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Taxable cashback
nimbus_t
Posts: 17 Forumite
Hi everyone, not been on here for a while, but I'm a bit puzzled about something and I was hoping someone here will be able to help.
My question: Is cashback taxable in the UK? this is not credit card cashback on purchases, but cashback on all transfers made from an online wallet to their merchants. eg: deposit £1000 with a bookmaker, get £10 cashback in your online wallet. So if you withdraw that money from the merchant without losing any of it, you end up with a £10 profit.
I assume it probably is taxable, but as it's to do with gambling I'm not really sure. I have steadily been making money from a cash-back offer over the last few months, however, many people will deposit with a bookie and they won't withdraw as much as they deposited. Say you deposit £1000, get £10 cash-back paid into your online wallet, but then lose £100 before withdrawing your money. So you end up with £910 in your account. Is the £10 cash-back taxed as a separate entity to the money you have transferred to the merchant, or does it count as cash-back on a purchase in the same was as credit card cash-back deals?
Apologies, I feel like I've managed to ask a fairly straightforward question in a complicated way there! I'd be extremely grateful for any help.
My question: Is cashback taxable in the UK? this is not credit card cashback on purchases, but cashback on all transfers made from an online wallet to their merchants. eg: deposit £1000 with a bookmaker, get £10 cashback in your online wallet. So if you withdraw that money from the merchant without losing any of it, you end up with a £10 profit.
I assume it probably is taxable, but as it's to do with gambling I'm not really sure. I have steadily been making money from a cash-back offer over the last few months, however, many people will deposit with a bookie and they won't withdraw as much as they deposited. Say you deposit £1000, get £10 cash-back paid into your online wallet, but then lose £100 before withdrawing your money. So you end up with £910 in your account. Is the £10 cash-back taxed as a separate entity to the money you have transferred to the merchant, or does it count as cash-back on a purchase in the same was as credit card cash-back deals?
Apologies, I feel like I've managed to ask a fairly straightforward question in a complicated way there! I'd be extremely grateful for any help.
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