Mystery Shopping Thread 22 *PLEASE READ THE OP FIRST**PLEASE NO CLIENT NAMES OR FEES*

afm_2

Hello Everyone,

I am quite new to MSing and I am a bit confused about having to register as self-employed. I've done a mystery shop sometime ago but it didn't pay any fee (just reimbursed the cost) so I didn't register as self-employed for that since I wasn't receiving any money for it (can someone please confirm that I was right? ).

Today, I've done my first mystery shop that will pay a fee but, given the amount of jobs that I get to do, do I need to register as self-employed? In a year, I've done 2 jobs and one didn't pay. I am confused about this because, about 2 years ago, I've received a cheque from one of these survey's website for £20. By then, I had read here that I had to register as self-employed but I called HMRC and they told me that, as long as it wasn't a regular income, I wouldn't need to register. For that reason, I didn't. This is what is making me confused. I don't think I'll get a regular income for ms so I don't know what to do.

Also, if I register, and only get to do a few jobs a year, do I have to send anything to HMRC every year telling them how much I've earned or something like that?

I am sorry if I am asking stupid questions but this is the third time I look into this and I find myself lost without knowing what to do. If things get too complicated, I am afraid I'll do something wrong an lose more than what I've earned.

Any help is very much appreciated!
Thank you!

Drea

Anyone else having trouble getting on RA website?

Boredupnorth

Drea wrote: »

Anyone else having trouble getting on RA website?

Its been down since Friday night for me

Drea

Boredupnorth wrote: »

Its been down since Friday night for me

Really annoying, they emailed about a shop I'd like to do but can't get on

Trevor64_2

With the GfK share jobs self employment needn't be a barrier since you just tell them you are employed. Use your last paye employer. you aren't actually signing up so it makes no difference.
Ironically I am employed on a PAYE basis for GfK field marketing and just do mystery shopping for them now and then.
I done a shares job on friday and used my former employer (Mountain bookies) to cover off the employment bit. They didn't bother with a credit check either.

Lil_Me_2

afm wrote: »

Hello Everyone,

Welcome!!

afm wrote: »

I am quite new to MSing and I am a bit confused about having to register as self-employed. I've done a mystery shop sometime ago but it didn't pay any fee (just reimbursed the cost) so I didn't register as self-employed for that since I wasn't receiving any money for it (can someone please confirm that I was right? ).

Unfortunately not, you still received money in the form of a reimbursement and as soon as you accepted any jobs you should have registered as self employed with HMRC. It's very very simple, and you can find the details on the first post of this thread of how to do it.

afm wrote: »

Today, I've done my first mystery shop that will pay a fee but, given the amount of jobs that I get to do, do I need to register as self-employed? In a year, I've done 2 jobs and one didn't pay.

Yes you do need to. When you sign up to the companies you will see in their terms and conditions that you're responsible for your own tax etc and that they consider you to be kind of a contractor that they call on when they have work.

Since the aim of being a mystery shopper is to make money on your business (your business being yourself) taking reimbursement jobs as seen as being paid in products and therefore you should declare the income from that too. Assuming you have a full time job as well and pay tax in that then you'll only pay tax on the profit of the job.

For reimbursement jobs you'd be looking at the following -

Income = money in from the company (reimbursement)
Expenses = money you had to pay out in order to perform the job (mileage, printing, parking etc)
Profit = income - expenses

Now the difference with fee paying companies is that the fee is the reason you do the job, the reimbursement and products are 'incidental benefits' and this is what is recognised by HMRC. If questioned you only ever take jobs to make money, and not for free stuff :cool:

Income = money in from the company (fee and reimbursement)
Expenses = money you had to pay out in order to perform the job (purchasing the products as specified in the brief, mileage, printing, parking etc)
Profit = income - expenses

afm wrote: »

I am confused about this because, about 2 years ago, I've received a cheque from one of these survey's website for £20. By then, I had read here that I had to register as self-employed but I called HMRC and they told me that, as long as it wasn't a regular income, I wouldn't need to register. For that reason, I didn't. This is what is making me confused. I don't think I'll get a regular income for ms so I don't know what to do.

Also, if I register, and only get to do a few jobs a year, do I have to send anything to HMRC every year telling them how much I've earned or something like that?

Surveys are a little different, however the money making power of MSing is significantly higher and as such HMRC will be interested, even if you're only making a small amount at the moment.

When you register as self employed you have to fill in a tax return every year. It's very easy to do online, and takes maybe 30 minutes as long as you keep your 'books' (aka spreadsheet) up to date. You just need to fill in your personal details, information about your employers and then add on your self employed work. All it asks for is the total income to your business (from every job) and the total expenses (from every job) so just 2 numbers. It will then work out how much profit you've made.

Simples!

afm wrote: »

I am sorry if I am asking stupid questions but this is the third time I look into this and I find myself lost without knowing what to do. If things get too complicated, I am afraid I'll do something wrong an lose more than what I've earned.

Any help is very much appreciated!
Thank you!

So in summary, you need to register as self employed now(!), start keeping a spreadsheet of all the work you do incl income and expenses. Remembering that there is no such thing as a free meal, it's still taxable! And then in April this year you'll be asked to fill in a self assessment tax return, which will be due by Jan 31st 2013, that will be for any work you did from 5th April 2011 - 4th April 2012.

If this all seems like too much effort then I'm afraid mystery shopping isn't for you. It's not a get rich quick scheme or a way of getting free stuff. It's also not safe from HMRC, if they find out you've done work and not declared it you could be in more trouble.

burnoutbabe

to clarify, not everyone reports their profits like that for reimbursement only jobs, lots of people report it as NO profit, as the fee covers the cost of purchase.

there is no actual law on which way to treat it, so its up to you to read the guidance on what expensese are deductable and decide for yourself what to do.

as my jobs are part of a larger MS business, I take them to keep the client happy to give more work for me.

Or you could consider that taking reimbursement only jobs isn't actually working, same as if a client gave you a free meal in store if you filled in a survey after. that wouldn't be considered a trade/business either.

So register as self employed and every year just write what profit you made to HMRC. for £10 income, they will just adjust your tax code.

Boredupnorth

burnoutbabe wrote: »

to clarify, not everyone reports their profits like that for reimbursement only jobs, lots of people report it as NO profit, as the fee covers the cost of purchase.

there is no actual law on which way to treat it, so its up to you to read the guidance on what expensese are deductable and decide for yourself what to do.

as my jobs are part of a larger MS business, I take them to keep the client happy to give more work for me.

Or you could consider that taking reimbursement only jobs isn't actually working, same as if a client gave you a free meal in store if you filled in a survey after. that wouldn't be considered a trade/business either.

So register as self employed and every year just write what profit you made to HMRC. for £10 income, they will just adjust your tax code.

This has been discussed many times and this is another view of how to treat reimbursement only jobs. However, should you ever be audited you will need a strong argument to justify this stance and will be down to the inspector if he/she agrees, if they don't then you will be liable for the tax. The argument of "getting more work" would need to be proven and even then you will be deemed to have taken a benefit from the initial job so would still be liable. It's very dodgy ground in mine and my accountant's eyes.

Lil_Me_2

burnoutbabe wrote: »

to clarify, not everyone reports their profits like that for reimbursement only jobs, lots of people report it as NO profit, as the fee covers the cost of purchase.

there is no actual law on which way to treat it, so its up to you to read the guidance on what expensese are deductable and decide for yourself what to do.

as my jobs are part of a larger MS business, I take them to keep the client happy to give more work for me.

Or you could consider that taking reimbursement only jobs isn't actually working, same as if a client gave you a free meal in store if you filled in a survey after. that wouldn't be considered a trade/business either.

So register as self employed and every year just write what profit you made to HMRC. for £10 income, they will just adjust your tax code.

To clarify, misssarahleigh contact HMRC and they confirmed that what I said is correct, so please do not try and confuse things and encourage people to break the law by tax avoidance.

http://forums.moneysavingexpert.com/showpost.php?p=47293809&postcount=3814

The only thing that is possible is what you've said about the company giving you more paid work, but is not the case with this poster and therefore there was no need to mention it.

burnoutbabe

that is NOT case law though? its just the word of one HMRC inspector.

I am not in any way encouraging tax avoidance. there is no defintive guidance on the treatment of this income. If you could provide an actual tax publication, that would be helpful as I have not seen one.

I used to work in corporate tax compliance so i do know about how tax law is established (through direct statutes and through case law)

I am just providing the alternate view, which many mystery shoppers also follow and have followed for many years. Even the post you link to says it is open to interpretation and was about people taking jobs to LOWER their taxable income (ie loss making jobs), which is fair enough.