The Mystery Shopping thread - part 6

me_and

skintbuthappy81 wrote: »

I'm glad it's not just me confused with this tax malarky. I have decided to do MS after reading several items about it, however this won't be on a regular basis as I have a full time job, so it will just be when I have free time (in other words, not a lot) I have looked on the Inland Revenues website and am a bit confused... would this class as a second income even though it will be a rare occurence? and if so will they just deduct 20% as and when I carry out the assignments? Hope someone can enlighten me.

Short answer: Yes, and no.

Long answer: Regardless of whatever else you do, mystery shopping is an income, and it is work that you get paid for, so by my understanding, you have to pay tax on it. However, the mystery shopping companies won't deal with the tax paperwork for you, so what they pay you is pay that hasn't been taxed.

When you earn money in a normal job, the tax is taken off through Pay As You Earn (PAYE). Since you're classed as self-employed for mystery shopping, no tax is taken off, so you'll owe the tax man 20% of whatever you earn through mystery shopping.

In particular, the mystery shopping companies can't take the money off you, as they don't know how much you spend on things like printing or transport. As an example, an off-licence job I performed recently paid me a £4 fee and a £6 reimbursement. To complete that job, I ended up overspending in the shop, which the MS company wouldn't reimburse, I cycled to and from the shop (20p per mile is allowed as costs for cycling), plus I printed off the job notes (I've heard 6p per page quoted as a reasonable allowance). That puts my costs at £9.51, so I only pay tax on £4 + £6 - £9.51 = 49p for that job. If the MS company took tax off for me, they'd have to tax me on the full £4 fee.

So to summarise again, you will have to register as self-employed, and you'll have to fill in a tax return. If you don't have much income through it, though, you'll only have to list how much you made and how much it cost you on your tax return (but you will have to keep more accurate records yourself, just in case they decide to check up). If you're in the 20% tax band normally, you'll then get a bill for 20% of your profits from MSing.

I know a couple of people who were only MSing occasionally, and who didn't bother to register or pay tax, but I don't think it's worth the risk. Paying tax is a nuisance, but it wouldn't stop me, and the paperwork seems daunting when it's described, but when you look at it, it's pretty simple.

Scaredy_Cat wrote: »

…

Hence, my feeling is that there is no benefit in delaying and I'd rather just get the forms in so I can stop worrying about them!

… Please let me know if I'm missing something.

That all seems to make sense to me, Scaredy Cat! If you're not going to be paying tax, there's no point in holding off!

Peridot1 wrote: »

I have just changed my mobile number but I dont know how to inform Retail Maxim, does anyone have a number or email address I could contact them with?

PM sent…

skintbuthappy81

Thanks that's really helpful I was debating whether to inform the tax office or not, like you I don't think it's a risk worth taking. Do I just phone them or is it a form that needs filling out? (I really am clueless where tax is concerned)

Timmne

Read the opening post!

me_and

skintbuthappy81 wrote: »

Thanks that's really helpful I was debating whether to inform the tax office or not, like you I don't think it's a risk worth taking. Do I just phone them or is it a form that needs filling out? (I really am clueless where tax is concerned)

Either, as stated in the opening post (which I'd forgotten about). I'll add my own experience, as well, though: I phoned, which seemed far less hassle than printing and filling out a form. You can then ask them on the phone to send you the forms to get a small earnings exception so you don't have to pay NI contributions.

Don't forget to use http://www.saynoto0870.com, rather than using HMRC's advertised premium rate numbers...

skintbuthappy81

Thanks, I haven't had much chance to read the opening post or any others for that matter, so you have been very helpful.

Hollypear

Peridot1 wrote: »

Happy new year everyone_party_

I have just changed my mobile number but I dont know how to inform Retail Maxim, does anyone have a number or email address I could contact them with?

Thanks Peridot

Peridot the number is 08459005005 or 01543496900

bettyboo71

Money_Maker_Shaker wrote: »

I delayed paying my NI bill as I was debating going down the small earnings exemption route, anyways I've now decided I don't want to be exempt so phoned them to explain why I was late. In fact I'm back about 3 months late and the lady in the NI office wasn't bothered in the slightest, just told me to wait for the next bill and they would automatically add the outstanding amount onto that. So looks like NI deadlines are much more laid back than tax ones!

This is the same as my experience - it seems that they just add any outstanding amount on to the previous bill and there doesn't seem to be a late-payment charge or interest added at all. However, if you miss a couple of payments the wording on the letter gets a bit stronger !

jobbingmusician

There IS training provided. By us. It's called the first post. Read page 1 of this correspondence.

Timmne

Oh I get it, a spammer with two log-ins... cunning!

achte008

In Holland we have Mysteryshopping as well. It does not pay verry well

you can't make a living just by mysteryshopping