Online surveys but not for cash…

ybrad7

Hi, I’m both a PAYE and self employed (side hustle)

I also do online surveys for cash, however, instead of cash if I decide to cash it out for a gift card instead, can this still be taxed?

obviously with cash you would declare it and get taxed accordingly, but can you declare gift cards? 

xylophone

Below seems relevant

https://inews.co.uk/inews-lifestyle/money/want-get-paid-opinion-earn-money-doing-online-surveys-261447

Those who make a bit of extra cash from online surveys are unlikely to have to worry about paying any tax on the earnings.

Britons can earn up to £1,000 a year from hobbies or interests without having to notify HM Revenue and Customs (HMRC), under a new tax relief introduced by the Government in April 2017.

If you make more than £1,000 in the tax year, you will need to register for a self-assessment tax return. But as long as your “hobby” income stays below £15,000, you will be able to complete a simplified sole trader return. This just has to show your income, expenses and profit or loss.

https://www.theaccountancy.co.uk/tax/do-i-need-to-pay-tax-on-my-hobby-side-business-13671.html#:~:text=HMRC introduced a tax free,income or even report it.

Jeremy535897

The £15,000 figure is too low. It is £85,000.

ybrad7

The first link is a good article, but doesn’t confirm if I’m paid in voucher it can be taxed, I will call HMRC and check with them to see if this is the case. 

Jeremy535897

It doesn't make any difference how you are paid.

silvercar

Jeremy535897 said:

It doesn't make any difference how you are paid.

Is that true if there is no cash option?

There are apps where you snap pictures of receipts and gain points. Sufficient points gained and you can change them for eg Amazon vouchers, no cash options. Should they be declared for tax. Given that you have to make purchases in order to get receipts in order to get vouchers, does the value of the vouchers count as income?

in the same way that taking part in Royal Mail surveys results in “gifts” of stamps. Is the value of the stamps taxable income? 

To take it to the extreme, using a nectar card in Sainsburys or a Clubcard in Tesco, yields a cashback on purchases, is that discount taxable? Is that different from using Quidco or tcb where you get cashback on purchases? Is the cashback earned or a discount? 

Genuinely curious.

jimmo

silvercar said:

Jeremy535897 said:

It doesn't make any difference how you are paid.

Is that true if there is no cash option?

The real question is whether the "voucher" can be exchanged for cash.
BIM100150 - Miscellaneous income: calculating the profits - HMRC internal manual - GOV.UK (www.gov.uk)

Jeremy535897

Indeed. Most people do not need to think about the issue because they receive less than £1,000 in the tax year and have no other source that would use up the trading allowance. Then you can ignore non-cash vouchers. Technically, if you are self employed and turn over more than £1,000 in your self employment, does this then mean that if you get £50 once a year from YouGov for filling in a few surveys, you should declare it as miscellaneous income? Presumably so.

silvercar

jimmo said:

silvercar said:

Jeremy535897 said:

It doesn't make any difference how you are paid.

Is that true if there is no cash option?

The real question is whether the "voucher" can be exchanged for cash.
BIM100150 - Miscellaneous income: calculating the profits - HMRC internal manual - GOV.UK (www.gov.uk)

Thank you. My Amazon chosen reward (no cash out option) keeps on growing.

Jeremy535897 said:

Indeed. Most people do not need to think about the issue because they receive less than £1,000 in the tax year and have no other source that would use up the trading allowance. Then you can ignore non-cash vouchers. Technically, if you are self employed and turn over more than £1,000 in your self employment, does this then mean that if you get £50 once a year from YouGov for filling in a few surveys, you should declare it as miscellaneous income? Presumably so.

An (un) fortunate combination of a vaccine trial stipend, a couple of extended market research studies plus an active prolific account means that £1000 level could be breached this year. At least the snapping receipts apps only pay in vouchers, so it seems they don’t count for the limit.