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  • FIRST POST
    • Bookworm_Del
    • By Bookworm_Del 15th May 17, 2:28 PM
    • 54Posts
    • 121Thanks
    Bookworm_Del
    Declaring Online Earning Income?
    • #1
    • 15th May 17, 2:28 PM
    Declaring Online Earning Income? 15th May 17 at 2:28 PM
    Hi,

    Hope you can help me at all. I have been doing online surveys and the like for years, unknowingly, I have been doing so without declaring these earnings. I was under the impression because I earned under 10,000 a year that I did not have to declare this.

    I recently found out that this activity actually qualifies as being self-employed. I suffer with poor mental health - anxiety, depression, PTSD etc and hearing this information has sky-rocketed some of my conditions because I am now so worried that I will get into trouble.

    I want to now do the right thing and tell HMRC that I am now self-employed and declare my online income. In the past, my earnings have ranged but I have never earned more than a couple of thousand pound in total over the years - this includes things like selling my own personal items online via Ebay and Gumtree and survey sites or receiving money for a research project or a competition win for example.

    However, my worry is if I now tell HMRC will they then look back into my account and see what I've earned and will I then end up in even more trouble? If that's the case, I will simply just stop my online earning. I'm completely unemployed by the way, in receipt of no benefits. I was on JSA a couple of years back and receiving housing benefit in the past but I was paying something towards those too. So it's not like I will have any income whatsoever without the online earning - therefore, I don't think I will ever earn enough to have to pay tax on it anyway.

    If you can advise me, please do? I have completely stopped my online activity since hearing that I have unknowingly done this. I am willing to just ring them and tell them I am now self-employed but I am worried I am going to end up in a lot of trouble. I would not earn anything online between now and telling them and from then onwards I would do everything that I have to do in regards to record-keeping and declaring income.

    Just a couple more questions -

    if I am self-employed, and say I tell them this now, when do I have to provide a self-assessment for? Like what year/months from now or does it go into the past?

    If I get a job and no longer need to be self-employed and rely on online earnings, can I simply tell them this and complete a tax return for just the months that I have been self-employed?

    Thankyou so much!
Page 3
    • scaredofdebt
    • By scaredofdebt 6th Dec 17, 3:17 PM
    • 972 Posts
    • 397 Thanks
    scaredofdebt
    At last a sensible law that helps out "normal" people!
    • Merlin's Beard
    • By Merlin's Beard 6th Dec 17, 9:44 PM
    • 146 Posts
    • 1,333 Thanks
    Merlin's Beard
    Thanks, I didn't know that since its not been widely reported that this new finance act had been made law.
    Originally posted by diamondflag66
    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?

    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
    • scaredofdebt
    • By scaredofdebt 12th Dec 17, 3:57 PM
    • 972 Posts
    • 397 Thanks
    scaredofdebt
    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
    • By zzzt 6th Jan 18, 5:10 PM
    • 262 Posts
    • 275 Thanks
    zzzt
    Taxes on additional sources of income
    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
    • By ElefantEd 6th Jan 18, 6:26 PM
    • 568 Posts
    • 1,077 Thanks
    ElefantEd
    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
    • By antrobus 6th Jan 18, 6:30 PM
    • 15,512 Posts
    • 22,146 Thanks
    antrobus
    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?
    Originally posted by zzzt
    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
    • By singhini 6th Jan 18, 7:10 PM
    • 332 Posts
    • 198 Thanks
    singhini
    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
    • By Merlin's Beard 6th Jan 18, 7:41 PM
    • 146 Posts
    • 1,333 Thanks
    Merlin's Beard
    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).
    Originally posted by ElefantEd
    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
    • By vegasvisitor 7th Jan 18, 9:00 AM
    • 2,146 Posts
    • 1,390 Thanks
    vegasvisitor
    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
    • By antrobus 7th Jan 18, 12:32 PM
    • 15,512 Posts
    • 22,146 Thanks
    antrobus
    ....The companies who are paying you money may have to provide details of their outgoings to HMRC and you would be caught.
    Originally posted by vegasvisitor
    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.
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