Post by bagsy on Apr 7, 2019 10:14:54 GMT
Just trying to complete my Self Assessmnent for 2018-19 and have a query. If you invest in a loan on reserve then when the loan goes live Kuflink pay a small amount of cashback for the period between reservation and loan going live. On the list of transactions they describe it as "Reserve Cashback - Interest cashback for xxxxxx St".
Anybody know what the correct treatment of this cashback is for self assessment tax purposes? I'm not convinced it meets HMRC's definition of interest so don't think it gets added to total untaxed interest (especially as Kuflink don't include it in the interest figure on the end of year tax certificate). So to my mind it is either a) taxable as Other Income (as a commission or similar) or b) not taxable as it can't be regarded as a commission or annual payment but is in essence a form of discount. I'm erring towards taxable as its a form of contractual payment rather than an inducement. Anybody dealt with this and have any views? Thanks
Anybody know what the correct treatment of this cashback is for self assessment tax purposes? I'm not convinced it meets HMRC's definition of interest so don't think it gets added to total untaxed interest (especially as Kuflink don't include it in the interest figure on the end of year tax certificate). So to my mind it is either a) taxable as Other Income (as a commission or similar) or b) not taxable as it can't be regarded as a commission or annual payment but is in essence a form of discount. I'm erring towards taxable as its a form of contractual payment rather than an inducement. Anybody dealt with this and have any views? Thanks
