Survey sites - questions on tax

Sam_G_3

You know how for most of these survey sites you get 'rewarded' with Amazon vouchers or money into your PayPal account etc., well are you supposed to inform the tax man about any vouchers you receive or money you receive into your PayPal account?

I assumed that you didn't for vouchers but you had to for PayPal payments as technically you can convert that into "real" money in your bank account?

Luvplacebo

I think you have to for both, as although vouchers have like a 0.001p cash value they have a real money value for the site you spend it on. I'm not sure but I do just to be on the safe side.

Sam_G_3

Just did a (long) search on Google and came up with a link to a PDF file on the HMRC website:

http://www.hmrc.gov.uk/helpsheets/hs207.pdf

The bottom of page 6, "Certain gifts", if I read this correctly it looks like you don't pay tax on gift vouchers as technically the survey site is not my employer?

dazza.mk

Sam_G wrote: »

Just did a (long) search on Google and came up with a link to a PDF file on the HMRC website:

http://www.hmrc.gov.uk/helpsheets/hs207.pdf

The bottom of page 6, "Certain gifts", if I read this correctly it looks like you don't pay tax on gift vouchers as technically the survey site is not my employer?

That helpsheet basically details the exceptions/exemptions for items not to appear on a P11D. As any survey sites are not connected to your employment it is irrelevant.

PasturesNew

If you are doing surveys you would be counted as self-employed, so any reference to employment is irrelevant.

Sam_G_3

Yes but it says on the first page:

Non-taxable payments or benefits for employees

and

You do not have to pay tax on benefits and expenses covered by concessions or exemptions. If the concessions or exemptions apply to you, do not enter the benefits and expenses concerned on your Tax Return. Brief details of the most common exemptions and concessions follow.

Sam_G_3

PasturesNew wrote: »

If you are doing surveys you would be counted as self-employed, so any reference to employment is irrelevant.

Yes but what about when it comes to payment in gift vouchers (hence my quotes from that PDF file)?

The self employed reference technically is incorrect, as I could be working full time and merely fill in a tax return, declaring any money from survey sites as 'other income'.

susie81

As far as I am aware completing survey sites is a self-employment hence you are self-employed if you complete them regularly. It is the same as for mystery shopping for example.

If you did a one-off then it would be casual income.

I've registered my OH with HMRC as being self-employed as a mystery shopper and self-employed as completing online surveys.

If he receives vouchers we will declare them on his tax return. There are deemed to be 'readily convertible assets' which basically means they are like cash - you can turn them into another asset. They are still remuneration for work you have done. If you were paid in sweets for example you officially would have to declare them, the value being their market value, as you could turn them into cash by selling them - hence it is your income. If vouchers weren't taxable income then everyone would be paid in HMV vouchers say rather than in cash.

I could just imagine asking a builder would you like me to pay you in Currys' vouchers so you don't have to declare it on your tax return? How funny would that be - everyone dealing in vouchers rather than money.

These are obviously extreme examples but it puts the idea across well I think.

I also believe, but don't hold me to this, that HMRC can identify by corresponding with the survey sites who is registered so if you are doing it regularly they may well know about it and if you don't declare all your income then it's on your own head.

If you are deemed self-employed then there is also the £100 penalty for not registering with HMRC within 3 months of the month you started.

PasturesNew is also correct that any reference to employment is irrelevant as you are not employed by the survey sites therefore not an employee. To summarise regular survey site = self-employed in HMRC's eyes.

Sorry to ramble on or if I have come across in the wrong way - I really don't mean too. Just don't want anyone to get collared by HMRC. They can come down harsh when they want to.

susie81

I found the official line - taken from the self-employment tax return guide for 08/09.

"Your total business takings for the accounting period may be referred to as your turnover. Turnover is all the money earned by your business and includes:

cash or cheques
fees, tips and commissions
the value of any payments 'in kind' - that is, not payment by cheque or cash - for work done or goods sold. "

It doesn't specifically mention vouchers but I would say that it comes under payments in kind i.e. not cash.

This is from the self-employment pages but is relevant as regular survey income implies self-employment.

Hope this helps.

dave4545454

no don't bother informing the tax man about vouchers, read this thread

http://forums.moneysavingexpert.com/showthread.html?t=2057887

Lethal

When you say doing surveys regularly and therefore having a "regular" income from them, how much do you mean? I have had £30 in amazon vouchers in the last 4 months, would that count?

And out of interest, has anyone actually called HMRC and asked cause i recall several months ago seeing someone reply to a similar thread saying they called them and HMRC said not to bother about it.