Friend using Cashback websites for work purchase

[Awebby1985]

Hi, long time lurker on MN but first time poster! Met a friend for lunch on Saturday a whilst chatting about work, my friend mentioned to me that as her work as a PA/assistant she frequently makes hotel/travel bookings for her team of around 30 people and said that when making these bookings always uses her personal online cashback account/website to make the bookings and makes around £200 a month from this.

So my question is, is my friend doing anything wrong? She is not stealing anything from the company as the travel would still need to be booked regardless?

Things have moved on

I used to get glasses from the petrol station when driving a company car and with the company paying for petrol.

Couldn't get done for it as visited the bosses house which was filled with petrols station glasses and other freebies

I'm really surprised at how many replies saying this is sackable etc.
My husband works for a large company and travels all over the country. Not only does he book with his own Tesco credit card so he can claim the points, rather than through the online system work provide, he also gets points on stays and we stay in loads of hotels for free as a family. Perk of the job and no one bats an eyelid!

Last Christmas I offered to do all the shopping for work, spending £2k in tescos and told everyone I was only volunteering so I could get the Tesco points. It's paid for our family merlin passes this year.

As I said in last post, this is on top of my using top cash back and Boom25 for anything work need me to buy. I work for a large Christian organisation and neither I nor any of my managers see anything wrong with this as long as you're not taking the mick and booking more expensive places to get better point.

I think leave your friend alone, she's fine and none of your business.

This guidance from HMRC discusses air miles and credit card points. Assuming that cashback is treated similarly I don't think it would be taxable.

That doesn't mean that her company would be happy with it, however.

If she works in the public sector it will almost certainly be a sackable offence. I am allowed to collect airmails but only allowed to spend them to "offset the cost of official travel", i.e. not for personal use, only to reduce the cost of work flights.

She should check their travel & subsistence, and their bribery & corruption policies as it will probably be covered there.

I can understand, especially in public sector jobs, why for the sake of transparency and avoiding the possibility of allegations of corruption this is forbidden. Not because someone is acting corruptly, but because they want to ensure that it doesn’t even look possible.

However in a private organisation I can’t see why the company would care (unless it wants to collect the points itself) and I’m at an absolute loss to see why people think this is immoral?

Sorry that should also read: on the proviso that people are not purchasing more expensively for the sake of cash back/points etc. As long as people are shopping how they would otherwise and getting cash back on top, what’s the problem?

It is a perk of the job she gets that nobody else does, however, she would be very unlucky to be found out?

In my profession, it would been a no-no.

DH's old company allowed you to accrue personal airmiles and cashback when claiming expenses, so long as it didn't impact the choice of product/seller.

In places I've worked, everyone books their own travel.
We're instructed to get the best deal (book early etc) but also allowed to keep any cash back.

For the people who travel a lot, it's not a bad deal - I'd rather spend more time at home though.

Depends on the company .

At my company I am allowed to use my personal Amex for expenses 🙌🏻 everyone does it

It would be a sacking offence where I work.

The large stationery supply companies frequently have offers in their catalogues, such as buy a certain number of boxes of envelopes and get something for free (in my case it was a bread maker - I bought it for my own business btw). The invoice/receipt does NOT show the free gift (breadmaker) at all. They have done it quite deliberately so that whoever is responsible for purchasing cannot get caught out.

"I’m at an absolute loss to see why people think this is immoral?"

lets suppose....

Soho Airways has a ticket at list price £1,000.

They put on a Summer Sale promotion, cutting the price to £955

Or, they credit the customer account with £45 to use against future business.

Or, they repay a cash rebate of £45

Who is the customer?

Who does the £45 belong to?

Piglet, that's not how cashback sites work. The price you pay is the price you pay, there is no discount. Stopping using the cashback site will not reduce the bottom line price.
You'd thing this was the great train robbery from some replies, gees.

Every single member of the team I used to look after has an Amex that they use for work expenses- they are raking in the rewards and air miles! I wouldn’t see this as being any different personally.

It wouldn’t bother me as the company is spending the money either way, so I guess it depends on how it’s outlined (if at all) in company policy.

*lets suppose....

Soho Airways has a ticket at list price £1,000.

They put on a Summer Sale promotion, cutting the price to £955

Or, they credit the customer account with £45 to use against future business.

Or, they repay a cash rebate of £45

Who is the customer?

Who does the £45 belong to?*

There are 2 issues I can see here:

Using a more expensive website to get a benefit, which is what is classically called a kickback- this is clearly corrupt and wrong.

Or:

Using a cash back website to purchase the same thing you were going to purchase anyway, at the same price. I can buy a box of widgets for £10 from Tesco or Sainsbury’s. Having a nectar card, I choose sainsbury’s.

Now- if my boss has said “go to Sainsbury’s and buy a box of widgets and here’s my nectar card” then yes, it’s his prerogative- after all you’re spending his money.

But if he doesn’t care and the company doesn’t have a nectar card, what is immoral about using your own?

Technically it's wrong but who cares. Let her get on with it.

I've done this plenty of times with airport parking for work. Gotta claim the perks where you can!

Stackable offense where I work

Does your friend work for a big or small company ?

Stuff like this being against company policy is why so many people are unhappy in their jobs. I don't go to work to be treated like a naughty child.

"We aren't even allowed to accumulate airmiles on work flights, let alone get cashback."

That's such bs. Why? What possible benefit does this have to the company? My husband used to get loads of air miles as he travelled abroad weekly, he was really happy at that company and worked hard for them, so they saw it as a benefit for him and a good way of rewarding all the time away from home.

piglet if a company is worried about 45 quid, they have bigger issues than someone getting cashback.

I'd rather have happy employees who I treat like adults. Checking that hotel or flight prices haven't massively increased under that person's employment is all you need to do.

Legally, it's a taxable benefit. There have been clampdowns on exactly these sort of situations, along with getting loyalty points when filling up with fuel - legally, the value of these rewards belong to the company & any financial value gained from an employee is therefore a taxable benefit.

rainbow given how much tax big companies avoid, I can't get excited about someone getting 200 quid a month untaxed.

Maybe not, but HMRC seem to focus investigations on individuals & smaller Co rather than the really big ones because they are easier to get £ from - they don't have a fortune to pay specific advisors to get them out of paying for the £m tax they should pay; it's cheaper & more effective for them to go after smaller entities.

Usually ( IME) people book their own travel / accommodation ( but speak of large company / corporations) - to be booking 30 peoples' travel and accommodation and claiming "rewards" on that to a personal account is unusual & I would say firstly whether the company is aware and happy with it , and then whether HMRC happy - if both happy hey ho - - but then I am retired now so what do I know.