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Tax implications of cashback on credit cards?

3 replies

Lexilicious · 10/02/2012 14:55

Anyone an accountant or had this issue before?

I vaguely recall there is a definite ruling somewhere that air miles accumulated on business flights are a taxable benefit alongside salary.

If I was to use a personal credit card for company expenses (and the company were happy with this) what should the tax treatment be of the value if the cashback? It's 6% so not to be sniffed at on monthly throughput in 4 figures.

OP posts:
MrAnchovy · 10/02/2012 17:52

Provided it is a benefit that is available to anyone using the credit card there is no benefit. See here.

Lexilicious · 10/02/2012 19:00

perfect, thank you. (and thanks for not pointing out I could have just googled!!)

OP posts:
MrAnchovy · 11/02/2012 10:18

Googling HMRC is dangerous - without a solid knowledge of the taxation framework and of how their site works you can't be sure that what you are looking at is relevant - it might only relate to the self-employed, or to Corporation Tax, or National Insurance, or tax years before a certain date.

Hope that makes you feel better Grin

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