Do I have to declare my online earnings for tax purposes?
The short answer is that everything you earn from completing tasks must be declared as income. You may not have to pay tax on it. Read on to find out more information.
NB: This information should be taken as a guide. As everyone’s circumstances are different, I advise everyone to call HMRC themselves.
- Do I have to declare my online earnings to HMRC?
- Will I have to pay tax on it?
- Do I have to declare voucher earnings?
- How do you know all of this?
- Top tips
Any money that you earn in return for completing tasks should be declared to HMRC.
Completing surveys, watching videos, playing games etc are all considered to be tasks. So, if you’re getting paid to do them, you are earning an income, however small it is. That means it needs to be declared to HMRC.
Well, that’s a different question. Whether you pay tax or not depends on your personal circumstances.
If you earn below your personal tax threshold (£11,500 for tax year 2017-18) and your online earnings also come under the threshold, no you won’t pay tax.
However, you still need to declare any income, and since you’re earning form completing tasks, it’s counted as income.
The rules are the same, whether you’re paid in cash (PayPal etc), vouchers, or goods. All are considered income and therefore must be declared.
If you’re on an income related benefit, i.e. Employment & Support Allowance, Jobseeker’s Allowance, Carer’s Allowance, Income Support etc, you need to let the DWP know that you’re earning.
Each benefit has specific rules attached to it before your benefits are reduced. For example, if you’re on ESA, you can do permitted work. That means you can do any work, for up to 16 hours & £120 a week, you just have to let the DWP know that you’re doing it.
If you’re on an income related benefit, please check the rules for the benefits you’re on to ensure that you won’t be penalised.
You can find out more information about the different benefits here.
I was confused about what I’d have to declare, so I called up HMRC in June & spoke to a technical adviser.
After much search through their books and rules etc (survey sites aren’t listed in their general rules so she had to look), she said that all extra income – INCLUDING vouchers – must be declared. This includes sites where you complete tasks and get paid e.g. survey sites.
If the extra income is under £2500 pa you won’t need to register as self employed or complete a self assessment form, just call HMRC at the end of the tax year and they’ll add it for you as “other income”.
If you earn over £2500 per annum from survey sites, and the like, you will need to register as self employed & complete a self assessment form.
That means ANYTHING you’ve earned online from completing tasks must be declared no matter the medium of payment. Money paid into PayPal is like money paid into your bank account according to HMRC.
The adviser also said that if you’re only getting a tiny amount, like £5 a month, there’s not really any point declaring it as it’s negligible.
- If your total income for 2017-18 is under £11,500, you have to declare your earnings, but won’t actually pay any tax on them.
- Keep detailed records so you know exactly how much you have coming in each month. That way, there’ll be less panic around tax time.
- Be aware of what your personal limits are. If you’re claiming any income related benefits, you need to inform the DQP that you have an income, however small it is.
- http://www.moneysavingexpert.com/family/make-money-surveys – Go to the tax section
- Track your earnings on all GPT sites.
- Other GPT sites that we recommend
- Join our Facebook group for Swagbucks UK users.