Surveys and tax

alwaysbrassic

Hi
After reading on here I was considering starting to join survey sites to get some extra money. The sites I was looking at pay out in vouchers. Do you have to declare this to the tax man even though it's vouchers and not cash?
I'm not sure if it will be worth all the hassle of declaring income etc for £50 vouchers?

antrobus

Technically speaking, I suspect that the answer would be 'yes'. However if income received from survey sites was taxable, then you would be able to claim certain expenses such as business use of home and a proportion of your broadband fees, so the actual taxable amount would be less. In fact, it's perfectly possible that you might be making a taxable loss. So overall, it's probably not "worth all the hassle" and you can safely keep the vouchers/money without bothering HMRC.

ANGELFLOWER

I phoned the HMRC regarding this and was told that yes it did need to be declared, both cash and vouchers. It is true that you can claim allowances such as broadband etc against this and it may result in a loss/no profit if you don't do enough surveys. Regardless of whether you make a profit or a loss on paper, you still need to be registered with HMRC as you are 'earning money'. Better to be safe than sorry and pay what is owed. If you have another job and have already used up your tax allowance any other income is taxable if you make a profit, and HMRC will want to know about it.

If you do have another job you may be able to pay tax through your tax code by speaking to HMRC, otherwise you will need to register as Self Employed. I filled in my first tax form this year and it was easy enough so don't let this put you off.

Rather than deciding yourself that 'it would be too much hassle for HMRC' for you to fill in forms for a small amount, phone them and ask. If they say that they are not interested then take a name and record the time of the phone call, they record calls so you will have a comeback at a later date if necessary.

alwaysbrassic

alwaysbrassic wrote: »

Hi
After reading on here I was considering starting to join survey sites to get some extra money. The sites I was looking at pay out in vouchers. Do you have to declare this to the tax man even though it's vouchers and not cash?
I'm not sure if it will be worth all the hassle of declaring income etc for £50 vouchers?

to clarify i meant the hassle of even doing surveys!!!

alwaysbrassic

does this also count for cashback sites as I was going to join quidco?

Wondering if it is a nightmare recording everything, are the payouts really worth the time spent?

whitelabel

no cashback is effectively money off or a refund on a purchase rather than an income as it is your money paying out initially