Quidco - is income payment in kind?

That you are right. It's not income ..... it's just a discount.

That's a fair point ... but not, apparently, one that HMRC recognise. The only 'cashback' that's considered for tax (IT or CGT) is when it is part of employment. (Example here which relates to Mtge cashbacks .. you need to use the previous / next page to see some of the detail)

http://www.hmrc.gov.uk/manuals/CG1manual/cg13027.htm

Otherwise we'd all have to register as self-employed in respect of the 'click through' cash. And I'd personally consider the cashback from Insurances etc is still 'discount'?

Later

Picked this, well researched, response up from an older thread on the same subject :

The Inland Revenue Statement of Practice No: 4 of 1997 deals comprehensively with the taxation of cashbacks and similar payments. See details on page 170 onwards (and in particular B7 page 172) in this document: http://www.hmrc.gov.uk/practitioners/sop.pdf

I have extracted the relevant paragraph to assist:

Quote:B7 - In general, ordinary retail customers purchasing goods, investments or services at arm's length will not be liable to income or capital gains tax in respect of any commission, discounts or cashbacks received by them.

So in the normal course of events, anyone earning cashback on their credit card for their own purchases would not be liable to tax nor would someone earning cashback on the completion of their own mortgage or purchasing their own car.

Mikeyorks - I think that's one of my quotes. Do you have the link as I remember there was more to it than your extract.

Thanks for finding that:

johnllew wrote: »

It depends what it is for. If it's cashback on personal purchases then it won't be taxable. If it's cashback on items you've purchased for your business or employment, then it is. Instances where you get cashback for no outlay may also be taxable especially where multiple transactions are made. This topic was discussed in more detail here: Cashback and the Taxman and here: Should I be declaring my rpoints for tax purposes?

I was wondering this too after reading the FAQ on the 'Cashback Rewards' site:


Do I have to pay tax on my rewards?

You may have to pay tax on your Cashback. It is your responsibility to declare your earnings to the Inland Revenue and pay any taxes that may be due.


As I am PAYE at work it would seem stupid to have to go through the faff of self assessment simply to declare the few pounds I make through Quidco and a couple of other similar sites.. Thanks to all above for clearing it up, looks like Cashback Rewards are just covering their backs and in the process confusing the rest of us!