Good evening everyone,
I have just been preparing a SATR & have come across something I have not seen before and was wondering if it is taxable income or not and if so under what classification.
On clients bank account the income is described on the bank statement as follows "3 direct debit payments for Comms at 3% Cashback"
If you add up the d/d payments on the statement and multiply the total by 3% you guest it the figure you get is the income received on that statement.
As I said I have never come across this before, the bank has not issued the client with any tax certificate.
So the question is, is it taxable income or not and under what class of income should it be treated?
Any help is appreciated.
Regards
Mark
Replies (6)
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This is Santander personal bank account where you pay you commission back on certain direct debits.
Comparable to?
Halifax bank a/c : £ 5 per month "bonus" for meeting certain criteria is net of tax - Halifax refuse to pay it gross on authority of signed R85 on the basis of it "not being interest".
Then they say that they must deduct tax as it is like interest.
The DO provide a s975 certificate at the tax year end - £ 75 gross less £ 15 tax = £ 60 net.
Some credit cards give a cashback - never heard of it being taxable in a personal card situation, but can see an arguement of it being taxable where it arises from business expenditure.
So, the question remains - has HMRC formed a view on the Santander 123 account's cashback commission? Has Santander sought HMRC's authority to pay it gross?
CASH BACK FROM SANTANDER
Last post 2013. It is going to be 2016 in a few days. Any one got answers yet.
Thanks
Thaya
Cash back from Santander - this may be helpful
http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards...
Apparently not taxable