mystery shopping tax query.

bowz25

hi all
i started m.s in april 07 and registered with tax.
i have filled out a small earnings form for national insurance and was advised i did not have to pay the tax bill i received for £90.00.

In total i have earned about £170 since i started with this work and as i have always worked for employer i know little about tax and returns.
It sounds thick but now i am panicking and hubby is going to try and help me fill out the form and get it back in time for deadline.
I only took this work to try and make extra funds as our child tax was stopped 2 years ago because they said we were overpaid in 2003. It really is making me think its not worth doing the work because i am so confused with this tax situation.
Does anyone know how much i would pay on £170.00 earned since april 07 to date so i can send tax a payment.
i am going to try and work this out tommorrow i know roughly about petrol costs etc is it 40p per mile. and 6pence for printing work.
I ran tax today and he said if i get it to them by 31/1/08 it is okay.
i would appreciate any help or advice.
thanks

meyore

Have a look at this thread, hopefully it'll tell you what you need to know
http://forums.moneysavingexpert.com/showthread.html?t=614705

meyore

Timmne wrote: »

Working out how much tax you’ll have to pay

You will be taxed at your normal tax rates for your mystery shopping. This sounds desperately vague but means that your MSing income (profit) will be added to any other income you have (employment, generally) by HMRC and taxed at the following rates (between 06/04/07 and 05/04/08):

If your total income is less than £5,225, you’ll pay no tax.
If your total income is more than this, the next £2,230 will be taxed at 10%.
If your total income is over £7,455 (£5,225 + £2,230) then the next £32,370 (or anything up to this) will be taxed at 22%.
Any earnings higher than £39,825 will be taxed at 40%.

Tax rates can seem confusing but following the above information logically will help you work out your tax.

For a lot of MSers, MSing is done in addition to their full time job. If the full time job pays between £7,455 and £39,825 then your MSing income will most probably be taxed at 22%.

Unless you earn more than £5,225 by mystery shopping, National Insurance (self employment’s version of National insurance is known as Class 4) will not be applicable.

This is the bit I think applies to you.

Hope it helps.