Main site > MoneySavingExpert.com Forums > Work & Benefits > Boost Your Income > How much extra income can you earn before being t... (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
How much extra income can you earn before being taxed?
Closed Thread
Views: 6,190
Thread Tools Search this Thread Display Modes
# 1
Savvy cash
Old 13-04-2012, 1:30 PM
MoneySaving Convert
 
Join Date: Mar 2012
Posts: 104
Default How much extra income can you earn before being taxed?

Hi everyone, apologies if this has already been mentioned:

I work full time but like a lot of us here, earn small amounts on the side (eg: Ebay, SuperPoints, Swagbucks, Surveys, etc. The list is rapidly growing from all the handy hints on this forum!)

Is there a certain amount you can earn tax free every month? On top of your primary wage?

Or do you have to declare everything you earn to the tax man?? Obviously I'm not running a business or anything on the side-just adding to the pot for holidays, car maintenance etc!

I've been told different things-hence the confusion! Any help would be gratefully received

Thanks xxx
Savvy cash is offline
Report Post
# 2
Sixer
Old 13-04-2012, 2:33 PM
Serious MoneySaving Fan
 
Join Date: Oct 2010
Posts: 1,002
Default

You get one tax allowance per year, regardless of how many jobs you do.

In 2012-13 (tax years begin in April), it's 8,105.

Each 1 you earn over that - wherever it comes from - is taxable.

If you do some work that counts as self-employed (eg surveys), you need to inform HMRC and fill out a self-assessment form once a year.
Sixer is offline
Report Post
The Following User Says Thank You to Sixer For This Useful Post: Show me >>
# 3
ALIBOBSY
Old 16-04-2012, 4:17 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Feb 2007
Location: Sunny(ish) Lancashire
Posts: 4,010
Default

I have always assumed that if the survey sites pay as vouchers (ie amazon/argos etc) its not declarable. I know if you sell your own stuff off on ebay its not counted as "profit" for tax purposes, just if you buy and sell.

Mind you never looked that far into it as I am currently a SAHM so a non tax payer. Plus not really done much in the way of surveys recently-want to get back into it.

Ali x
"Overthinking every little thing
Acknowledge the bell you cant unring"
ALIBOBSY is offline
Report Post
# 4
Savvy cash
Old 16-04-2012, 9:55 PM
MoneySaving Convert
 
Join Date: Mar 2012
Posts: 104
Default

Thanks for both your comments- ALIBOBSY, I thought the same thing about vouchers and not having to declare them...

Can any other avid survey users comment on this?

Savvy cash x
Savvy cash is offline
Report Post
# 5
InsideInsurance
Old 17-04-2012, 11:12 AM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Jun 2011
Posts: 18,681
Default

Quote:
Originally Posted by Savvy cash View Post
I work full time but like a lot of us here, earn small amounts on the side (eg: Ebay, SuperPoints, Swagbucks, Surveys, etc. The list is rapidly growing from all the handy hints on this forum!)

....

Obviously I'm not running a business or anything on the side-just adding to the pot for holidays, car maintenance etc!
What are you selling on eBay? If it is your own possessions that you are selling as secondhand then there is no need to declare it. If you are buying things intentionally to sell or if you are making things explicitly to sell then HMRC will see things differently and state that you are a business in the form of a sole trader and thus must register as one for the purposes of NI and doing a self assessment tax return.

The Class 2 NI is done independently and you can claim small turnover exception.

The tax return will factor in all of your earnings (employed and self employed) and the tax you have already paid to calculate what taxes are due. As other have said, for income tax there is a single annual allowance for which all income sources are rated against.
InsideInsurance is offline
Report Post
# 6
MoneySaver82
Old 17-04-2012, 12:57 PM
MoneySaving Convert
 
Join Date: May 2008
Location: Hampshire
Posts: 116
Smile

Hi savvycash,

I'm in the same situation as you so thought I'd let you know what I've been doing to add to the comments of Sixer and Inside Insurance

You have to declare everything you earn regardless of whether you will end up paying tax on it or not.


If you are doing any kind of 'work' which includes surveys, ebay trading (ie buying things specifically to sell them on, not just getting rid of your old stuff) you need to register as self-employed (within 3 months of starting doing this extra work) and then fill in a self-assessment return every year. Sounds worse than it is - but it's really easy to set it all up online and fill in the forms there.


I just keep a spreadsheet of any money I get from the various survey companies, etc and then tot it all up at the end of the year and then deduct any expenses - eg an tiny allowance for electricity costs for runnning the computer plus printing costs for anything I print out stuff like that. I then end up paying 20% tax on whatever my profit is as I work part time and this takes me over the lower earnings limit (8105 this year) for paying tax anyway and everything above that you pay tax on - usually 20%.

I wrote to my local tax office asking the question about whether I have to pay tax for payments made by vouchers and had it in writing from them that you have to declare this income too unfortunately. Although other people on here have said their tax office has told them otherwise - if anyone's had this in writing would appreciate knowing so I can challenge what I've been told!?

Re: NI contributions I got a small earnings exemption certificate for Class 2 contributions as I'm only make a couple of hundred pounds a year on the additional work so nowhere near the limit (5595 for this year).

I found this page on the HMRC website pretty helpful - http://www.hmrc.gov.uk/working/intro...lfemployed.htm

Hope this helps!
Survey earnings for 2012-13 year:- 765.82!
MoneySaver82 is offline
Report Post
The Following 3 Users Say Thank You to MoneySaver82 For This Useful Post: Show me >>
# 7
Timay
Old 27-04-2012, 8:05 PM
MoneySaving Convert
 
Join Date: Mar 2012
Posts: 102
Default

Quote:
Originally Posted by InsideInsurance View Post
What are you selling on eBay? If it is your own possessions that you are selling as secondhand then there is no need to declare it. If you are buying things intentionally to sell or if you are making things explicitly to sell then HMRC will see things differently and state that you are a business in the form of a sole trader and thus must register as one for the purposes of NI and doing a self assessment tax return.

The Class 2 NI is done independently and you can claim small turnover exception.

The tax return will factor in all of your earnings (employed and self employed) and the tax you have already paid to calculate what taxes are due. As other have said, for income tax there is a single annual allowance for which all income sources are rated against.
Basically it's only if you are selling to make a profit I believe
Debt
Barclaycard (0% for 29 months) = 2500
Barclaycard (0% until September 14) =476.93
Barclaycard (0% until October 14) = 390.82
Barclaycard (0% until May 16) = 105.58
TOTAL DEBT = 10364 (aim to clear June 16)
Timay is offline
Report Post
# 8
soolin
Old 27-04-2012, 8:23 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Mar 2004
Posts: 53,411
Default

Quote:
Originally Posted by Timay View Post
Basically it's only if you are selling to make a profit I believe
Not exactly, any money from trading needs to be declared, so it is possible to be required to declare self employment without actually showing a profit.

The moment you buy something or make something with the intention of selling it on you are trading.
I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I'm a volunteer to help the boards run smoothly, and I can move posts there. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
New to Forum? Guide
soolin is offline
Report Post
# 9
antrobus
Old 29-04-2012, 10:12 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Oct 2010
Posts: 8,995
Default

Quote:
Originally Posted by Savvy cash View Post
How much extra income can you earn before being taxed?
Zero. Nada. Rien. (That's the official answer.)

Quote:
Originally Posted by Savvy cash View Post
... Or do you have to declare everything you earn to the tax man?? ...I've been told different things-hence the confusion!
Yes, you will be told different things. Let's put Ebay to one side - that's a question of whether you're trading or not, and has been answered - and talk about income from the likes of SuperPoints, Swagbucks, Surveys, etc.

Technically speaking that's taxable income, and should be declared.

Practically speaking however, you can just ignore it, because HMRC aren't really interested. If HMRC really wanted to, they could approach the likes of Valued Opinions or YouGov and demand a list of people they'd paid, and then approach each one of those people concerned to demand the tax due. HMRC don't do that because they don't want to get an extra 100,000 or more self assessment returns to deal with just so that they can collect an extra 20 or so. It's not worth their while.

Last edited by antrobus; 29-04-2012 at 10:23 AM. Reason: Removed some junk
antrobus is online now
Report Post
The Following User Says Thank You to antrobus For This Useful Post: Show me >>
# 10
antrobus
Old 29-04-2012, 10:23 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Oct 2010
Posts: 8,995
Default

Quote:
Originally Posted by MoneySaver82 View Post
...

I just keep a spreadsheet of any money I get from the various survey companies, etc and then tot it all up at the end of the year and then deduct any expenses - eg an tiny allowance for electricity costs for runnning the computer plus printing costs for anything I print out stuff like that. ...
A 'tiny allowance' for electricity costs?!?

I'd start off by claiming at least 150 a year for Business Use of Home. What are you paying for broadband? I'd be claiming back 25% or 50% (maybe more) of that as well. Your computer is now a business asset, so at least a proportion of the cost of buying that asset can be deducted against profits. Etc, etc.

That's why HMRC isn't really interested. It's not interested in getting 100,000 SA returns all showing 300 of income less 150 for Business Use of Home, 120 for Telecommunications, giving a net profit of 30 and 6 tax due.
antrobus is online now
Report Post
The Following User Says Thank You to antrobus For This Useful Post: Show me >>
# 11
Marteebies
Old 01-05-2012, 10:49 AM
MoneySaving Stalwart
 
Join Date: Apr 2010
Location: London
Posts: 285
Default

Only certainties are death and taxes!!
2014: 20 voucher from SurveyFriends, 10 cash payout from Panel Opinion too and working towards more from Valued Opinions currently.
2013: 35 and 50 vouchers from SurveyFriends! More than 15 made from other paid surveys sites (Yougov, Panel Opinion, Valued Opinions, Pinecone, etc.) Happy so far!
Marteebies is offline
Report Post
# 12
mamabuddah
Old 01-05-2012, 11:16 AM
MoneySaving Stalwart
 
Join Date: Mar 2008
Posts: 500
Default

Quote:
Originally Posted by antrobus View Post
A 'tiny allowance' for electricity costs?!?

I'd start off by claiming at least 150 a year for Business Use of Home. What are you paying for broadband? I'd be claiming back 25% or 50% (maybe more) of that as well. Your computer is now a business asset, so at least a proportion of the cost of buying that asset can be deducted against profits. Etc, etc.

That's why HMRC isn't really interested. It's not interested in getting 100,000 SA returns all showing 300 of income less 150 for Business Use of Home, 120 for Telecommunications, giving a net profit of 30 and 6 tax due.
There are example allowances I believe shown on MSE for running a small business from home, room allocated as office, proportion of electricity, broadband etc, capital allowances for computer / printers etc...but just be careful about declaring you run an office/business from home...there are other implications, none of which are to do with tax returns.
No two ways about this one: Anything Free is not a Basic Right..it had to be earned...by someone, somewhere
mamabuddah is offline
Report Post
The Following User Says Thank You to mamabuddah For This Useful Post: Show me >>
# 13
MoneySaver82
Old 03-05-2012, 12:17 PM
MoneySaving Convert
 
Join Date: May 2008
Location: Hampshire
Posts: 116
Post

Quote:
Originally Posted by antrobus View Post
A 'tiny allowance' for electricity costs?!?

I'd start off by claiming at least 150 a year for Business Use of Home. What are you paying for broadband? I'd be claiming back 25% or 50% (maybe more) of that as well. Your computer is now a business asset, so at least a proportion of the cost of buying that asset can be deducted against profits. Etc, etc.

That's why HMRC isn't really interested. It's not interested in getting 100,000 SA returns all showing 300 of income less 150 for Business Use of Home, 120 for Telecommunications, giving a net profit of 30 and 6 tax due.
I take your point that I could probably claim a bit more than I have been but don't really think from the HMRC guidance I can justify all the things you mention as I only use the room for a few hours each week to do surveys, etc - I think my situation would be more like Example 1 in this link - http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm
So totally agree this would be a fair kind of amount to claim in my situation and thanks for making me thing about this a bit more as it looks fair and they say would be accepted without question - but to start deducting 270 from what I've earned doesn't seem to fit in with what they say is allowable and to be honest doesn't seem like an ethical thing to do, but maybe just me!

Just think it's not really wise to suggest to people not to bother declaring their income because you feel HMRC won't be interested - I have a funny feeling they might be interested if they suddenly decided they can claim some penalties from you for not having declared your tax for several years!?
Survey earnings for 2012-13 year:- 765.82!
MoneySaver82 is offline
Report Post
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT. The time now is 2:16 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 17 December 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

MSE's Twitter Feed

profile
  • Specialist gadget insurers wrongly fail to pay out half the time, news from @financialombuds today. Our guide: http://t.co/3PlnKwWs37
  • Have you ever used a postal gold website to sell old bling? How did it go? Let us know your story.
  • Will your annual season ticket be going DOWN in January? Check using National Rail?s season ticket calculator (http://t.co/BsJCo1XXkh)