Mystery shopping thread 26 *please read the op first**please no client names or fees

serendipity2706

If you are just trying it out, you are allowed to earn £1000 before it is regarded as a 'job'.  At current payrates you can do a lot of assignments before earning that. Remember, this figure is after expenses, mileage etc.
Also, it doesn't matter where the pay comes from, if you live in UK it's all accountable.

[Deleted User]

Would it mean that  up to  £1000 could be paid via PayPal for Prolific Studies and no tax would have to be paid, serendipity2706?

I have not earned that amount but would up to £1000 be O.K. in the 'normal' tax year from April one year to April the next?

Then is there a similar 'allowance' for the following year (up to £1000) or, once the £1000 has been reached in one tax year, would everything paid from Prolific through PayPal the next year all be taxable?   When the studies are available I really enjoy participating but, until your post, I had never thought of it as ever counting as a job. 

If the time ever comes when I get close to £1000 from Prolific I would probably have to give up.  I have a low limited/fixed income but I do pay tax at the basic rate - it is deducted from my pension before I receive it. Like most people no specific expense is involved completing the studies - apart from time on my laptop and waiting/hoping for studies with spaces to become available.

Thank you if you are able to explain a bit, please.

Crimson

serendipity2706

As I understand it, any self employed work, nett after expenses, counts towards the £1000 yearly allowance. I claim mine for the tax year, April to April.
Previously, pre Covid, I did a lot more work so had to complete a tax return. Last year, I only worked part of the year, so didn't earn £1000. I had no tax return to fill in and no more tax to pay.

I do already pay tax on my superannuation at source.

I don't know who Prolific Studies are. Is it actually mystery shopping, or something else?  It sounds more like a focus group or something.

[Deleted User]

serendipity2706 said:

As I understand it, any self employed work, nett after expenses, counts towards the £1000 yearly allowance. I claim mine for the tax year, April to April.
Previously, pre Covid, I did a lot more work so had to complete a tax return. Last year, I only worked part of the year, so didn't earn £1000. I had no tax return to fill in and no more tax to pay.

I do already pay tax on my superannuation at source.

I don't know who Prolific Studies are. Is it actually mystery shopping, or something else?  It sounds more like a focus group or something.

Thanks very much for replying.  Prolific is where Researchers find participants to engage in research studies usually for a small remuneration - but it all adds up over time.  I'm not sure about other participants but I don't  think many earn anything like £1,000 in a year - probably much less.

The research studies vary and cover a very wide range of many, some really interesting, topics.  A short study may pay under 20 pence and longer ones maybe £5 or more.  I heard that they have a waiting list of people wishing to join at present so it is popular.

Although the remuneration, paid via PayPal is welcome, it really is very interesting - a bit like a hobby with a bonus.  I'm not good at explaining and this is just my understanding of it.  As I mentioned, I have never considered it to be anything like a job.

Crimson

serendipity2706

Ah, that sounds like a focus group, or market research.
This is different to mystery shopping.
I'd not think tax would be payable for this.

Doc_N

serendipity2706 said:

Ah, that sounds like a focus group, or market research.
This is different to mystery shopping.
I'd not think tax would be payable for this.

I'm afraid it is, and HMRC will confirm this.

Do I have to pay tax?

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It's important to note that participants are not employees of Prolific - they are independent contractors so we do not report the Rewards they make to a revenue service (e.g. Inland Revenue in the UK). We simply act as the commercial agent to negotiate and/or conclude contracts between researchers and participants.

We pay Rewards to participants (via PayPal) from the amount paid to us by the researcher for each Study which includes the fee charged by us to the Researcher for providing our Service.

All Rewards earned through participants' use of the Service may constitute income for which they have personal tax liabilities which may be notifiable to the relevant revenue service. They warrant and undertake that they will pay any applicable taxes on all income derived from Rewards. Participants are able to download a full list of submissions completed and the Reward earned for each if they require it for any tax return.

[Deleted User]

Thanks for the information, Doc_N.  It is not what I expected but it's  better to know about it before too long.

I appreciate  the details, thanks.  

Crimson

steviebabes

The £1000 allowable by HMRC is net income, not after expenses etc.

Doc_N

steviebabes said:

The £1000 allowable by HMRC is net income, not after expenses etc.

Gross income, not net income. As you say, before any deduction of expenses:

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

newbie8

The £1000 net income.
is the £1000 part of income tax or does this sit in another tax bracket?

if it’s income tax.. the info many have given.. £1000 net does that mean if someone has income and already are tax payers (20/40%/50%). Anything earnt from mystery shopping means will be taxable?