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Posted Mon, 20 Feb 2023 12:34:45 GMT by James
Hi there, A high street bank is currently offering a cash reward for anyone that successfully refers friends or family to switch their current account to the bank. This reward is paid as cash directly into the referees bank account. Is such income taxable? I ask because there seems to be a lot of conflicting information about whether or not such income is taxable, including on this forum. One post on this forum suggests it is only taxable if it constitutes an annual payment, as defined here ( Is this correct? Kind regards, 
Posted Thu, 23 Feb 2023 17:03:48 GMT by HMRC Admin 32

It is still taxable however as ‘miscellaneous payment’. Banks do not have to deduct tax before paying you the cash reward, so you receive these rewards gross and the gross amount is taxable. These types of reward are not savings income, so they are not eligible for the PSA (or the 0% starting rate for savings).

Thank you.

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