How would this payment be treated?

MTJR

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

davealucas

As it is a receipt from the bank, I would classify it as "Bank Interest".