How would this payment be treated?
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MTJR
Registered Posts: 33 Regular contributor ⭐
Hi,
Can anyone help me with this?
A sole trader client has received “payment for credit turnover at 1% Cashback” in their Santander bank account.
“This gives value back to businesses, paying cashback on their account turnover. The amount of cashback grows as their business grows, with a maximum reward of up to £300 per annum. The rate of cashback is tiered at 1%, 2% or 3% dependent on the amount of money paid into their account, the annual credit turnover”
How would this be treated in the accounts?
Thanks
Can anyone help me with this?
A sole trader client has received “payment for credit turnover at 1% Cashback” in their Santander bank account.
“This gives value back to businesses, paying cashback on their account turnover. The amount of cashback grows as their business grows, with a maximum reward of up to £300 per annum. The rate of cashback is tiered at 1%, 2% or 3% dependent on the amount of money paid into their account, the annual credit turnover”
How would this be treated in the accounts?
Thanks
0
Comments
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As it is a receipt from the bank, I would classify it as "Bank Interest".1
