MSE News: Should I save in Santander's 123 account or put the money in a cash ISA?

ericthelobster

masonic wrote: »

Cashback is not taxable because it is treated as a discount applied to something you have purchased.

Even though said discount comes from the bank, not the utility company?

colsten

ericthelobster wrote: »

on what basis is money paid to me by Santander as interest taxable, whereas money paid as cashback is not?

Most people wouldn't declare a discount on a bill as taxable income as there is no law that requires you to do so. If you prefer to declare your cashback as taxable income and pay tax on it, you are free to do so.

ericthelobster wrote: »

(Presumably the Santander monthly account fee cannot be offset against tax?)

No it cannot

masonic

ericthelobster wrote: »

Even though said discount comes from the bank, not the utility company?

Yes, anyone in a supply chain can offer a discount, even if they do so at a loss. In fact, loss making discounts are not all that uncommon.