Declaring Online Earning Income?

Merlin's_Beard · 6 December 2017 at 10:44PM

diamondflag66 wrote: »

Thanks, I didn't know that since its not been widely reported that this new finance act had been made law.

The Government had to abandon plans to enact it in May, because they called a General election that they stunningly lost out at.

I mean, would you draw attention to the fact that you had to give something a second go because you fell on your face first time round? :rotfl:

So they quietly released it in the week of the Budget and tried to bury it and pretend it's been in place since May :cool:

scaredofdebt · 12 December 2017 at 4:57PM

Depends what you're trading, it's usually under Capital Gains and you can earn up to £11k odd a year tax free.

https://www.gov.uk/government/publications/rates-and-allowances-capital-gains-tax/capital-gains-tax-rates-and-annual-tax-free-allowances

zzzt · 6 January 2018 at 6:10PM

I have a (possibly stupid) question.

None of you bother to pay taxes on the money you make from Prolific and similar websites, right?

I make between £25 and £50 per month from doing surveys. But I also have a full time job which is taxed through PAYE.

Is money earned from doing surveys taxable income?

I don't think the taxman would care about such pitiful amounts, but if you were making a lot maybe it would matter?

ElefantEd · 6 January 2018 at 7:26PM

I do declare it, and pay tax on it.

However I seem to remember reading on MSE somewhere that the rules were being changed and that small amounts (up to £1000?) of additional income made outside of a main job need not be declared (and would therefore not be taxed).

antrobus · 6 January 2018 at 7:30PM

zzzt wrote: »

I have a (possibly stupid) question.

None of you bother to pay taxes on the money you make from Prolific and similar websites, right?

I make between £25 and £50 per month from doing surveys. But I also have a full time job which is taxed through PAYE.

Is money earned from doing surveys taxable income?

I don't think the taxman would care about such pitiful amounts, but if you were making a lot maybe it would matter?

Martin Lewis says;

Before you start counting the dosh, don't forget some of it belongs to the taxman. For most people, it'll be around a third. That said, earnings from most of these sources are unlikely to push non-taxpayers over the threshold.

As any sources of extra income need to be declared, ensure you're upfront with HM Revenue & Customs. Survey earnings are self-employed income, which means registering as self-employed with HMRC on 0300 200 3300. Register late and you could face an automatic £100 penalty. For full information, read HMRC's self-employment leaflet.

https://www.moneysavingexpert.com/family/make-money-online

Although I think the new £1,000 'tax break' would cover most people.

And, since you're asking, I've never declared a penny I've 'earned' online.

singhini · 6 January 2018 at 8:10PM

I think its called the "trading allowance" and its £1,000 (it covers micellenious income from goods, services or other assets).

Do remember its "income" of £1,000 and not "profits" of £1,000

Merlin's_Beard · 6 January 2018 at 8:41PM

ElefantEd wrote: »

I do declare it, and pay tax on it.

However I seem to remember reading on MSE somewhere that the rules were being changed and that small amounts (up to £1000?) of additional income made outside of a main job need not be declared (and would therefore not be taxed).

2017/18 tax year onwards - income has the £1000 trading allowance for additional income sources if the source is not your normal source of income. That's up to £84 a month, ish.

2016/17 tax year and previously ought to be declared and tax paid on if eligible.

It came into law at the end of last year under the Finance Bill (part 2), though all the media announcements were January-March last year.

vegasvisitor · 7 January 2018 at 10:00AM

Of course you have to pay tax (if you are over your personal allowance).

It's a requirement to register as self employed and do a tax return if you have this type of income outside employment. It's not difficult, and if caught not declaring you would be fined, pay a penalty on the total amount, plus interest. Why risk this?

The companies who are paying you money may have to provide details of their outgoings to HMRC and you would be caught.

antrobus · 7 January 2018 at 1:32PM

vegasvisitor wrote: »

....The companies who are paying you money may have to provide details of their outgoings to HMRC and you would be caught.

Well, that would be the point, wouldn't it?

HMRC have always had the power to demand such info from the likes of YouGov. They could even lay down regulations insisting that survey sites etc record NINOs to make their data matching even easier. For some reason they can't be bothered.

They've got better things to do with their time.

Declaring Online Earning Income?

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