Susan is a teacher who decides to take up cartooning as a hobby. She attends classes and discovers that she has a real talent for it. She starts to design and produce party and event invitations for her friends without charge. On occasions, she received gifts such as a bottle of wine as a token of gratitude.

Susans designs prove to be extremely popular and she receives requests for other types of work from a wider range of acquaintances. She starts to actively seek referrals for other commissions even more widely and begins to develop a regular clientele. She pays her brother who works in the IT industry to set up a Facebook page. She also starts to charge commercial rates for her work. She has not given up her occupation as a teacher and these activities occupy all of her spare time.

Advise Susan on assessibility of 1) gifts and 2) gross receipts from the charges at commercial rates for income tax purposes.