Mystery Shopping Thread 21 *PLEASE READ THE OP FIRST**PLEASE NO CLIENT NAMES OR FEES*

dazza.mk

teendude wrote: »

For reimbursement jobs I've always been recording the cost as an expense and an income. Is that alright!?

Afraid not, the actual HMRC terminology (and I might be paraphrasing here) is that to be an allowable deduction it must be incidental to the job at hand, so for a fee earning job the expenses are incidental as you are doing the job for a fee. For a reimbursement only job you are doing the job for the free food/accomodation etc, therefore income= reimbursement value, no reimbursemnet claimed therefore profit = reimbursed expenses (note that is the simple view as there might be other possibilities such as claiming mileage - within reason)
Note the above is very simplistic it is slightly more complicated.

Willgetthere

lanny275 wrote: »

Hi, I need some advice please. I did my first mystery shop today for GAP at a burger restaurant in my local town.
I am positive the staff believed me to be a mystery shopper. I usually go to the restaurant about once a week or so so am quite familiar with the staff, usual state of the place, usual service etc.
Today however ALL the staff were asking customers if they wanted a receipt. In all my years of frequenting this restaurant I have NEVER been asked this, nor have I ever heard anyone else be asked. As this is a fairly small branch there are only 4 tills so easy to eavesdrop on other customers being served.
As soon as I said yes to a receipt it was like someone has pressed a buzzer! I suddenly had 2 people serving me, a fresh burger was made up for me, even though I could see they had what I'd ordered in the warming bay. I was offered sauces, extra salt all with big bright toothy smiles!
To be honest I found the whole thing a little unnerving.
I then sat down to eat my meal and noticed 4 staff members, one of which must have been a regional manager as he wore no uniform, name badge etc. They were all huddled in a corner whispering then looking at me! I know I sound paranoid, I'm almost laughing at how conspiratorial this sounds but it was SO obvious.
During my meal I was approached by an employee asking if everything was alright with my meal and the second I reached for my coat another employee came, asked if I'd finished and whisked away my tray to the bin!
A lady at the table next to me even asked what I'd done to get so well looked after!
I then left my table to check out the toilets followed swiftly by a cleaner who just sort of hovered about in the loos for a few minutes waving a mop at the floor!
As I was leaving the restaurant I was asked by 3 different employees if everything was ok with my meal etc and thanking me for coming.
In all it was the most bizarre experience I have ever had at one of these restaurants. I usually find the staff to be mildly helpful at best and downright rude at worst.
I would also add that no other customer was receiving this 'special treatment' which made it all the more obvious.
I am wondering what timescale the restaurant is given for a mystery shop and whether they figured it was probably me because I wanted a reciept. As previously mentioned I have never been asked or given a receipt before, even when paying by card.
Should I tell GAP about my suspicions?
Sorry if I've waffled on a bit, any help much appreciated.

Ive just done my first one today too and experienced just the same - they even came out with balloons for every child in the whole place!

teendude

dazza.mk wrote: »

Afraid not, the actual HMRC terminology (and I might be paraphrasing here) is that to be an allowable deduction it must be incidental to the job at hand, so for a fee earning job the expenses are incidental as you are doing the job for a fee. For a reimbursement only job you are doing the job for the free food/accomodation etc, therefore income= reimbursement value, no reimbursemnet claimed therefore profit = reimbursed expenses (note that is the simple view as there might be other possibilities such as claiming mileage - within reason)
Note the above is very simplistic it is slightly more complicated.

hmmm ok I think I understand. Sorry for all the questions!

EDIT: Just saw misssarahleigh's post all makes sense

jen_br

Look at it this way.. .when you get a company car its considered a TAXABLE benefit.. so is the jumper or meal that your eating...

misssarahleigh

teendude wrote: »

hmmm ok I think I understand. Sorry for all the questions!

So for a certain company that I can't mention that is reimburse only that reimbursement is seen as income?

two more examples to clarify then;

Fee + Reimbursements. say there was a fee of a fiver and you were allowed to make purchases that would be reimbursed up to the cost of £4.
Income would be fee + reimbursement and expense would be the purchase as it is incidental of the actual job?

And one I did yesterday was a flat fee with no reimbursement but you had to make a purchase, the purchase can be claimed as an expense?

That's correct, with one small note.

If the fee for job is £10 and you need to spend £8/9 in store, although they don't call it a reimbursement only job that's pretty much what it is.

Look at it honestly. If you doing u'd job for free food or stuff pay the tax. E.g you spend £10 on a new perfume on a reimbursement only job. As you have to pay tax on the money technically it's cost you £2. Still a bargain.

If it's not something you want simple answer is not to do the job.

CupcakeLisa

i have just registered today with hmrc, started mystery shopping at xmas. When will i need to complete a tax return? next year?

do i need to break down my exprenses or can I lump them all together? Also i dont drive so im assuming i claim my bus travel as an expense, do i need recipts and if i done more than one job in a day do i count the bus just once or for every job?

dazza.mk

teendude wrote: »

hmmm ok I think I understand. Sorry for all the questions!

So for a certain company that I can't mention that is reimburse only that reimbursement is seen as income?

two more examples to clarify then;

Fee + Reimbursements. say there was a fee of a fiver and you were allowed to make purchases that would be reimbursed up to the cost of £4.
Income would be fee + reimbursement and expense would be the purchase as it is incidental of the actual job?

And one I did yesterday was a flat fee with no reimbursement but you had to make a purchase, the purchase can be claimed as an expense?

Theoretically, although its still not 100% cut and dry ie assume you've got a fee of £1 and reimbursement of £10 it is going to be hard to argue the the reimbursement was incidental. It's only cut and dry where HMRC have specified the rules (ie mileage rates etc). As if HMRC don't agree with your arguments (admittedly there are internal appeals processes but) they are judge, jury and executioner.

It's up to you at what level you think you can justify your expenses (rigorously for HMRC to accept)

dazza.mk

CupcakeLisa wrote: »

i have just registered today with hmrc, started mystery shopping at xmas. When will i need to complete a tax return? next year?

do i need to break down my exprenses or can I lump them all together? Also i dont drive so im assuming i claim my bus travel as an expense, do i need recipts and if i done more than one job in a day do i count the bus just once or for every job?

You'll need to complete a return for 2011/2012 final deadline is 31/1/2013.

You can claim the actual cost of bus travel once (not for each job), you can lump all your expenses together usually for reporting usually but need the backup should HMRC query it.

Lil_Me_2

dazza.mk wrote: »

You'll need to complete a return for 2011/2012 final deadline is 31/1/2013.

You can claim the actual cost of bus travel once (not for each job), you can lump all your expenses together usually for reporting usually but need the backup should HMRC query it.

But you can only claim bus travel if you make a special trip. So if you get the bus to go to work in town and happen to do a mystery shopping in your lunch break you can't claim the cost of the bus since you would have incurred the cost regardless.

teendude

misssarahleigh wrote: »

That's correct, with one small note.

If the fee for job is £10 and you need to spend £8/9 in store, although they don't call it a reimbursement only job that's pretty much what it is.

Look at it honestly. If you doing u'd job for free food or stuff pay the tax. E.g you spend £10 on a new perfume on a reimbursement only job. As you have to pay tax on the money technically it's cost you £2. Still a bargain.

If it's not something you want simple answer is not to do the job.

Thanks
It was 10pound fee with a fiver spend so I think I can argue that one was done for the fee

dazza.mk wrote: »

Theoretically, although its still not 100% cut and dry ie assume you've got a fee of £1 and reimbursement of £10 it is going to be hard to argue the the reimbursement was incidental. It's only cut and dry where HMRC have specified the rules (ie mileage rates etc). As if HMRC don't agree with your arguments (admittedly there are internal appeals processes but) they are judge, jury and executioner.

It's up to you at what level you think you can justify your expenses (rigorously for HMRC to accept)

Yep there is a certain other visit I'm going to have to go back and change how I've recorded it as the total reimbursement is more than the fee itself. I guess that way it is the food/drink I did it for


Thanks both of you!