Tax on Cashback?

A question about : Tax on Cashback?

Is tax payable on cashback earned from 1-2-3 current accounts or credit cards?

Just wondering.

Best answers:

• Not currently.
• Thanks! Thought so but wasn't sure.
• What if sinizterguy is wrong?
• For the Santander 123 current account :-
  I am paid interest and charged for income tax upon this at the standard rate deducted at source.
  An R85 form can get the tax back retrospectively if the tax was applied to an account where the.holder had unused allowances against tax on earnings
  For my Halifax bonus rewards I believe it is tax free. I could be wrong Perhaps Halifax are paying tax on this ? I do not know.
  J_B.
• If it were to be treated as income & taxed then you then not offset the Ј2 a month fee as an expense?
• Interest is taxable.
  Halifax reward payments are taxable.
  Cashback payments linked to a transaction value are tax free.
  Where tax is due, 20% has already been deducted at source for the examples in this thread. Those who pay tax at a higher rate have a further liability.
• My answer was in reply to the credit cards.
  I did miss the part about the 123 accounts.
  I have absolutely no idea about those.
• And that Ј1.25 per month tax can be reclaimed if you are not a taxpayer.