Additional income and tax - so confusing!

bsclp118

Hi,

I'm trying to make some additional income through surveys and streetspotr and various other Apps.

I'm fairly sure that its OK to sell things on Ebay without declaring tax as everything I sell are things I own and that I make a loss on. But now that I am thinking of trying to make a few £'s (and lets face it, filling in surveys is never going to make us rich!), I was wondering where I stand from a tax view point? I'm not sure its worth the effort if I have to start filling in tax returns and such just to earn a couple of extra quid?

I've looked around the forums and the website and I can't find any clear advice on this, can anyone help or point me in the right direction? I've looked at the HMRC website but well, it's about as clear as mud! :mad:


p.s. I have a full time job that I pay tax on through my employer.

HappyMJ

Filling in surveys is a hobby not a profession so no tax due on that.

Ebay you don't have to make a loss to not pay tax. If you buy something from Ebay for £1 use it once at sell it for £5 making £4 profit then you don't pay tax as you're selling used domestic goods. If you never used it traded 100 of them then that's considered trading and you pay tax on the profit.

supersaverkerry

I am pretty sure that I have signed up to survey places and they have had clauses saying I am responsible for my own tax and NI.


If you go to the boost your income board they will be better able to help- I asked on there are was told I do have to pay tax on surveys and as such I do fill out tax returns. It is just an evening hobby but make several hundred a year from it and always declare it to HMRC.

bsclp118

Happy MJ - the things I am selling I have bought for my own personal use and I am selling at a much lower price so I think I should be OK on that front. Plus I am selling for very small amounts - like maybe £50 in the last year.

I shouldn't think I have time to make that much from it - well done on several hundred a year though supersaverkerry! I think for me if I had to pay tax it wouldn't be worth it, I'll have a look on the boostyourincome board though, thanks :-)

HappyMJ

supersaverkerry wrote: »

I am pretty sure that I have signed up to survey places and they have had clauses saying I am responsible for my own tax and NI.


If you go to the boost your income board they will be better able to help- I asked on there are was told I do have to pay tax on surveys and as such I do fill out tax returns. It is just an evening hobby but make several hundred a year from it and always declare it to HMRC.

Most people on here err on the side of caution and say that anything earned should have tax payable on it but as you say yourself you do it as a hobby and therefore no tax is due. There isn't tax on hobbies as most hobbies make a loss and the HMRC doesn't want taxpayers taking advantage of being able to carry losses forward to future years. If you do declare your income you have several expenses. The electricity used to power the broadband router and the computer. The cost of the broadband connection and the telephone required to have one and the computer itself just to name a few. Maybe even the desk you are using to complete the surveys. As surveys generally make very little you could offset quite a lot of expenses against the income and always make a loss (on paper).

The HMRC applies a business test to your activities to determine whether it's a business or hobby. Of course the best place to get correct advice is the HMRC but as the OP says it's as clear as mud.

In my opinion completing surveys does not amount to a trade, profession or vocation so no tax is due. You don't advertise yourself as someone that completes surveys, you don't need qualifications and there is no defined career path. Anyway if you do declare it the tax and NI due is so small it's insignificant and HMRC really don't bother amount tiny amounts they go after the much bigger ones. They aren't going to ask you if you've declared tax on a £5 gift card for completing a survey.

bsclp118

Thanks MJ, I feel a lot better about this now :-)

I have looked at the HMRC website and filled in the "do you need to submit a tax return self assessment". One of the key questions was:
6 Did you have any other income you need to report?

You need to report:

• income of £2,500 or more that hasn’t been taxed, eg from savings, investments, tips, commission
• income from savings and investments that has been taxed and was £10,000 or more before you paid tax on it

As I will be making nowhere even near £2500, I think I should be fine. I pay tax on my salary... this is not my main source or income by any stretch of the imagination. I guess the HMRC have bigger fish to fry as it were.