Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 06 Dec 2021 15:18:17 GMT by Europefantasie
I am a resident in UK. May I know if the referral bonus I gained for referring my friends to join an bank account is taxable in UK or not? If yes, shall I report it under other UK income section? And if the date I signed the referral form is 30/3/2021 but the bonus fee was paid by the bank on 12/5/2022. So shall I report the tax under 2020/2021 or 2021/2021? Thanks.
Posted Mon, 06 Dec 2021 16:19:03 GMT by HMRC Admin 10
Hi

If this is a bonus from your employer then this would remain taxable.

If this is a reward or cashback from a bank etc then please see guidance here as to whether this would be subject to tax or not.

Savings and Investment Manual

Thankyou.

Regards.
Posted Mon, 06 Dec 2021 18:32:12 GMT by Europefantasie
Thank you for the link. I have read through it but I cannot get the answers. May I know the answers to my questions? It is rewards from bank for referring a friend to join their bank account. 1. Are these amounts taxable? 2. If yes, shall I report it under other UK income? 3. When are they taxable? The date I signed the referral form or when the money is received to my bank account? Thank you.
Posted Thu, 09 Dec 2021 13:51:21 GMT by HMRC Admin 20
Hi Europefantasie

If the 4 conditions outlined in the guidance do not apply then this will not need to be declared.

If this is a one off payment then it would not consitute an annual payment and would therefore not need to be reported.

Thank you.
Posted Sun, 06 Nov 2022 19:33:46 GMT by Eva
Hi if I receive the referral bonus I gained for referring 5 friends to join an bank account and get the referral bonus 5 times. Is it also considered as a one off payment and are not taxable? If I receive the lump sum of referral bonus for referring friends and earn more than £ 1,000 , should I need to declare to HMRC even though it is not taxable? Thank you for reading my message
Posted Thu, 10 Nov 2022 11:36:01 GMT by Andrew Williams
Hi,

Bank rewards are taxable income no matter the amount received and should de declared as other income. These payments are not treated as interest so are not covered by the savings allowance.

Thank you.
Posted Wed, 11 Jan 2023 11:44:34 GMT by James Peewee
Hmmm. I'm really confused now. HMRC Admin 20 says Bank Rewards are not taxable if they are not an Annual Payment but HMRC Admin 19 say they are taxable income.
Posted Fri, 13 Jan 2023 14:18:39 GMT by HMRC Admin 32
Hi,

Some bank accounts pay a loyalty reward each month to the account holder. These banking awards are taxable income, taxed as 'other' income. They are not classed as bank interest and do not count towards the personal savings allowance. The accounts where the customer receives 'cash back' as a result of purchases made, is not taxable.

Thank you.
Posted Fri, 13 Jan 2023 15:49:13 GMT by James Peewee
Now that is crystal clear. Thank you HMRC Admin 32

You must be signed in to post in this forum.