Survey sites etc- taxes

pweggie

Totally agree with Flyonthewall. Anyone who thinks that taking surveys is a "job" is deluded. Would you really actually work for such a pittance? The money/vouchers/points you get for taking surveys is offered as a reward - not a wage - for your time. Even survey companies themselves will tell you this.

Cybi-Ping

Taken from this site (http://www.moneysavingexpert.com/family/make-money-surveys):

DON'T forget tax

Before you start counting the dosh, don't forget some of it belongs to the taxman. For most people it'll be around a third. Survey earnings are unlikely to push non-taxpayers over the threshold, however.

As any sources of extra income need to be declared; ensure you're upfront with HM Revenue and Customs. Survey earnings are self-employed income, which means registering with the HMRC Helpline for the Newly Self Employed on 08459 15 45 15 by the end of the third calendar month after starting – or facing an automatic £100 penalty.

For full information, read HMRC's self-employment leaflet.

antrobus

Cybi-Ping wrote: »

Taken from this site (http://www.moneysavingexpert.com/family/make-money-surveys):

Correct link -
http://www.moneysavingexpert.com/family/make-money-surveys

It is correct when it states that "sources of extra income need to be declared", but incorrect when it refers to the "automatic £100 penalty" for non-registration as self-employed. That was abolished a few years ago.

Technically you should declare all your income. But £50 here and there from a survey site is below HMRC's threshold of interest. If they wanted to, they could demand the information from the survey sites and issue thousands of tax bills. But so far they haven't done that.

googler

pweggie wrote: »

Totally agree with Flyonthewall. Anyone who thinks that taking surveys is a "job" is deluded. Would you really actually work for such a pittance? The money/vouchers/points you get for taking surveys is offered as a reward - not a wage - for your time. Even survey companies themselves will tell you this.

So if I refurbished a neighbour's bathroom, decorated another's lounge, and landscaped the garden for a third, and they gave me £100 each as a 'reward', and not a wage, I wouldn't have to declare it as taxable income?

Nobody is saying it's a 'job', and whether it's a pittance or not is irrelevant.

I'm saying that anyone doing this is acting in a self-employed capacity. They're providing a service to the survey company which, if they they are paid real money in return for this, whether through Paypal, cheque or whatever, is income that could be taxable, depending on the earner's total income, and may need to be declared on a tax return.

googler

antrobus wrote: »

Technically you should declare all your income. But £50 here and there from a survey site is below HMRC's threshold of interest. If they wanted to, they could demand the information from the survey sites and issue thousands of tax bills. But so far they haven't done that.

So are you presuming it's below their threshold of interest on the basis of their inaction, or do you have some concrete statement from them that they're not interested? Something on their website?

droopsnoot

These would come under the heading of "casual earnings, commission or freelance income" in the HMRC Self-assessment, I would think. There used to be something on the form about not listing anything below £10, but I can't find in the sa150 guide on the HMRC website. I have read (here and elsewhere) that if you have a small additional income that is not catered for in your usual PAYE, a single call to the tax office to declare it can be all that is required - you may not need to complete a self-assessment form.

Browntoa

click spam button on the Kudosnetwork spammer

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pweggie

googler wrote: »

So if I refurbished a neighbour's bathroom, decorated another's lounge, and landscaped the garden for a third, and they gave me £100 each as a 'reward', and not a wage, I wouldn't have to declare it as taxable income?

Nobody is saying it's a 'job', and whether it's a pittance or not is irrelevant.

I'm saying that anyone doing this is acting in a self-employed capacity. They're providing a service to the survey company which, if they they are paid real money in return for this, whether through Paypal, cheque or whatever, is income that could be taxable, depending on the earner's total income, and may need to be declared on a tax return.

Well, you'd have to be pretty silly to take on refurbishment work for a mere "reward" - wouldn't you? Similarly, you'd have to be mad to "work" for 88p for a 25 minute survey, for example!

The fact of the matter is this: market research companies are not employing those who take their surveys. Nor are we, the survey taker, providing a service to the market research company. We are simply giving them our demographic information (often under the guise of our being able to to give our opinion) and in return we are allowing them to expose us to advertising, and to use our information to report back to their clients. No "work" involved. No "service" provided. Just a market research excercise, the like of which has been carried out for decades (albeit initially- and in pre-internet times - it was carried out by the clipboard brigade on the high street!) and with an incentive offered for taking part - INCENTIVE, not wage, not earnings, not self-employed earnings either.

Under HMRC's rules, survey incentives are more likely to be viewed as gifted monies than earnings. If it were earnings, you would have to raise an invoice with the survey company each time you wanted to cash out; you would also have to issue them with a receipt once they'd paid you. On top of all that you would need extensive accounts certified by an accountant before submitting to HMRC. Now, all this will cost you at least 15 times what you've "earned" on survey sites, and HMRC are not interested. I check every year and only this year they've told me not to bother asking again as "market research incentives are NOT taxable earnings, or earnings of any nature recognised by HMRC" - their words, not mine. In fact, I got the feeling they were pretty fed up with this self-employed-survey-taking nonsense. Off the record I was told by HMRC that the "working from home taking paid online surveys" is merely a ploy to draw people in.

Flyonthewall

googler wrote: »

So if I refurbished a neighbour's bathroom, decorated another's lounge, and landscaped the garden for a third, and they gave me £100 each as a 'reward', and not a wage, I wouldn't have to declare it as taxable income?

Nobody is saying it's a 'job', and whether it's a pittance or not is irrelevant.

I'm saying that anyone doing this is acting in a self-employed capacity. They're providing a service to the survey company which, if they they are paid real money in return for this, whether through Paypal, cheque or whatever, is income that could be taxable, depending on the earner's total income, and may need to be declared on a tax return.

If you did them as a one off for a friend/neighbour and after they gave you £100 as a reward or thankyou then technically it was never a job. It was cash in hand as a thanks for helping them out. You're not likely to have discussed that amount first and possibly not have expected anything back.

Chances are most people wouldn't think should I become self employed because I helped out a neighbour and they gave me a few quid to say thanks. You'd think aww, how nice of them to give me something for helping them out.

If you were constantly doing things like that and expecting to be paid, that's different.

For helping people out, what about pocket money? Should that be taxed too? Is that income? Often parents make their kids do odd chores (jobs?) and in return, as a reward, they give them money. Now, the key word there is a reward - to me, that's all it is. But if that's worded the same as the survey sites and that money is taxable in your opinion then what about pocket money?

As for surveys, what about when items or gift cards/vouchers are gained as a reward? I could do the exact same thing and get either an item or money. Why should I be taxed for one and not another when I did the exact same thing and was told that it was a reward?

Cybi-Ping

pweggie wrote: »

HMRC are not interested. I check every year and only this year they've told me not to bother asking again as "market research incentives are NOT taxable earnings, or earnings of any nature recognised by HMRC" - their words, not mine.

Have you ever managed to get that in writing?