We just finished our fourth payback, and we paid out an amazing amount of money.
Some of you received quite a lot of £££ and I just wanted to bring to your attention that this may have tax implications for you.
I am not a personal tax advisor but the basics are that any income should be disclosed on your tax return.
There is some advice on the HRMCs website, but they don't have a long list of what does or doesn't qualify.
If you want to find out more you can call them to discuss if you are liable to pay tax.
With respect, that is not true! Under 18s do have to pay tax - they have a tax free allowance like everyone else. If they earn above that allowance, they pay tax on that amount, simples. The same goes for students.
And why would it be only for figures of £600 or more? Where on earth did that figure come from?! It applies to every penny!
"Everyone in the country can have a certain amount of income without having to pay any Income Tax. This is called your 'personal allowance'. This tax year (2010-11), the personal allowance for everyone under the age of 65 is £6,475 - meaning you won't pay any Income Tax on income up to that amount."
I am not a personal tax advisor but the basics are that any income should be disclosed on your tax return.We mention it in our terms and conditions for Payback that it is up to you to work out the tax implications - please see T's and C's: just copy/pasting this clause here for your reference:7.1.5. If you receive Paybacks in excess of 100% of the amount you have topped up in the period leading up to and including your Payback Date, there may be personal tax implications for you, which you will be required to take responsibility for.
What is written in section 7.1.5 sounds very dubious to me (but IANAL).
Giffgaff payback is somebody sending you money in recognition for a service which you have rendered to them. That sounds like income to me. If you were a plumber, and customers gave you money for sorting out their pipes, then that would be income - how is Giffgaff payment different ?
Now, section 7.1.5 is saying that if you receive some money from GG, but it's less than you spent with GG, then that's not needed to be declared as income for tax purposes...
So, supposing I work on the tills for Tesco for 10 hours a week at £10/hour. So I earn £100 per week, before tax. But, the Giffgaff section 7.1.5 appears to be saying, if I spend £110 a week on shopping in Tesco, then I don't have to pay any tax on the £100 a week I receive. That doesn't sound right.
[ I'm not a lawyer, or a tax adviser, or anything like that. Do not take this as legal or tax advise, consult a professional. ]