toast
Member of DD Central
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Post by toast on Apr 28, 2019 11:58:13 GMT
How do I determine if AC cashback and refer a friend bonuses are taxable? Some other platforms clearly list refer a friend payments as taxable (e.g. RS, Zopa), but I don't see an explicit mention of this for AC.
The AC tax statement clearly lists interest as taxable with the note that "This is the amount of money that you may have to declare and pay tax on in your HMRC Tax Return" and whilst the tax statement does make mention of other income there is no corresponding similar note. Classing it as "income" does kind of imply that it is subject to income tax though.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 28, 2019 12:18:27 GMT
How do I determine if AC cashback and refer a friend bonuses are taxable? Some other platforms clearly list refer a friend payments as taxable (e.g. RS, Zopa), but I don't see an explicit mention of this for AC. The AC tax statement clearly lists interest as taxable with the note that "This is the amount of money that you may have to declare and pay tax on in your HMRC Tax Return" and whilst the tax statement does make mention of other income there is no corresponding similar note. Classing it as "income" does kind of imply that it is subject to income tax though. Ask HMRC as there is certainly some dispute whether RAF cashback/bonus are taxable as opposed to standard loan CB incentives which generally is considered not to be. IIRC there is a post from someone who asked as was told it wasn't but probably best to get your own advice. AC won't provide it.
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Post by hammertime on Apr 28, 2019 14:54:04 GMT
No move to the channel islands you wont pay tax then.  . |
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p2pmark
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Post by p2pmark on Apr 28, 2019 17:09:21 GMT
According to Lending Works: How are cashback/promotion credits treated for tax purposes?
We’re often asked this, and the answer depends on both the nature of the payment and your personal circumstances (for example if you are investing through a company or in the course of your business), but we’ve provided a general summary below: “Refer a Friend” bonuses
Any payments received by an existing customer “referring” a friend or relative could be liable to income tax and should be declared as income to HMRC. However, any payments received by a new customer as an inducement to join Lending Works would generally not be liable to income tax and therefore wouldn’t need to be declared as income to HMRC. Further guidance from HMRC on miscellaneous income can be found here. Promotion/incentive and “other” account credits
Promotion/incentive and “other” account credits generally relate to one-off cashback promotions or adjustments to your account and are generally not liable to income tax. Therefore, these payments wouldn’t need to be declared as income to HMRC. Further guidance from HMRC on “cash-backs” can be found here. Who can I contact for additional help?
If you need further help with declaring your income please contact either an independent financial or tax advisor or HMRC, whose details are set out on their website at hmrc.gov.uk. Hope this is helpful. |
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cb25
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Post by cb25 on Apr 29, 2019 7:31:53 GMT
p2pmark The two links you've provided seem to be the same.
Small mention by HMRC on "Customer rewards and ‘cashback’" (bottom of page) here
Article (albeit 2017) about AC and taxing of cashback here
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p2pmark
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Post by p2pmark on Apr 29, 2019 10:37:40 GMT
Yes, they're the same in the LW document I copied it from.
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dave2
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Post by dave2 on Apr 29, 2019 13:16:57 GMT
No move to the channel islands you wont pay tax then. . Not true, you will still be liable for tax on UK savings income, which includes UK based P2P.  www.gov.uk/tax-uk-income-live-abroad
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