Is receiving payment in food self-employment?

monathika

This might be a weird question but I'm struggling at the moment and need a little bit of extra help. If I receive payment for a service in the form of food instead of money, do I count as being self-employed? What about if it's a gift card from a supermarket?

I don't think I can cope with being self-employed.

ETA: As it would be a mobile service, what about if the payment is also taken as oyster card top ups?

paddyrg

Yes, it's self-employment with your receiving the cash value of those goods, and may also land the employer in an awkward position regarding tax/NI.

Alas, there's a reason people aren't all paid in Amazon gift cards!

Pennywise

Receiving food instead of money doesn't necessarily make your self employed. It's regarded as cash for tax purposes, so you could be regarded as employed. Regardless of how you are paid, the question of employment versus self employment is decided by HMRC's employment status indicator. You and/or your "employer" could well end up with taxes, fines and penalties to pay. Someone, either you or your employer has to pay tax/nic if due. Paying in any form other than cash doesn't make the tax go away!

HappyMJ

monathika wrote: »

This might be a weird question but I'm struggling at the moment and need a little bit of extra help. If I receive payment for a service in the form of food instead of money, do I count as being self-employed? What about if it's a gift card from a supermarket?

I don't think I can cope with being self-employed.

ETA: As it would be a mobile service, what about if the payment is also taken as oyster card top ups?

An interesting question rather than weird.

Some people do get food provided with their jobs. Sometimes meals such as breakfast or dinner are provided and the employee is expected to pay for them. These jobs are usually live in domestic jobs. The employer can deduct an amount from an employees wages for each day that food is provided even if the employee isn't working that day. That could bring the cash pay down to zero with all the other deductions. The employer has to pay tax and NI if applicable but the allowances the employer can deduct for meals provided are very small and very unlikely to cause a zero cash payment even if the employee only worked a couple of shifts per week.

An employer can provide an employee with an oyster card to get to a temporary workplace for up to 2 years. That is a valid business expense.

Gift card from supermarket...very unlikely but it is possible. I do get paid in Amazon gift cards from some clients as that's how they do it. That's not employment though that's just filling in some surveys....i.e self employment. I have to declare the work done and pay tax on the gross value of the Amazon gift card.

If I get an £20 Amazon gift card for doing work I have to reach into my own pocket and pull out enough to cover basic rate tax of the value of that being £4 to put aside to pay to the HMRC when the time comes.

DomRavioli

Doing work for reward classes you as either employed or self employed. HMRC will be able to distinguish which and they have some great info on their site, but yes, food, gift cards, travel cards, tops ups, any kind of reward is classed as income for those purposes.

The self employment online bit now is super easy, just keep a record of what you get paid (regardless of how it happens, it has a monetary value).

antrobus

monathika wrote: »

This might be a weird question but I'm struggling at the moment and need a little bit of extra help. If I receive payment for a service in the form of food instead of money, do I count as being self-employed? What about if it's a gift card from a supermarket?

I don't think I can cope with being self-employed.

ETA: As it would be a mobile service, what about if the payment is also taken as oyster card top ups?

I think you'd have to provide more detail regarding the service you are providing in order to get a proper answer. For example, if you were a mystery dinner and your reward consisted of getting the meal paid for, there would be no tax implications. It depends.

The good news would be that the new micro-entrepeneur relief due to start in April 2017 will mean that you can stop worrying about it unless you are talking about more than £1k a year.

antrobus

HappyMJ wrote: »

...... I do get paid in Amazon gift cards from some clients as that's how they do it. That's not employment though that's just filling in some surveys....i.e self employment. I have to declare the work done and pay tax on the gross value of the Amazon gift card.

If I get an £20 Amazon gift card for doing work I have to reach into my own pocket and pull out enough to cover basic rate tax of the value of that being £4 to put aside to pay to the HMRC when the time comes.

Interesting. You are quite possibly the only person in the UK who declares their survey income for tax purposes.:)

Usually what I do is point out that certain expenses would be allowable against such income, such as; a percentage of your broadband bill, and business use of home at £4 per week. That normally covers it.

In any event, you too will benefit from the new micro-entrepeneur relief, and can forget all about that malarkey come next April.:)

undaunted

Who will you be offering what service & to what extent?


If, for example you're talking about the occasional bit of help to a friend or relative & they in turn decide to offer you a meal / gift card or whatever then I wouldn't think anyone would reasonably consider this to be either employed or self employed.


Even if you were considered to be in some form of employment would it be above or below tax thresholds?


It seems unlikely to me that this is the case given the nature of your post but just for clarity: if on the other hand you are talking of multiple clients, significant income on a regular basis then, as others have already said you can't just evade any tax liabilities or reporting by taking payment in some other form than money.


I'm not sure to what extent you mean struggling but if appropriate have you investigated other possible means of help - eg that you are getting any benefits or tax credits you may be entitled to, food banks / charities etc?