Bought business furniture, and got £100 quidco, should the quidco amount be declared?

Legacy_user

We bought a few thousand pounds of business furniture and pcs. We bought through the cashback website quidco...and got around £100 cashback.


Should this cash back be put into the business accounts or ignored and seen as personal?

What do you think? What is legal?!

zygurat789

berbastrike wrote: »

We bought a few thousand pounds of business furniture and pcs. We bought through the cashback website quidco...and got around £100 cashback.


Should this cash back be put into the business accounts or ignored and seen as personal?

What do you think? What is legal?!

The cashback is part of the original transaction

martindow

It's an interesting question. A lot of people have credit cards that they use for occasional business expenses which are then charged back to the employer or put into their accounts as an expense for a sole trader. Should cashback, airmiles, John Lewis vouchers, etc. acquired via the card be somehow put into the business accounts?

InsideInsurance

berbastrike wrote: »

We bought a few thousand pounds of business furniture and pcs. We bought through the cashback website quidco...and got around £100 cashback.


Should this cash back be put into the business accounts or ignored and seen as personal?

What do you think? What is legal?!

What is the legal structure?
Who's is the quidco account?

I buy things for my Ltd and then reclaim the costs as expenses. The Quidco cashback or Avios points earned etc are mine personally and not the companies and so dont need to be declared in any way.

colino

So you think that an item purchased for a business can only have a bit of the transaction recorded?

Mistral001

This seems to be a discount. But there must be a lot of people not declaring these discounts. Is that why they have become popular I wonder?

doningtonphil

It is quite easily hidden. The cash back from quidco/top cash back is entirely separate from the transaction.

I buy £50 worth of office equipment from euroffice. The invoice is for £50 and the company debit card is debited £50. You can even do the transaction logged in as a business account.

However, rather than typing https://www.euroffice.co.uk to get to the site you type https://www.topcashback.co.uk then click on euroffice. Just for doing this you personally get paid £3-4. Not bad. That is a personal transaction that no one else need know about.

I am sure by now that if hmrc had spotted millions of people using cash back websites to earn what they belive should betaxable income, I am sure they would have sorted it or by now.

In my view. It is an ethical question. Do you chose a supplier to get the best price for the employer or do you choose the one that earns you most cash back?

colino

If you actually want it to be crystal clear and have no interest by HMRC, you buy the goods, get whatever discount, cash-back, commission or reward and then sell them to the business.

zygurat789

colino wrote: »

If you actually want it to be crystal clear and have no interest by HMRC, you buy the goods, get whatever discount, cash-back, commission or reward and then sell them to the business.

This would only work if the business is an Ltd and then you would lose the VAT, if registered, and you are selling second hand goods, so not at the full price.