Mystery Shopping Thread 20 **PLEASE DO NOT MENTION CLIENT NAMES OR FEES ON HERE**

misssarahleigh

Thanks for the help on that one guys.

whitelabel

Lil_Me wrote: »

If questioned by the tax man you would have absolutely no leg to stand on. What is the benefit to your business of you doing that job?

If the only purpose is to create a tax loss then it's avoidance of tax and HMRC do not look kindly upon that!

Have you never been asked by a company to do a rubbish pay / loss making job, in order to later get a very good one ?

I have, and quite often get asked to do long distance/ low pay fee jobs (usually revisits that some one else has messed up) but that I will be given preferential offer of better paid jobs before general release
. So a business decision to make a small loss on a job to secure a lager profit on a another or many others that could overall generate a larger taxable profit, is a good business decision, is it not ?

I appreciate not every one will be able to justify that, but if the jobs figures stack up, I can see it being a valid arguement

lalli_pickle

There are a lot of accountants on this thread so I would suggest a lot of our 'experts' actually are experts when it comes to HMRC

If you want to be strict about it, HMRC do like the 'wholly, exclusively and necessarily' rule meaning items such as a judges robes, although only worn when at work, were not an allowable expense as they served a dual purpose by protecting the judges modesty (a personal benefit). However in my experience, tax inspectors generally take a pragmatic view and if the job brief requires you to purchase something to complete a job it will generally be allowable. Of course it depends on the inspector

The best defence in any case is to keep clear and specific records so that you can justify any expenses claimed and don't try to take advantage. If the brief says make a purchase of £1 so that you get a receipt. Then don't try to claim £30 weekly shop as an expense because you 'spent £1 to get the receipt'.

Mileage will generally be allowable if you keep good records as will printing it is only specific purchases that could cause issues.

And remember that although HMRC target high risk business, they are also required to do random checks so you may be looked at even if you have done nothing wrong

Finally if you use an accountant they often offer insurance against inspections which will cover any expenses.

proshopper

whitelabel wrote: »

Have you never been asked by a company to do a rubbish pay / loss making job, in order to later get a very good one ?

I occasionally enter into agreements with MS companies: I will do a certain selection of jobs (including the occasional "reimbursement-only") as part of a package, either at my own behest or at theirs. This is what it is all about when I am looking to make a living. On some occasions, the reimbursement is definitely not a beneficial expense: I only took that job to secure other jobs and a blanket bonus payment.

In such cases, my diary always shows what I picked up, when and why. I feel that this would hold sway if I was ever needed to justify what I have allowed or disregarded as benefits.

dazza.mk

whitelabel wrote: »

Have you never been asked by a company to do a rubbish pay / loss making job, in order to later get a very good one ?

I have, and quite often get asked to do long distance/ low pay fee jobs (usually revisits that some one else has messed up) but that I will be given preferential offer of better paid jobs before general release
. So a business decision to make a small loss on a job to secure a lager profit on a another or many others that could overall generate a larger taxable profit, is a good business decision, is it not ?

I appreciate not every one will be able to justify that, but if the jobs figures stack up, I can see it being a valid arguement

100% with the details to back it up its a completely valid argument, its people who use it as an excuse without having the existing relationship with the allocator to justify it that will be on dodgy ground.

But the individually allocated reimbursement jobs that come as arrangements such of these are a completely different kettle of fish to fastest finger first reimbursement jobs.

Lil_Me_2

whitelabel wrote: »

Have you never been asked by a company to do a rubbish pay / loss making job, in order to later get a very good one ?

We're not talking about rubbish pay jobs though, we're talking about reimbursement only jobs. And yes I've been asked, doesn't mean I accept it though! Normally if I'm asked to do a reimbursement only job I negotiate some form of money which is enough justification for doing the job.

Overall I make a handful of loss making jobs each year, but whilst they might individually be a loss they're usually part of a route so overall it's still a profit. As I said before, I don't do this for fun it's a serious business that I look to make real money on.

invalid_username_2

tax doesn't have to be taxing....





...but it usually is :mad:

jen_br

RE : Tax.

How they know? How do they know about the plumber etc. Basically every company you sign up for is treating you like "the plumber" All their money is made out to Bob Smith for XX jobs. So there is a record of it.

You could try and get away with it... but-- for the sake of a few bob that you may owe is it worth the fine?

mimi1234

jen_br wrote: »

You could try and get away with it...

Hell no!

Sweetie, we are mystery shoppers and one of our characteristics should be HONESTY.

I know for a fact, if I tried getting away with it, I would get caught and probably locked up for life or something like that (well probably just a fine, lol!)

Also, I think they do mini courses at Tax Offices, so if people are unsure about things, maybe do a bit of research into them, or just nip into the Tax Office and ask one of the advisors. That way it's all legit and you know the correct answer etc.

whitelabel

Lil_Me wrote: »

We're not talking about rubbish pay jobs though, we're talking about reimbursement only jobs. .....

I don't do this for fun it's a serious business that I look to make real money on.

To me anything less than a decent pay (min double figures) for the job is rubbish pay and reimbursement only jobs come in to that bracket. the location, length of report and work on site is taken in to account by me to determine a "rubbish job" and if ill take it or not.

Its a serious business for me too, but by doing *some* reimbursement only jobs / low paid Ive managed to secure sometimes jobs into triple figures that I wouldnt have been offered had I not taken the rubbish ones.

Networking and communicating with allocators in this manner and building a good relationship with them, means you can (depending on location) step aside from the oversubscribed lists of the fastest finger poor payers and work along side some of the companys that can still offer reasonable jobs when they come up to make it a worthwhile (but as you are already aware, no means easy) profitable business.

I too will try and get them in to a route when I do take them, but its not always possible and so you have to take the "loss" on those jobs.