Mystery Shopping Thread 23 *PLEASE READ THE OP FIRST**PLEASE NO CLIENT NAMES OR FEES

burnoutbabe

but then the whole no fee business can be considered not a trade, more of a hobby - ie not done with a view to profit.

So whilst you might say its not allowable expenditure, it may also be argued its not trading income either (the reimbursement).

How are travel reviewers taxed? I doubt its on the basis of the value of the holiday, it would be on the basis of the (small) amount of freelance income earned. even though most of them clearly do the job for the perks.

We need someone who has been investigated and has been found to be okay as a comparator really. so far its a case study of about one person I know who was investigated (over on the mystery shopper forum) but no one else.

Big_Graeme

burnoutbabe wrote: »

but then the whole no fee business can be considered not a trade, more of a hobby - ie not done with a view to profit.

So whilst you might say its not allowable expenditure, it may also be argued its not trading income either (the reimbursement).

Would it not be a case of benefit in kind?
You would benefit because you got a meal in payment for your report.

square-pants

burnoutbabe wrote: »

but then the whole no fee business can be considered not a trade, more of a hobby - ie not done with a view to profit.

So whilst you might say its not allowable expenditure, it may also be argued its not trading income either (the reimbursement).

How are travel reviewers taxed? I doubt its on the basis of the value of the holiday, it would be on the basis of the (small) amount of freelance income earned. even though most of them clearly do the job for the perks.

We need someone who has been investigated and has been found to be okay as a comparator really. so far its a case study of about one person I know who was investigated (over on the mystery shopper forum) but no one else.

This is an interesting point of view, but I'm not sure the "hobby" argument stands up.

You are trading your services for a "free" meal/product/hotel stay etc. You need to submit a report/assessment in return for your reimbursement. MS companies will tell you that it's your responsibility to register as self-employed so they are recognising that this is employment not a 'hobby'.

Saying that you are not doing the jobs to profit doesn't make sense, of course you are profiting - you are getting a free meal/product etc (profit doesn't have to mean cash). If you didn't want the free meal/product or you didn't deem it valuable, then you wouldn't take the job.

jen_br

burnoutbabe wrote: »

but then the whole no fee business can be considered not a trade, more of a hobby - ie not done with a view to profit.
Correct... these non fee paying jobs are more for the hobbiest just too many people don't realise... hence why certain companies actually say to you "You may keep the product or give it away for tax purposes"

So whilst you might say its not allowable expenditure, it may also be argued its not trading income either (the reimbursement).

How are travel reviewers taxed? I doubt its on the basis of the value of the holiday, it would be on the basis of the (small) amount of freelance income earned. even though most of them clearly do the job for the perks.
Travel reviewers are paid a salary and they are taxed on a benefit in kind just like car salesman pays company car tax.

We need someone who has been investigated and has been found to be okay as a comparator really. so far its a case study of about one person I know who was investigated (over on the mystery shopper forum) but no one else.

I was queried 2 years ago...and learned a lesson.... I wasn't found doing anything TOO wrong but thankfully I don't take a lot of reimbursement jobs... Unless I am staying away overnight for MS'in reasons I will then take a meal job.

whitelabel

burnoutbabe wrote: »

but then the whole no fee business can be considered not a trade, more of a hobby - ie not done with a view to profit.

So whilst you might say its not allowable expenditure, it may also be argued its not trading income either (the reimbursement).

How are travel reviewers taxed? I doubt its on the basis of the value of the holiday, it would be on the basis of the (small) amount of freelance income earned. even though most of them clearly do the job for the perks.

We need someone who has been investigated and has been found to be okay as a comparator really. so far its a case study of about one person I know who was investigated (over on the mystery shopper forum) but no one else.

travel reviewers are usually trained qualified journalists (who may well be freelance) but will be paid in £££ by the paper that prints the copy they write. Travel companies offer them free trips in the hope of a good review and exposure for their company /location.

they then pay tax on that income minus travel expenses to get there and other business expenses, the cost of the holiday does not come in to it and the amount they earn (not small) will be a contribution to their annual income they could not do without

Boredupnorth

whitelabel wrote: »

travel reviewers are usually trained qualified journalists (who may well be freelance) but will be paid in £££ by the paper that prints the copy they write. Travel companies offer them free trips in the hope of a good review and exposure for their company /location.

they then pay tax on that income minus travel expenses to get there and other business expenses, the cost of the holiday does not come in to it and the amount they earn (not small) will be a contribution to their annual income they could not do without

If what you say is right and they would not declare the holiday as a "benefit" then why would a free meal be any different?

superliss

While on the subject of tax. What would people suggest regarding eBay sales. Jewellery job that is reimbursement only, but tax is paid on eBay sales, so do you then have to pay tax on any profits left after that?

HappyMJ

superliss wrote: »

While on the subject of tax. What would people suggest regarding eBay sales. Jewellery job that is reimbursement only, but tax is paid on eBay sales, so do you then have to pay tax on any profits left after that?

It depends on your intentions. Did you buy the jewellery to sell as new on Ebay? (taxable).... Or did you wear it a few times then decide you didn't want it and sell it as second hand? (not taxable)

square-pants

superliss wrote: »

While on the subject of tax. What would people suggest regarding eBay sales. Jewellery job that is reimbursement only, but tax is paid on eBay sales, so do you then have to pay tax on any profits left after that?

Yes. You are only paying VAT on Ebay fees. You still need to pay income tax on your earnings.

Big_Graeme

superliss wrote: »

While on the subject of tax. What would people suggest regarding eBay sales. Jewellery job that is reimbursement only, but tax is paid on eBay sales, so do you then have to pay tax on any profits left after that?

If it was as a result of the MS for reimbursement only then you, you declare it for tax.