James Peewee

Thank you HMRC Admin 5 That is crystal clear

Now that is crystal clear. Thank you HMRC Admin 32

Hi MRJ (or anyone else) good post. I can't find the HMRC clarification you mention at https://community.hmrc.gov.uk/customerforums/sa/6caf4980-84e5-eb11-ba5e-00155d9c7f52. Unfortunately, whether I put the last part of it into the forum search or the whole of it into a new browser tab, I just get a customerforums search page with lots of hits but none about cashbacks. Are you able to provide the title of the post so that I can search on that? Kind regards James

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.

Sorry my previous post had an error. I said "having 2 debit cards " whereas I note that JCC said " two Direct Debits". I don't think that typo changes the points I am making. 

Hi HMRC Admin 17 It might help us to explain why you believe this income is still taxable. Your link to Savings and Investment Manual goes to 'SAIM8020 - Annual payments: meaning of annual payment - Characteristics of an annual payment'. That sets four tests that must be satisfied for Customer Rewards/Cashbacks to count as an Annual Payment. It doesn't mention "Paying a fee" as one of the tests. So I imagine that JCC's description leads you to conclude that he is getting the Loyalty Reward just for having 2 debit cards AND not having to do anything else to earn the reward. Therefore it qualifies as 'Pure Income Profit' (Test 4, "It must represent pure income profit to the recipient. A sum is ‘pure income profit’ if - like interest - it comes to the recipient without he or she having to do anything in return.") I have a Santander 123 account and pay £5 per month fee for the privilege of having the account. With it I earn Cashbacks on certain transactions (not all) and the Cashbacks vary in amounts and consistency. I have to make certain purchases and pay certain bills to earn Cashbacks. So I am having to do things in return, and there are no Cashbacks if I do not make those certain purchases/payments. I believe this fails Test 4 and therefore my Cashbacks are not Annual Payments and therefore not Taxable as Income or Other Income. Do you agree with this? Kind regards, Tarp