Tax on survey incomes

mybestattempt

On the self employment section of the return there is a box to enter turnover, so £1200 using your example.

There is another box to claim the £1000 trading allowance, so £200 becomes taxable self employment which will be used in the calculation of your tax liability.

The amount of tax due depends on your overall tax liability on all sources of taxable income.

welshman5555

mybestattempt said:

On the self employment section of the return there is a box to enter turnover, so £1200 using your example.

There is another box to claim the £1000 trading allowance, so £200 becomes taxable self employment which will be used in the calculation of your tax liability.

The amount of tax due depends on your overall tax liability on all sources of taxable income.

I'm guessing 20% then as I am a low rate tax payer and earn less than £30k

mybestattempt

silvercar said:

mybestattempt said:

I'm sorry but I don't understand your thinking here.

A voucher which can be used to buy goods or services is moneysworth, what else could it be?

If you buy an item, in say M&S which costs £50, then pay £30 in cash and £20 with a M&S voucher (received for doing surveys) the voucher is worth £20.

The issue is that it is restricted to M&S. It cannot be converted into money. (and arguably, if food costs half the price in Lidl, that £20 voucher is only worth £10 if you shopped elsewhere).

In the link I posted - "

Example
A non-transferable holiday offered as an alternative to a sum of money as payment for a ‘story’ by a newspaper is taxable as miscellaneous income. The sum for assessment being the amount of the cash alternative.
A non-transferable holiday provided, with no cash alternative, as payment for a ‘story’ by a newspaper is not taxable as miscellaneous income as it cannot be converted into money.

you can see that the holiday that can be an alternative to a sum of money is assessed as that sum of money. The holiday without a cash alternative is not taxable as it cannot be converted to money.

Sorry, the fact that vouchers can only be used a particular store does not mean they are not moneysworth.

The example is correct, but I think you have possibly misunderstood the principle it is demonstrating which is, that the non transferable holiday on its own, with no alternative, is not moneysworth. 

Moneysworth is something which has value which can be passed on and realised.

The holiday itself can't be passed on to anyone to realise any value. 

Obviously where there's a cash alternative, it's simply money and can be spent so it's a taxable receipt.

If the alternative was £1000 worth of vouchers which could be used to buy goods in a particular store (or services from a provider) then they have value and are moneysworth. The taxable receipt is £1000.

So, if the reward for doing a survey is a choice between £20 cash or £20 worth of vouchers the taxable receipt is £20 whichever you choose.

silvercar

mybestattempt said:

silvercar said:

mybestattempt said:

I'm sorry but I don't understand your thinking here.

A voucher which can be used to buy goods or services is moneysworth, what else could it be?

If you buy an item, in say M&S which costs £50, then pay £30 in cash and £20 with a M&S voucher (received for doing surveys) the voucher is worth £20.

The issue is that it is restricted to M&S. It cannot be converted into money. (and arguably, if food costs half the price in Lidl, that £20 voucher is only worth £10 if you shopped elsewhere).

In the link I posted - "

Example
A non-transferable holiday offered as an alternative to a sum of money as payment for a ‘story’ by a newspaper is taxable as miscellaneous income. The sum for assessment being the amount of the cash alternative.
A non-transferable holiday provided, with no cash alternative, as payment for a ‘story’ by a newspaper is not taxable as miscellaneous income as it cannot be converted into money.

you can see that the holiday that can be an alternative to a sum of money is assessed as that sum of money. The holiday without a cash alternative is not taxable as it cannot be converted to money.

Sorry, the fact that vouchers can only be used a particular store does not mean they are not moneysworth.

The example is correct, but I think you have possibly misunderstood the principle it is demonstrating which is, that the non transferable holiday on its own, with no alternative, is not moneysworth. 

Moneysworth is something which has value which can be passed on and realised.

The holiday itself can't be passed on to anyone to realise any value. 

Obviously where there's a cash alternative, it's simply money and can be spent so it's a taxable receipt.

If the alternative was £1000 worth of vouchers which could be used to buy goods in a particular store (or services from a provider) then they have value and are moneysworth. The taxable receipt is £1000.

So, if the reward for doing a survey is a choice between £20 cash or £20 worth of vouchers the taxable receipt is £20 whichever you choose.

Even if the shop is so expensive that the value of the voucher, combined with the tax that will have to be paid, means that you are out of pocket compared with where you normally shop? 

mjm3346

silvercar said:

mybestattempt said:

silvercar said:

mybestattempt said:

I'm sorry but I don't understand your thinking here.

A voucher which can be used to buy goods or services is moneysworth, what else could it be?

If you buy an item, in say M&S which costs £50, then pay £30 in cash and £20 with a M&S voucher (received for doing surveys) the voucher is worth £20.

The issue is that it is restricted to M&S. It cannot be converted into money. (and arguably, if food costs half the price in Lidl, that £20 voucher is only worth £10 if you shopped elsewhere).

In the link I posted - "

Example
A non-transferable holiday offered as an alternative to a sum of money as payment for a ‘story’ by a newspaper is taxable as miscellaneous income. The sum for assessment being the amount of the cash alternative.
A non-transferable holiday provided, with no cash alternative, as payment for a ‘story’ by a newspaper is not taxable as miscellaneous income as it cannot be converted into money.

you can see that the holiday that can be an alternative to a sum of money is assessed as that sum of money. The holiday without a cash alternative is not taxable as it cannot be converted to money.

Sorry, the fact that vouchers can only be used a particular store does not mean they are not moneysworth.

The example is correct, but I think you have possibly misunderstood the principle it is demonstrating which is, that the non transferable holiday on its own, with no alternative, is not moneysworth. 

Moneysworth is something which has value which can be passed on and realised.

The holiday itself can't be passed on to anyone to realise any value. 

Obviously where there's a cash alternative, it's simply money and can be spent so it's a taxable receipt.

If the alternative was £1000 worth of vouchers which could be used to buy goods in a particular store (or services from a provider) then they have value and are moneysworth. The taxable receipt is £1000.

So, if the reward for doing a survey is a choice between £20 cash or £20 worth of vouchers the taxable receipt is £20 whichever you choose.

Even if the shop is so expensive that the value of the voucher, combined with the tax that will have to be paid, means that you are out of pocket compared with where you normally shop? 

That's irrelevant and most survey sites just offer "regular" shop vouchers - competitions are more likely to have vouchers for the expensive  "one-off" type of shop and there is generally no tax to pay on competition wins regardless of value, cash or otherwise

welshman5555

So just to get this clear. If you claim a voucher, say Amazon or Currys, and use it towards the cost of something, it is taxable. If it is something else, more akin to a prize if you will, then it's not taxable. Would that be a fair summary?

mybestattempt

If your reward/payment for doing surveys/studies has money's worth, a value you can transfer on to buy goods (or services), it's taxable. So vouchers are taxable.

I'm not sure what you mean by akin to a prize, but if you apply the basic principle:

is this a reward for a service provided and does it have money's worth; then it's taxable.

welshman5555

I mean, if I get awarded an experience day or holiday, that's like a prize. A voucher for Amazon or Asda could be put towards shopping. A prepaid MasterCard could be used to buy something. A payment to you revolut card can be used to buy something. So the first ones are not taxable, everything else is yes?

sebloak

Something ive never been able to find out the answer for is what happens if your on some form of unemployment benefit, doing surveys as permitted work and the combined total of benefits and survey earnings is still no where anywhere near the yearly personal tax allowance?  is it still declarable?

mybestattempt

welshman5555 said:

I mean, if I get awarded an experience day or holiday, that's like a prize. A voucher for Amazon or Asda could be put towards shopping. A prepaid MasterCard could be used to buy something. A payment to you revolut card can be used to buy something. So the first ones are not taxable, everything else is yes?

Yes, that's it.

If the experience or holiday is specifically for you, it's not money's worth as there's no value to transfer on, then it's not taxable.