Quidco cashback taxable income?

Lorian

I know this has probably been asked, but I can't see it.

Should I declare quidco cachback as taxable income?

Mikeyorks

No. As it's basically a discount from money you are paying .. i.e it simply reduces the price, it isn't income.

Ivenofinmoney

Mikeyorks wrote: »

No. As it's basically a discount from money you are paying .. i.e it simply reduces the price, it isn't income.

Not sure I agree with this ?

The money is not coming direct from the retailer it is a commission that's paid to quidco, which they effectively pay on a portion to you.

The inland revenue will allow up to £300 a year for earnings outside of your main income, so as long as you haven't been to bonkers on quidco you should be OK ?

reddevilled

Ivenofinmoney wrote: »

Not sure I agree with this ?

The money is not coming direct from the retailer it is a commission that's paid to quidco, which they effectively pay on a portion to you.

The inland revenue will allow up to £300 a year for earnings outside of your main income, so as long as you haven't been to bonkers on quidco you should be OK ?

I cannot see how it could be taxable - what would it be taxed as? It's not a trade, it's not interest, it's not employment?


As Mike says it is simply reducing the amount you pay (which is out of taxed income) and should therefore not be taxable.

I'd be interested if anybody had any practical examples to the contrary though.

Bean_Counter

reddevilled wrote: »

I cannot see how it could be taxable - what would it be taxed as? It's not a trade, it's not interest, it's not employment?

Completely agree.

*MF*

See earlier thread ...

Here:

http://forums.moneysavingexpert.com/showthread.html?t=771527

Mikeyorks

Ivenofinmoney wrote: »

Not sure I agree with this ?

Ah ..... but HMRC agree with me. See earlier threads (kindly provided above).

Slight distinction if you use cashback sites significantly for business gain ... but the average individual can Quidco themselves to death - without fear of taxes! That's certain.

johnllew

Mikeyorks wrote: »

No. As it's basically a discount from money you are paying .. i.e it simply reduces the price, it isn't income.

Not necessarily; see:

johnllew wrote: »

It depends what it is for. If it's cashback on personal purchases then it won't be taxable. If it's cashback on items you've purchased for your business or employment, then it is. Instances where you get cashback for no outlay may also be taxable especially where multiple transactions are made. This topic was discussed in more detail here: Cashback and the Taxman and here: Should I be declaring my rpoints for tax purposes?

If you browse the forums here, you will see a lot of members discussing amassing considerable amounts of cashback by daily clicking at numerous cashback sites; it's very popular and is undoubtedly taxable income.

Ivenofinmoney wrote: »

The inland revenue will allow up to £300 a year for earnings outside of your main income, so as long as you haven't been to bonkers on quidco you should be OK ?

I think you are confusing the Tax Credit rules with Income Tax; there is no such allowance for IT purposes.