Freebie Tax?

pspupgrade · 05-07-09, 09:29 AM

Hey there guys.

I was just wondering, does anybody count their freebies as earnings, and pay income tax for them?
I mean, I've heard that some do, saying that it's basic honesty, but others would just class what they get as gifting.

What are your opinions on this? And would it have to apply for an under-16-year-old?

Thanks.

joannakay · 05-07-09, 09:32 AM

No, i don't, its just a gift... you shouldn't have to pay tax on it.

gez18 · 05-07-09, 09:33 AM

no way i pay enough in tax

Harvez · 05-07-09, 09:34 AM

you dont pay tax until your 18, some say they pay tax on their freebie cash but I doubt it.

pspupgrade · 05-07-09, 09:35 AM

Thanks for your feedback.
I was just wondering because I've heard it be called Freelance Referral Marketing. Meh, maybe not then.

bmh16 · 05-07-09, 09:59 AM

Quote:

Originally Posted by harvez

you dont pay tax until your 18, some say they pay tax on their freebie cash but I doubt it.

My Dad's been worried about it before as i've received over the tax threshold. Apparently tax can be passed onto your parents. I did post a thread like this ages ago but forgot the true extent of it.

ndev2k · 05-07-09, 10:11 AM

I know that Furbs declares it as earnings. I believe if you are getting cash then you should declare it but if you are getting actual gifts then I don't believe you should need to.

bmh16 · 05-07-09, 10:15 AM

In fact i've found the thread i made:

http://www.exceem.co.uk/forums/lounge/21552-tax.html

Hope it might be useful to some

**the_icks** · 05-07-09, 10:18 AM

found this

Small extra earners
For those who do not earn a salary and have been making a bit of extra cash on the side by using cash back sites and doing a spot of mystery shopping here and there, you are probably not exceeding your personal allowance and so you do not need to pay tax. However, some of the larger companies that organise mystery shopping and online surveys will automatically take your tax and national insurance contributions out of your pay for you. This is great if you already earn a salary, as it means you don’t have to worry about your tax return, but if you aren’t exceeding your personal allowance, it’s money that you don’t need to pay. Fret not, you can get this money back in a jiffy by filling out this R40 form and sending it in, or by writing a letter to the Revenue informing them of what has happened (although this will probably take longer to process).

If you have exceeded your threshold then I think you have to declare it as earnings.

**the_icks** · 05-07-09, 10:19 AM

Extra earnings and PAYE
If you usually pay your taxes using the PAYE system and would prefer not to think about all this extra tax stuff that is indeed mightily complicated, there is something you can do to make it all go away. By changing your PAYE code with the Revenue, your extra earnings can be taken into account when you are taxed on your salary and so you will not have to pay anything extra or fill out a return. In order to change your PAYE code, you have to work out how much extra you are earning and then contact the Revenue who will help you sort it out. Although it sounds great, this solution is really only effective for the minority of cases for several reasons:

Firstly your extra earnings can’t add up to more than £2,500, after which you really have to fill out a separate tax return.
Secondly, your extra earnings need to be quite stable so that you can pinpoint exactly how much you expect to earn in one tax year. If you are renting a property at a set rate per month/annum, this is pretty easy. However if you are earning bits of cash here and there it becomes much more difficult to predict and you’ll end up either over or underpaying, which just leads to more form-filling. Using your PAYE code to cover extra earnings also means that you pay your tax sooner, as it comes out monthly, whereas your extra earnings could be sporadic leaving you in the red some months

moviedrome · 05-07-09, 11:16 AM

Without going into detail i've seen some worrying posts in this thread - your age is irrelevant for tax, you pay tax from the moment you are born to the moment you die if you earn over the personal allowance.

the_saint · 05-07-09, 12:15 PM

Also, the fact you get a gift rather than cash makes no difference - it can be taxed as a benefit in kind. Otherwise everyone would just give a shopping list of things they want for the month to their employer in order to avoid paying tax.

05-07-09, 09:29 AM	#1
pspupgrade iPod 20gb Join Date: Mar 2009 Location: Sussex, UK Posts: 912	Freebie Tax? Hey there guys. I was just wondering, does anybody count their freebies as earnings, and pay income tax for them? I mean, I've heard that some do, saying that it's basic honesty, but others would just class what they get as gifting. What are your opinions on this? And would it have to apply for an under-16-year-old? Thanks.

05-07-09, 09:33 AM	#3
gez18 iPod 60gb Join Date: Dec 2007 Location: cambs Posts: 1,935	no way i pay enough in tax __________________ FREE PS3/FREE IPHONE/FREE AMAZON VOUCHERS

05-07-09, 09:34 AM	#4
Harvez Mini Mac Join Date: Nov 2006 Location: l33dz Posts: 9,421	you dont pay tax until your 18, some say they pay tax on their freebie cash but I doubt it. __________________ Freebiejeebies \| Free iphone \| Free Blackberry \| Free Wii U \| Free laptop ^^^^ its not real stop begging losers ^^^^ Someone once said "Life is what you make it", I disagree sometimes life makes you into what you are.

05-07-09, 10:11 AM	#7
ndev2k Mini Mac Join Date: Jun 2008 Location: St Helens Posts: 4,220	I know that Furbs declares it as earnings. I believe if you are getting cash then you should declare it but if you are getting actual gifts then I don't believe you should need to. __________________ Free Stuff \|Free iPhone 3GS \| Free Nintendo Wii \| Free PS3 \| Free Stuff Spoiler Received: DS Lite w/Cooking Guide \| Bank Transfers worth £1839 \| 320GB WD Portable HDD \| 8GB iPod Touch \| Navman S70 3D Sat Nav \| Sony Playstation 3 80GB \| £340 Amazon Vouchers \| Singstar Vol 1 & 2 \| Fisher Price Little People Santa's Sleigh \| 7 in 1 Trekker from Mothercare \| Singstar Abba \| iPod Shuffle 1GB Blue \| Windows 7 Ultimate \| Linksys Wireless Router \| Buzz Quiz TV \| Buzz Brain of the UK \| Silver Necklace \| Bio-Oil \| iPhone 3GS 16GB \| 750GB Internal Hard Drive \| SATA Cable \| Hoover Dishwasher \| Sceptre II Gas Fire \| Walnut Fire Surround \| Heated Towel Radiator \| Amazon Kindle 3G + Wi-Fi \| £424 Paypal \| £520 worth of Building Materials \| X-Factor (Dual Mic Pack) Game (PS3) \| £90 Amazon Vouchers (prizes in Competition) \| Nintendo 3DS with Zelda Game Value Of Received Gifts : £6019(approx)

05-07-09, 10:15 AM	#8
bmh16 Call me Ben .... Join Date: Apr 2006 Location: Bristol / Neath Posts: 7,728	In fact i've found the thread i made: http://www.exceem.co.uk/forums/lounge/21552-tax.html Hope it might be useful to some __________________ FREE PS3 \| FREE iPod Touch \| FREE Wii Spoiler

05-07-09, 09:32 AM	#2
joannakay iPod Nano 4GB Join Date: Apr 2009 Location: Devon Posts: 325	No, i don't, its just a gift... you shouldn't have to pay tax on it.

05-07-09, 09:35 AM	#5
pspupgrade iPod 20gb Join Date: Mar 2009 Location: Sussex, UK Posts: 912	Thanks for your feedback. I was just wondering because I've heard it be called Freelance Referral Marketing. Meh, maybe not then.

05-07-09, 10:18 AM	#9
the_icks Mr Baldy Chicken Join Date: Mar 2006 Posts: 13,996	found this Small extra earners For those who do not earn a salary and have been making a bit of extra cash on the side by using cash back sites and doing a spot of mystery shopping here and there, you are probably not exceeding your personal allowance and so you do not need to pay tax. However, some of the larger companies that organise mystery shopping and online surveys will automatically take your tax and national insurance contributions out of your pay for you. This is great if you already earn a salary, as it means you don’t have to worry about your tax return, but if you aren’t exceeding your personal allowance, it’s money that you don’t need to pay. Fret not, you can get this money back in a jiffy by filling out this R40 form and sending it in, or by writing a letter to the Revenue informing them of what has happened (although this will probably take longer to process). If you have exceeded your threshold then I think you have to declare it as earnings.

05-07-09, 10:19 AM	#10
the_icks Mr Baldy Chicken Join Date: Mar 2006 Posts: 13,996	Extra earnings and PAYE If you usually pay your taxes using the PAYE system and would prefer not to think about all this extra tax stuff that is indeed mightily complicated, there is something you can do to make it all go away. By changing your PAYE code with the Revenue, your extra earnings can be taken into account when you are taxed on your salary and so you will not have to pay anything extra or fill out a return. In order to change your PAYE code, you have to work out how much extra you are earning and then contact the Revenue who will help you sort it out. Although it sounds great, this solution is really only effective for the minority of cases for several reasons: Firstly your extra earnings can’t add up to more than £2,500, after which you really have to fill out a separate tax return. Secondly, your extra earnings need to be quite stable so that you can pinpoint exactly how much you expect to earn in one tax year. If you are renting a property at a set rate per month/annum, this is pretty easy. However if you are earning bits of cash here and there it becomes much more difficult to predict and you’ll end up either over or underpaying, which just leads to more form-filling. Using your PAYE code to cover extra earnings also means that you pay your tax sooner, as it comes out monthly, whereas your extra earnings could be sporadic leaving you in the red some months

05-07-09, 11:16 AM	#11
moviedrome FJ Network Owner Join Date: Jan 2007 Posts: 6,602	Without going into detail i've seen some worrying posts in this thread - your age is irrelevant for tax, you pay tax from the moment you are born to the moment you die if you earn over the personal allowance. __________________ freebiejeebies Consoles \| Apple \| HDTV \| PS3 \| Mobiles \| Sports \| Gadgets \| Points \| Gifts \| Select Supported Network of the Year 2008 & 2009 & 2010 & 2011 Network Staff Member of the Year 2009 & 2011 (joint) Supported Network of the Year (Design) 2008 New and Unproven Network of the Year 2007

05-07-09, 12:15 PM	#12
the_saint Mini Mac Join Date: Jan 2007 Location: Manchester Posts: 5,515	Also, the fact you get a gift rather than cash makes no difference - it can be taxed as a benefit in kind. Otherwise everyone would just give a shopping list of things they want for the month to their employer in order to avoid paying tax.