Do I have to pay tax on cashback?
In most cases, no. Cashback on your own purchases is generally treated as a reduction in the price you paid, not as income. So the money you get back on your own orders usually isn't something you pay Income Tax on.
We don't deduct any tax from your cashback.
When it may be different
- Purchases for a business. If you buy for your business or for your work as a self-employed person, the cashback reduces your costs and belongs in your business accounts. The same applies if you claim a purchase as an expense: the cashback reduces what you can claim.
- Rewards for inviting friends. You don't receive a referral bonus as a discount on your own purchase, but because someone joined through your invitation. HMRC may treat rewards like this as income rather than as a discount, especially if you receive a lot of them.
- Other rewards without a purchase of your own. The same can apply to money you receive without having bought anything yourself.
This is not tax advice
We are a cashback site, not a tax adviser. If you're unsure about your own situation, check the information on GOV.UK or ask a tax adviser.