Tax on survey incomes

silvercar

welshman5555 said:

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?

My understanding is that if you have a choice whether to take cash or cash equivalent, it is taxable. If you only have the option of a voucher for a particular store it isn't taxable. A prize isn't usually taxable.

mybestattempt

sebloak said:

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?

If your total taxable income (and not all benefits are taxable) is less than the personal allowance then there is no need to do a tax return to declare your taxable income to HMRC.

I would think you have to declare full amount of survey income to DWP if you receive means tested benefits. 

However, I'm not familiar with DWP/benefits rules, maybe check on the benefits board.

mybestattempt

silvercar said:

My understanding is that if you have a choice whether to take cash or cash equivalent, it is taxable. If you only have the option of a voucher for a particular store it isn't taxable. A prize isn't usually taxable.

I'm sorry, but your understanding about store vouchers is still flawed, despite this and the other thread you started on the tax cutting board.

A shopping voucher is taxable whether you can use/spend it with a specific retailer or multiple retailers. A voucher with a monetary value is money's worth, it has a value which can be transferred for goods or services.

kimwp

@silvercar, quote from the link you posted

"miscellaneous income sweep-up provisions charge" income tax on "money or money’s worth" 
Definition of money's worth at the link below

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim00540

Which states: "where a benefit is obtained by means of a voucher or credit token. Then the chargeable amount is the cost of providing the voucher or token and the money, goods or services for which it is capable of being exchanged"