MYSTERY SHOPPING THREAD XV - please, no mention of client names or fees on here

Lil_Me_2

Are either of you on another MS forum? There is an excellent thread on there about someone who got questioned on their tax return.

Chocforever

Income plus any reimbursements are included as taxable income. You can deduct any expenses incurred wholly and exclusively for the purposes of the assignment. The problem with most things that we have to buy is that their purchase was not exclusively for the assignment; you will use the supermarket groceries, read the book, wear the item of clothing etc. There is a case for arguing that food on the go is tax deductible because, outside of the assignment itself, it only provides an incidental benefit. Other than that, it is only likely to be very specific purchases with no enduring use and no resale value that are tax deductible.

What all this means in practice is that if you are a taxpayer, you will pay tax on the item you have to buy (unless you have high petrol expenses to offset it) to the value of the reimbursement. So there is no point doing a mystery shop if you don't want or have any use for the item you have to buy.

misssarahleigh

jen_br wrote: »

Ok sorry... Let me try again ..

IN answer to your question YES!

So you would report the amount you would get paid i.e. 20.00 (10.00 fee 10.00 purchase)

but in expenses you would list the 10.00 purchase.

the only time you wouldn't record the expense is if the item goes back like buying shoes etc and sending them back to the company

Ok, in that case i'm doing it right then (not filled out the tax for yet but set the spreadsheet up based on the same info)

My point was some people only class certain things as an 'expence' where i class everything, like you say unless it goes back.

Thank you for that, can go for my lunch a little less confused.

jen_br

hahah no dramas as long as you report the ENTIRE amount you get to the govt your doing it right

misssarahleigh

Chocforever wrote: »

Income plus any reimbursements are included as taxable income. You can deduct any expenses incurred wholly and exclusively for the purposes of the assignment. The problem with most things that we have to buy is that their purchase was not exclusively for the assignment; you will use the supermarket groceries, read the book, wear the item of clothing etc. There is a case for arguing that food on the go is tax deductible because, outside of the assignment itself, it only provides an incidental benefit. Other than that, it is only likely to be very specific purchases with no enduring use and no resale value that are tax deductible.

What all this means in practice is that if you are a taxpayer, you will pay tax on the item you have to buy (unless you have high petrol expenses to offset it) to the value of the reimbursement. So there is no point doing a mystery shop if you don't want or have any use for the item you have to buy.

The items i purchase may have value and may be of benifit. But i certainly would not have bought the items had i not been on a mystery shop.

I therefor class that as exclusivly for the assignment at the end of the day, we need the reciept to get the report done and get paid, without the reciept/purchase regardless of what the item is we will not be paid.

The job could not be completed without the purchase and what i have chosen to purchase is irrelevant. e.g i bought a green dinasor teddy thing the other day. off sod all use to me but the bf seems to want it so he is welcome. I hardley see the benifit to me.

but i may enjoy a book i read that i have bought as part of a ms. does it mean that if i don't like the book, it isn't really of benifit as i didn't like it and therfor don't claim as an expense but if i do enjoy the book i shouldn't claim the expence lol

Gets a bit tricky. I'm quite happy to debate with the tax inspector shoould he ever come looking for me

jen_br

Yeah according to the girl I spoke to she said as long as you can prove the expense was warrented for the job (ie the job sheet etc) you are fine! I staple all my recipets to the job sheet and file.

the only time this would be different is lets say you had a grocery store and the min. purchase was 5.00 and you spent 7.00 you could claim 5.00 but not the 2.00

misssarahleigh

jen_br wrote: »

Yeah according to the girl I spoke to she said as long as you can prove the expense was warrented for the job (ie the job sheet etc) you are fine! I staple all my recipets to the job sheet and file.

the only time this would be different is lets say you had a grocery store and the min. purchase was 5.00 and you spent 7.00 you could claim 5.00 but not the 2.00

What about if you got £20 for food but spent £25?

It was for the job.

Chocforever

The point is you haven't bought the item exclusively for the shop. You have used it or given it to someone else. The term wholly and exclusively is in tax law and I'm afraid your points don't stand up. You can't pick and choose which items are tax deductible on the basis of personal taste.

The point of MSing is that it is the shop's normal customers giving feedback. In doing so they are getting a 60%/80%/100% deduction on the price of the goods (the percentage depends on the rate of tax the person pays). By doing MSing to raise income, you risk falling into the trap of buying goods you would not have done without the MS incentive. That is not a reason to change the calculation of taxable income; it is a reason to think twice before you take the job as you could end up worse off. And, yes, I have also done this and have a turtle soft toy to prove it!

misssarahleigh

Chocforever wrote: »

The point is you haven't bought the item exclusively for the shop. You have used it or given it to someone else. The term wholly and exclusively is in tax law and I'm afraid your points don't stand up. You can't pick and choose which items are tax deductible on the basis of personal taste.

The point of MSing is that it is the shop's normal customers giving feedback. In doing so they are getting a 60%/80%/100% deduction on the price of the goods (the percentage depends on the rate of tax the person pays). By doing MSing to raise income, you risk falling into the trap of buying goods you would not have done without the MS incentive. That is not a reason to change the calculation of taxable income; it is a reason to think twice before you take the job as you could end up worse off. And, yes, I have also done this and have a turtle soft toy to prove it!

Ah, i see the point. (and notice that you didn't find anything else worthy than the stuffed green thing lol)

I see the point of your argument. I'm in no way saying i'm correct jst that that is the way i view it based on the information i have read from the forum.

I my be inclined to ring HMRC and have a little debate with them.

Chocforever

Alas, there are others. Like items of sportwear I could have bought cheaper elsewhere, even after taking into account the taxed reimbursement....

But coming home one day with a stuffed turtle and then having to write a report about buying it made me reconsider what was and wasn't a good use of my time!