2018-19 End of Year Accounts and Tax Returns

BooBoo

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Hi there

Just wondering if anyone else is doing their end of year accounts and self employed tax return?

I always leave it until January to complete, which is very silly really but every year it is the same!

I have been doing my own self employed assessments for the last five years now (never met the tax threshold, though). In previous years all my meagre income was from online ebay and Etsy sales. This is the first year that I need to include income from other WFH sources.

I know Matched Betting profit does not be to be included as earnings as it is tax exempt. I am also assuming that CashBack earnings from places like TCB, Quidco, Shoppix, MobileXpresions, and OhMyDosh does not need to counted as these are customer rewards as such (like getting money of shopping vouchers type of thing). Is this correct? Can I disregard this type of income?

I am thinking that I will need to include my earnings from the following but not cashback:

Respondent
Prolific
UserZoom
Crisp Thinking
UserTesting

I don’t think I have any other sources other than ebay and Etsy sales. I can pull off all my figures from PayPal as all my payments go there.

Can I please have your thoughts on this? Any advice regarding cashback? What do you do at year end?

Thank you.
 

Jon

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Yes to the 5 websites you’ve mentioned as they all pay you in cash :)
 

Jon

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BooBoo

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Thank you. I have just done a quick Google Search on whether cash back counts as income, and is therefore, taxable, and the answer is NO. Here are a few quotes I came across, which may help others when doing their self assessments:

From the green site

No. As it's basically a discount from money you are paying .. i.e it simply reduces the price, it isn't income. The money is not coming direct from the retailer, it is a commission that's paid to quidco, which they effectively pay on a portion to you.

From LoveMoney.com May 2016

The taxman isn’t too worried about this either and any money you receive is treated as a discount, so there's no tax to pay.

From www.moneysavinganswers.com 12 January 2020

However, HRMC has dismissed this as nonsense stating:

“There is no question of tax becoming payable on cashbacks received from credit, debit and loyalty cards or any other kind of cashback payment.”

Rather than being seen as income, cashback is merely considered a discount on the goods/services purchased, albeit a belated one.

This article, updated 12 Jan 2020, does a very good job of explaining which bits of ‘extra cash’ you make from home are taxable. Really helpful.


Regarding tax deductable expenses, yes I claim everything I can. I also use the HMRC flat rate of £26 per month for using my home for work to keep things simple.
 
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