Credit cards cash back

moneyh

Hello,

I was wondering whether the cashback earned from creditcards is taxable? Can anyone answer my query please?

Thanks
Harsha

[Deleted User]

No it isn't (as it isn't income)

Kristin

Hi

Does anyone know which card is offering the most cash back? I am in the fortunate position, at the moment, to be able to pay my credit card debt off in full at the end of each period. This general means credit card companies pay me to use their cards. I don’t want to pay an annual fee but I am interested in both long term cash back offers and introductory rates.
Any help would be great.

R34GTT

The Aqua Reward card offers 3% cashback upto £100 per year.

Kristin

Thanks for the info. Unfortunately the limit of £100 makes it unattractive. Is there a card that pays a similar rate of cashback but does not have a limit?

moneyh

How about promotional offers' like santander 200£ cashback' for opening a current account & cashback from cashback websites? Do we have to pay tax on these?
H!

Kristin

No take is paid on those as they are not classed as income.

YorkshireBoy

moneyh wrote: »

How about promotional offers' like santander 200£ cashback' for opening a current account & cashback from cashback websites? Do we have to pay tax on these?

Re your earlier credit card question, if the cashback is paid to the card account then it's treated as a rebate (based on spend) and so is not taxable*.

If you're paid in cash once per year (outside the credit card account), and also for your particular current account question, then things are a little more complicated. As such, you'd be best advised to check out the HMRC website and/or ask them your question.


* http://www.hmrc.gov.uk/manuals/saimmanual/SAIM8050.htm (see example 3)