Cashback Legalities

Alpesh2404

Two questions:

1) I purchase a large sum of items from firm A via Quidco (or equivalent). I decide i do not like the product (a TV + accessories), and decide to return the item to that firm. the firm accepts the return and deposits the refund back into my account.

The question is that because i bought the item via quidco, the trasaction was 'tracked'. After about 2 months, the cashback item was "received" and eventually "paid".

Because i was paid this and i did not actually purchase any item in the end, is it possible for Firm A/Quidco (or equivalent) to demand the money back from me? Because it seems like firm A are just paying me for nothing (it was about £75 cashback!)? What can the two different firms do about this?

2) I purchase a large amount of products on the internet. Does the cashback add to any income? Do i have to account for it in anyway?

many thanks in advance

Astaroth

1) These depend on firstly the terms and condition of the affiliate scheme between Company A and Quidco... most affiliate schemes I have seen will reclaim commission paid for items that are subsequently returned. Secondary, if A's T&Cs are such that they reclaim the commission from Quidco it is then down to Quidco's own T&Cs which you have agreed to by signing up for the account on if that is a loss for them or if they recover the money.

From quidco's own site:

If a transaction is reversed by the merchant or network Quidco will not pay out the relevant cashback. Please see the FAQ section for more information on why transactions are reversed

This does make it a little unclear on the situation if it is already paid, ie will they dock it from future monies earned or will they seek to recover it directly.


2) I am by no means a tax expert. I would imagine that technically it should be declared but unless you already fill in a self assessment tax form or the monies earned really are significant then the government wouldnt be overly concerned but you should seek professional advise