Mystery Shopping Thread 24 *PLEASE READ THE OP FIRST**PLEASE NO CLIENT NAMES OR FEES

Big_Graeme

littleange wrote: »

If reimbursement only job reimbursements have to be counted as income, surely those hours spent earning that income would be legitimate working hours?

No, tax credits would expect you to be working for the minimum wage at least to count them as productive hours, the OP is manipulating his tax/work hours position to obtain the maximum tax credit and not doing this as a legitimate job.

Despite being told many time the way he was calculating reimbursement only jobs was wrong he still maintains he is right, I have spoken to a few people at HMRC on the income tax side and the way he does it would be classed as TAX EVASION by HMRC.

littleange

Big_Graeme wrote: »

No, tax credits would expect you to be working for the minimum wage at least to count them as productive hours, the OP is manipulating his tax/work hours position to obtain the maximum tax credit and not doing this as a legitimate job.

That doesn't sound right to me, I know quite a few self employed people who don't make minimum wage, especially when they are just starting out. I rarely do with mystery shopping if I factor in the travelling time.

If you're self-employed

Put down the number of hours you normally spend working in your business, either on work billed to the client or related activity, for example:

• trips to wholesalers and retailers
• visits to potential clients
• time spent on advertising
• cleaning the business premises
• cleaning a vehicle used as part of the business, for example a taxi
• book-keeping
• research work

If you work from home, include time spent travelling to see customers.

You wouldn't really be making minimum wage while cleaning, visiting wholesalers, etc

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/work-out-hours.htm

Big_Graeme

littleange wrote: »

You wouldn't really be making minimum wage while cleaning, visiting wholesalers, etc

No but you wouldn't be claiming to work the bare minimum hours required for tax credits either.

HappyMJ

Big_Graeme wrote: »

No, tax credits would expect you to be working for the minimum wage at least to count them as productive hours, the OP is manipulating his tax/work hours position to obtain the maximum tax credit and not doing this as a legitimate job.

Despite being told many time the way he was calculating reimbursement only jobs was wrong he still maintains he is right, I have spoken to a few people at HMRC on the income tax side and the way he does it would be classed as TAX EVASION by HMRC.

I have taken all my invoices and receipts to the HMRC investigation including the mileage diary along with letters from my accountant (which I got after the end of that tax year and ended up being free for me as the accountant's expense was a taxable deduction increasing my tax credits and housing benefit claim by the same amount) and the only thing they told me I couldn't claim was the mileage to go to/from the reimbursement only jobs therefore I have been told I have to pay an extra £60 or so for that tax year. I would recommend you do the same.

I also have a part time job and this work enabled my average hours to exceed 30 every week.

littleange

Big_Graeme wrote: »

No but you wouldn't be claiming to work the bare minimum hours required for tax credits either.

Well that's beside the point, my point was if time cleaning counts, time doing reimbursement only jobs accounted for as income must count as legitimate working hours.

It does not mention minimum wage any where, minimum wage never usually comes into anything to do with self employment, so why should it for tax credits.

weeg

I was investigated by the tax credits people last year - I flagged it up on the MS thread at the time as a heads up for others. I expect to get asked again. I was told that any time spent in the expection of earning income was allowable, but not in the hope of earning income. So I was allowed hours for both networking groups and for looking for MS work.

I declare all expenses only jobs as taxable income, minus mileage and printing.

I guess with work like this it all depends who you get in the tax office.

dazza.mk

HappyMJ wrote: »

which I got after the end of that tax year and ended up being free for me as the accountant's expense was a taxable deduction increasing my tax credits and housing benefit claim by the same amount

Careful HappyMJ, you're close to handing out dodgy advice again, the majority of accountants fees are deductible but not all (specifically I'm thinking of actually completing a tax return on your behalf rather than doing accounts)

HeavensDevil

The awkward moment when you have to decide whether or not to put a moustache as a descriptive feature of a MOS who was female...

N.I.M

HeavensDevil wrote: »

The awkward moment when you have to decide whether or not to put a moustache as a descriptive feature of a MOS who was female...

And I lolled. That bad?

HeavensDevil

N.I.M wrote: »

And I lolled. That bad?

It actually was! As in, if I saw it on a male MOS, I'd add it to the description without a second thought.