Bank switch cash back.

[snappyfish]

Hi,

I received cash back sum of £1,000 from my back for switching account.

for accounting is this classed taxable income?

Do I record it as sales income?

Thanks

 

[snappyfish]

I'm a self employed sole trade. Thanks

 

[Scalloway]

According the the HMRC rerpresentative here cashback payments and switching incentives are not taxable.

10. Personal tax - Community Forum - GOV.UK

 

[snappyfish]

According the the HMRC rerpresentative here cashback payments and switching incentives are not taxable.

10. Personal tax - Community Forum - GOV.UK

Thanks for reply.

Also sites like topcashback where I order items for business use and get cashback is this classed and income taxable or not taxable? Thanks

 

[Scalloway]

From HMRC.
A cash-back received in the course of trading is a receipt of the trade to be included in taxable trade profits.

BIM100210 - Miscellaneous income: particular sources: cash-backs - HMRC internal manual - GOV.UK

www.gov.uk

 

[snappyfish]

From HMRC.
A cash-back received in the course of trading is a receipt of the trade to be included in taxable trade profits.

BIM100210 - Miscellaneous income: particular sources: cash-backs - HMRC internal manual - GOV.UK

www.gov.uk

Thank you.

 

[GLAbusiness]

Since this is a cash back from the bank is it really received in the course of trading. I would have thought it should be treated as a bank (negative) bank charge?

 

[snappyfish]

Since this is a cash back from the bank is it really received in the course of trading. I would have thought it should be treated as a bank (negative) bank charge?

My first question was cash from switching bank incentive.

My other question was cashback from buying good for business purposes then getting cashback via cashback sites like "Topcashback"

 

[Argentum Tax]

My other question was cashback from buying good for business purposes then getting cashback via cashback sites like "Topcashback"

Surely, this would be a reduction in the cost of goods bought, wouldn't it?

 

[snappyfish]

Surely, this would be a reduction in the cost of goods bought, wouldn't it?

I'm not sure myself, trying to find out from answers here.

 

[Argentum Tax]

I'm not sure myself, trying to find out from answers here.

I think you might get a range of opinions here. I suspect there is no one correct answer. If there was some case law on the matter other accountants or tax advisers probably would have mentioned it already. See what others say.