Tax on Discounts

perfect10nandb

Hi.

Does anyone know when calculating my profit/loss for self-assessment do I include the value of discounts I have given in my total income, even though I didn't receive the money?

I offer student and OAP discounts, I also run a loyalty scheme where clients get £1 back for every £10 they spend with me.

Thanks

Mistral001

Only include the actual amount you receive as income.

You sell something at £100 with 10% discount. Your income is £90.

perfect10nandb

Thanks so much. I have been really worried about this!

00ec25

you are taxed on income physically received,
what you tell your customers about your prices is simply smoke and mirrors to make them think they are getting a "good deal"