Are giftcards taxable?

libra10

Through the year I complete various online surveys from different companies.  Usually these are paid by giftcards, Tesco, Amazon, Marks and Spencer, John Lewis etc.

If doing a tax return, would these be liable to tax , or is it just cash payments, Paypal etc?

Thank you

Stubod

As far as I am aware gifts are not taxable....??

elsien

Previous thread, at the end of which I’m not really any the  wiser.
https://forums.moneysavingexpert.com/discussion/6527452/tax-on-survey-incomes/p1

forwardnotbackwards

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

libra10

Thanks for the input and link @elsien

There do seem to be mixed feelings about this.  

I'm in receipt of state pension, though not full pension as I worked part-time for several years.  Therefore, have never needed to do a self-assessment.  I understand that if your personal income is less than £18,500 per annum (including various allowances), you have no tax liability and just wondering whether I would need to complete a tax return.

My earnings would still be under this amount, even with the vouchers.

Olinda99

gift cards can be converted to cash in the same way as any other asset

DRS1

So today I got a letter from the NHS inviting anyone in the house to participate in something called My Future Health (or something like that).  If I participate they will give me a £10 gift card.  Would that be taxable income?  Yes it involves answering health and lifestyle questions and probably a blood test but it is a form of medical exam and in such a case I would have thought it was the medical person doing the work not the "patient".  It is an academic question.  I have already shredded the letter.

subjecttocontract

I got that letter and took up the invite. Got a £10 gift card. I have no idea if it's taxable......If I don't know I tend to keep quiet.

masonic

One off incentives like that are generally not taxable. Same goes for things like bank account switching offers. Where you are entering into an ongoing arrangement, the situation is different and it can fall under various taxable categories of income, depending on the circumstances. As mentioned above, the income may need to exceed £1,000 in a tax year for it to carry a tax liability, while in other cases BR tax would be deducted at source (as it is for some Reward account payments that are considered annual payments). This could be done in the voucher scenario for example, by issuing a voucher after deduction of tax from the income earned.

Money_Grabber13579

forwardnotbackwards said:

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

When handed out by an employer, they are taxable as they are considered to be part of the earnings from employment. However, what will usually happen is that the employer will enter into a settlement agreement with HMRC to pay the tax on the employee’s behalf, so a £100 gift card might actually cost the employer £140 (haven’t done the exact maths on this).

RedImp_2

forwardnotbackwards said:

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

Hmm not sure but anyway at my workplace the company declares all these kinds of payments and pays the tax themselves