Sole Trader - Mystery shopper - query

sheramber

Bookworm105 said:

silvercar said:

Singlemummy_2 said:

silvercar said:

Singlemummy_2 said:

Sounds like a voluntary role where you do the role voluntarily but get reimbursed for out of pocket expenses - would not think this was something you need to put through accounts

I would have thought having the free meal is the payment.

Yes but as it’s a reimbursement of expenses can this be seen as a payment? I run an organisation and we have volunteers doing various roles, we reimburse our of pocket expenses incurred during their time volunteering - it’s not a payment for the time given, it’s an out of pocket expense, their time is not compensated financially 

I agree, it can’t be seen as a payment for tax purposes. I was just explaining why people would do it. 

They have performed "work" in terms of the production of a judgement/report on their meal experience. They are therefore "trading" as a mystery shopper, therefore they have an income (payment for the meal) offset by the cost of the meal leaving them with zero profit. 

Technically it is not an out of pocket expense, the sole reason for the meal was to perform the duty of their employment as a reviewer of a meal. The fact they make no profit because they are only paid what they spent (or not paid a rate for time) is irrelevant, the only reason for the meal was to perform the work required to sell the review of it. The meal is therefore a cost of the sale

Whether that can be recorded in FreeAgent requires OP to return and answer the first set of questions regrading entity involved.

Although HMRC admin frequently give (partially) incorrect responses on their forum, in this case they are correct
Mystery Dining - what's taxable? - Community Forum - GOV.UK

Some agencies psy the cost of the meal but also pay for time on top of that.
He would then have a profit. 

Hence why asked the

OP how his agency paid him.

Bookworm105

sheramber said:

Bookworm105 said:

silvercar said:

Singlemummy_2 said:

silvercar said:

Singlemummy_2 said:

Sounds like a voluntary role where you do the role voluntarily but get reimbursed for out of pocket expenses - would not think this was something you need to put through accounts

I would have thought having the free meal is the payment.

Yes but as it’s a reimbursement of expenses can this be seen as a payment? I run an organisation and we have volunteers doing various roles, we reimburse our of pocket expenses incurred during their time volunteering - it’s not a payment for the time given, it’s an out of pocket expense, their time is not compensated financially 

I agree, it can’t be seen as a payment for tax purposes. I was just explaining why people would do it. 

They have performed "work" in terms of the production of a judgement/report on their meal experience. They are therefore "trading" as a mystery shopper, therefore they have an income (payment for the meal) offset by the cost of the meal leaving them with zero profit. 

Technically it is not an out of pocket expense, the sole reason for the meal was to perform the duty of their employment as a reviewer of a meal. The fact they make no profit because they are only paid what they spent (or not paid a rate for time) is irrelevant, the only reason for the meal was to perform the work required to sell the review of it. The meal is therefore a cost of the sale

Whether that can be recorded in FreeAgent requires OP to return and answer the first set of questions regrading entity involved.

Although HMRC admin frequently give (partially) incorrect responses on their forum, in this case they are correct
Mystery Dining - what's taxable? - Community Forum - GOV.UK

Some agencies psy the cost of the meal but also pay for time on top of that.
He would then have a profit. 

Hence why asked the

OP how his agency paid him.

? I was not suggesting otherwise
shame OP has not returned...