Tax on Discounts

perfect10nandb · 8 January 2019 at 6:53PM

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 · 8 January 2019 at 7:39PM

Only include the actual amount you receive as income.

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

perfect10nandb · 8 January 2019 at 8:07PM

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

00ec25 · 8 January 2019 at 8:08PM

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"

Tax on Discounts

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