Maximising income - Mystery Shopping? Surveys? (Part Two)

Timmne

PM'd

More typing to fill the minimum post.... la la la la etc

TractorGirl327

tinatony1 wrote: »

Is anyone else having problems getting onto the GFK site today?

I emailed them about it and apparantly they are having a problem with the site today. They are gonna email me when it's rectified.

mouche

Hi all,

I've been reading through this thread and it's really helpful. I think I've found the answers to my questions in the posts but am just restating what I've learnt here so that you lovely people can jump on me if I've got something wrong.

Background: I am full-time employed and paying tax and NI through work. To supplement my income (we live in London and are struggling to save a deposit on a flat) I have been doing mystery shopping jobs for GAP (mostly the chicken and clown ones) since 13th July. I did my first one for GRG this month. In 3 months - if I count what I haven't been paid yet for shops I've done already and I add in reimbursements, I've made about £100 so I'm definitely not making a fortune, but 'every little helps'.

[SIZE=+0]Problem: I did not know I need to pay tax on MS income. I have just found out on this board that I will have to pay a £100 fine if I do not register for tax (?) within 3 months. Well, my 3 months is up on the 13th, which is next week, so I guess I need to get a move on! From what I understand, I have to call Inland Revenue on 08459154515 and register as self-employed. Then I have to send in a request for Certificate of Small Earnings Exception. Then, sometime before 30th September 2009, I have to file my tax returns.[/SIZE]

Questions:
1) Is it enough to register as self employed before 3 months or do I need to get the cert as well?
2) How does one actually file a tax return in this country? It's very different in India. Is it sent to you? Can you file it online?
3) What percentage of tax will be decucted? The same as for my day job? And if my MS income pushes me over the edge into the next tax bracket, do I pay the higher tax rate?
4) What if my annual MS income is less than £4k but high enough to put me in the next tax bracket? Do I pay tax at a higher rate because my total income is in that bracket? Or do I pay the normal tax on my day job and none at all on MS income because it's below the £4k threshold?
5) The first few shops I took fairly lightly in terms of keeping the receipts and paperwork - especially after I got paid for them. I have kept all the paperwork for the last few but will the missing earlier ones be a problem?
6) While calculating profit from a mystery shop, is the following example correct?

Looking for the job online cost: 50p
Printing costs: 6p per sheet * 6 sheets - 36p
Transport cost: £0 (because using travelcard which I buy anyway) Actual meal cost: £3.50
Meal reimbursement: £4
Shop fee: £4

Total costs: £4.36
Total income: £ 8

Taxable profit: £3.64


Sorry for so many questions but maybe it will help other newbies as well. I do hope someone will be able to help me.

Timmne

mouche wrote: »

Hi all,
Questions:

1) Is it enough to register as self employed before 3 months or do I need to get the cert as well? Yes you do, use the forms on page 1 of this thread - one for registration (although I'd call them as there's a huge backlog at the minute) and one for the class 2 NI exception - as long as you're not going to earn over the threshold it shouldn't matter that you're a little delayed in applying for it.

2) How does one actually file a tax return in this country? It's very different in India. Is it sent to you? Can you file it online? They will send you one as part of registering you as self employed. This will arrive some time in April next year - if you need any help filling it in, ask us lot nearer the time! (And yes, you can do it online. Instructions will be sent to you with the return and information's also online at www.hmrc.gov.uk)

3) What percentage of tax will be decucted? The same as for my day job? And if my MS income pushes me over the edge into the next tax bracket, do I pay the higher tax rate? If you get the tax return for 05/04/08 in to HMRC by 30th September next year they'll calculate your tax for you. Depending on how close to the 40% band you are, you might get taxed at 40% but then you might not!

4) What if my annual MS income is less than £4k but high enough to put me in the next tax bracket? Do I pay tax at a higher rate because my total income is in that bracket? Or do I pay the normal tax on my day job and none at all on MS income because it's below the £4k threshold? Yes, you will pay at the higher rate for any income that falls into that bracket - if only £1 falls into the 40% bracket you'll only pay 40p at the higher rate....

5) The first few shops I took fairly lightly in terms of keeping the receipts and paperwork - especially after I got paid for them. I have kept all the paperwork for the last few but will the missing earlier ones be a problem? No as long as what you're claiming for is believable - not things that cost more than the fee you're receiving for it, for example.

6) While calculating profit from a mystery shop, is the following example correct?

Looking for the job online cost: 50p
Printing costs: 6p per sheet * 6 sheets - 36p
Transport cost: £0 (because using travelcard which I buy anyway) Actual meal cost: £3.50
Meal reimbursement: £4
Shop fee: £4

Total costs: £4.36
Total income: £ 8

Taxable profit: £3.64

That's fine but the 50p for looking for the job is not a cost to you - as a sole trader you can't claim a salary against profit, which is effectively what the 50p's doing.

Hope this lot helps!

mouche

You are just brilliant Timmne!!! Thank you so much!!! I'll call IR now and send off for the certificate on Monday - though with the Royal Mail strike, who knows how long it will take to come through.

Thanks again.

Sarahsaver

Surely you are not eligible for 'small earnings exemption' (for NI contributions) if you also work full time ???

Timmne

Yep - your employment is a separate income to your self employment - you pay class 2 NI on self employment (along with class 4 at the right profit levels) and class 1 and 1a on employment....

kitchen_buff

I used to be a Wickes design consultant, I always got very good if not excellent mystery shopper reports on me. However I hate them and they do not reflect true life situations, for example.
I was marked down for not giving a supposed conservatory customer a printed out quote (this is part of the criteria for the marking). I explained to the supposed customer that the Vision computer system was down and I could not print the quotation, I offered to post it later when the computer came back up. Hence to say I got marked down for not giving the quote. I lost £25 quid in vouchers, Also this shopper booked an appointment for 3pm on a Sunday (a very busy day in Wickes), she came in at 11pm when I was with another appointment, she was not happy that she could not be seen until after I had finished with a proper customer. So in my opinion they can all go to hell!!!.

Timmne

....you mean "we" can all go to hell?!!

Nice!

kitchen_buff

No, just the snotty up themselves ones who think they are something special like police wannabes.
You sound ok though