Surveys...cash (and be taxed) or vouchers?

W3Schools

Darcey

New Member
Joined
May 10, 2014
Messages
597
Likes
0
Points
0
#1
Just wondering...

Whilst asking for payouts via Paypal from surveys it's obvious I would need to declare them under earnings as a self-employed tax payer. However, I'm guessing that if I choose vouchers for goods etc, these amounts are not taxable? In which case it makes sense not to cash out in Paypal unless I'm a non-taxpayer.

Going off topic a bit, I know that if you receive a cash gift it can be as much as the benefactor wishes as it is not you that gets taxed on it, it is they. However, should they die within 7 years of giving you a cash gift, then you can be chased for the tax on it then. I was quite surprised to learn this
 

Blackpepper1

Well-Known Member
Joined
Feb 7, 2014
Messages
2,833
Likes
66
Points
178
#2
Vouchers aren't taxable. :)
They are counted as rewards and not treated as income.
I prefer cash as much as possible easier to use where I need to plus as a Self Employed person I don't pay tax until I am in profit after all expenses are taken off.
 

slashingthedebt

30 Something single girl on a debt free mission
Joined
Jul 26, 2014
Messages
118
Likes
0
Points
0
Location
Swansea, UK
#3
Blackpepper1 said:
Vouchers aren't taxable. :)
They are counted as rewards and not treated as income.
I prefer cash as much as possible easier to use where I need to plus as a Self Employed person I don't pay tax until I am in profit after all expenses are taken off.
I've heard conflicting info about this. My understanding is that rewards as in cashback sites and vouchers from Tesco are non taxable but vouchers from Survey and PTC sites are as you are providing a service.

It's me first year of working as self employed and I need to get round to filling in my tax return. So i'm not 100% what is and isn't taxable but would like to get it right.

Do people list each MS company they work for seperatly when they do their return or one lump sum for self employed income?
 

Jon

Administrator
Staff member
Joined
Oct 17, 2013
Messages
22,212
Likes
1,535
Points
283
Age
37
Location
Leeds
#4
One lump sum
 

Darcey

New Member
Joined
May 10, 2014
Messages
597
Likes
0
Points
0
#6
Blackpepper1 said:
Vouchers aren't taxable. :)
They are counted as rewards and not treated as income.
I prefer cash as much as possible easier to use where I need to plus as a Self Employed person I don't pay tax until I am in profit after all expenses are taken off.
Seems like it might be vouchers for me. Need to think about this one. I had a big tax bill (big to me anyway) with my first SA, the following one the tax owed me, the other I had to pay a few hundred...for the little i earn from the surveys i hate to think i might have to pay tax on it as well!!
 

Blackpepper1

Well-Known Member
Joined
Feb 7, 2014
Messages
2,833
Likes
66
Points
178
#7
Darcey said:
Blackpepper1 said:
Vouchers aren't taxable. :)
They are counted as rewards and not treated as income.
I prefer cash as much as possible easier to use where I need to plus as a Self Employed person I don't pay tax until I am in profit after all expenses are taken off.
Seems like it might be vouchers for me. Need to think about this one. I had a big tax bill (big to me anyway) with my first SA, the following one the tax owed me, the other I had to pay a few hundred...for the little i earn from the surveys i hate to think i might have to pay tax on it as well!!
i know it is difficult. To me vouchers can only be used say for one thing usually one shop or several so it isn't really the same as cash. Cash you can spend as you like and that is like a job you use it for what you want for paying for bills etc. A Gift Card you can only use to buy something specific.
People say different things that is the problem.
I even read of someone on the green site who said they rang the Tax Office directly and they were told that earnings from sites online are counted as being on a 'reward' system and are not counted as taxable earnings.
I think though the safest is to count all cash payments received as taxable income. I know I would rather that since that is what I am doing as far as making money so want to be able to count it.
I have heard and read of people saying that you have to declare vouchers others that you don't have to so it is a bit of a minefield as far as that goes.
If Gift Cards were going to get counted then you may as well just have the cash so you can use it for whatever you want.
Gift Cards would be no use if they were taxable and then if they are taxable how do you pay tax on something that is only a Gift Card?
Unlike cash payments you can't take money from the Gift Card to put aside so you can pay tax out of it.
 

Darcey

New Member
Joined
May 10, 2014
Messages
597
Likes
0
Points
0
#8
Blackpepper1 said:
Darcey said:
Blackpepper1 said:
Vouchers aren't taxable. :)
They are counted as rewards and not treated as income.
I prefer cash as much as possible easier to use where I need to plus as a Self Employed person I don't pay tax until I am in profit after all expenses are taken off.
Seems like it might be vouchers for me. Need to think about this one. I had a big tax bill (big to me anyway) with my first SA, the following one the tax owed me, the other I had to pay a few hundred...for the little i earn from the surveys i hate to think i might have to pay tax on it as well!!

i know it is difficult. To me vouchers can only be used say for one thing usually one shop or several so it isn't really the same as cash. Cash you can spend as you like and that is like a job you use it for what you want for paying for bills etc. A Gift Card you can only use to buy something specific.
People say different things that is the problem.
I even read of someone on the green site who said they rang the Tax Office directly and they were told that earnings from sites online are counted as being on a 'reward' system and are not counted as taxable earnings.
I think though the safest is to count all cash payments received as taxable income. I know I would rather that since that is what I am doing as far as making money so want to be able to count it.
I have heard and read of people saying that you have to declare vouchers others that you don't have to so it is a bit of a minefield as far as that goes.
If Gift Cards were going to get counted then you may as well just have the cash so you can use it for whatever you want.
Gift Cards would be no use if they were taxable and then if they are taxable how do you pay tax on something that is only a Gift Card?
Unlike cash payments you can't take money from the Gift Card to put aside so you can pay tax out of it.
Thanks Blackpepper it's given me food for thought...I've not cashed out anything yet and will probably take a while before I do so plenty of time to decide...x
 

RedAlix

Active Member
Joined
Jan 21, 2014
Messages
945
Likes
1
Points
28
Location
Kent, UK
Website
mymortgagefree.blogspot.co.uk
#9
I've not declared vouchers before. This is the first year I have been paid to paypal so I will be declaring that. Need to get on and do my tax return.. really don't know why I put it off for so long.
 

Sessionz

Active Member
Joined
Feb 6, 2018
Messages
66
Likes
11
Points
38
Age
37
#10
Vouchers aren't taxable. :)
They are counted as rewards and not treated as income.
I prefer cash as much as possible easier to use where I need to plus as a Self Employed person I don't pay tax until I am in profit after all expenses are taken off.
Is this advice about vouchers not being taxable still valid in 2018?
 

Jon

Administrator
Staff member
Joined
Oct 17, 2013
Messages
22,212
Likes
1,535
Points
283
Age
37
Location
Leeds
#11
Is this advice about vouchers not being taxable still valid in 2018?
Well you aren’t paid in vouchers are you with most companies. You get paid in points which you then choose to turn into vouchers or whatever it is you want. So the survey companies themselves just pay you in points

Unless all that’s changed as I’ve not done any online surveys in YEARS!
 

Svendo42

Well-Known Member
Joined
Dec 5, 2017
Messages
59
Likes
16
Points
58
Age
45
#12
I would contact HMRC yourself then you're getting it straight direct from them - get them to point you to a page on their site and then save a copy of that with your files.

Remember that money exists to solve the double coincidence of wants problem - money earned / vouchers earned same thing. Money won is different.
 

JesseEverAfter

Well-Known Member
Joined
Feb 18, 2017
Messages
95
Likes
29
Points
48
Location
Bristol
#13
Just dropping into this thread to be aware of the two tax allowances introduced last year (£1,000 for trading (and miscellaneous income) and £1,000 for property). The allowance is based on income (not profit) so you can't take anything off it for expenses etc.

For example my Dad is an extra who gets a few jobs a year (much less than £1,000) and he contacted HMRC to be on the safe side and they advised this income falls under the trading allowance and he does not need to register unless the amount he gets paid increases to over £1,000 in a tax year (travel costs and expenses can't be taken out of this though).

*Not advice just thought something to think about and contact HMRC if unsure.
 

Advertisement

Kloudhost Offer

Members online

Forum statistics

Threads
4,522
Messages
130,912
Members
6,582
Latest member
georginauk

Latest profile posts

Moneymental is number 1 on google. Yay!
Perfection is the enemy of good (I keep having to remind myself)
Getting some good ideas now for extra earners!
Looking forward to being a part of TMS
Ar_
Wondering if I'm starting to get a bit too hooked on these slot games