scheme by following the below-listed steps:
- registering for self-assessment
- submitting details of earnings and allowable expenses
- filing tax returns
- paying their taxes
If you have already registered yourself for a Personal Tax account, you can file your self-assessment tax online. Alternatively, you can file your tax returns using a paper form. For this, you will need to fill in form SA100 And form SA103S.
Once your tax returns are filed and submitted, you will receive a confirmation message and reference number from the HMRC. They will also inform you of your taxable income and the amount of tax that you need to pay.
If you are yet to register yourself with the HMRC, you should know that taxpayers filing their Self-Assessment tax returns need to register themselves with the HMRC by October 5th in the second year of their business. After your registration is complete, you will be issued a Government Gateway ID which will help you set up your Personal Tax account to file your tax returns.
How Do Body Shop Consultants Calculate Their Tax In The UK?
If you are a Body Shop consultant in the UK, you can calculate the tax due on your income in the same way that any self-employed taxpayer would.
This means that you should first calculate the sum of all your earnings including commission, bonuses or any other income gained through product sales. This is your operating income.
Then, you should calculate the sum of your allowable expenses and deduct the total from your operating income. You will be left with the amount of your taxable income.
Allowable expenses for Body Shop consultants include (but are not limited to) the following:
- Electricity, internet and telephone bills
- Marketing expenses
- Insurance costs
- Transport expense
- Bank charges for a business account
- Accountant’s fees
How Much Tax Do Body Shop Consultants Pay In The UK?
The amount of tax that is paid by a Body Shop consultant will vary depending on how much income the business generates.
You will need to fill out a Self-Assessment tax return form to ensure that all of your income is declared and that any tax due is paid. The tax rate for body shop consultants in the UK will vary depending on your income.
The current rates are:
- 20% on earnings between £12,501 and £50,000
- 40% on earnings between £50,001 and £150,000
- 45% on earnings over £150,000
Additionally, if your income is above £100,000 for any one tax year, you will also be liable to pay an additional rate of tax.
Conclusion:
The above discussion helps to conclude that customer consultants who work for Body Shop in the UK need to pay taxes on their income. For this, they should be registered as self-employed taxpayers and file their tax returns under the Self-Assessment system.
References:
Tax Guide for Body Shop Consultants – self-employed.co
What first steps do I need to take once becoming a Consultant with The Body Shop At Home?