Taxable income or Not

Taxable income or Not

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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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By mrme89
15th Jul 2013 22:32

Isn't it just classed as a discount to the direct debits?

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By murphy1
16th Jul 2013 08:40

This is Santander personal bank account where you pay you commission back on certain direct debits.

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By oneillmark
16th Jul 2013 19:43

It is a Santander account, and they have told the client it is Gross income.

If they are paying you commission for effectively paying household bills by direct debit, is it taxable income?

I am still unsure of how to treat it

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By DMGbus
16th Jul 2013 21:13

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?  

 

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By Thaya10
21st Dec 2015 09:54

CASH BACK FROM SANTANDER

Last post 2013. It is going to be 2016 in a few days. Any one got answers yet.

 

Thanks

 

Thaya

 

 

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By MrsG
13th Apr 2016 11:13

Cash back from Santander - this may be helpful

http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards...
 

Apparently not taxable

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