What Is and Isn't Taxable in the UK: A Comprehensive Guide
Knowing what to pay tax on can be confusing. So I wrote this guide to help you understand what’s taxable, what’s not, and how to make the most of your allowances. Whether you’re earning from online surveys, cashback, or referrals, this guide covers everything you need to know about UK taxes.
Key Beermoney Tax Takeaways
- Everyone can earn up to £1,000 per year from casual earnings tax-free. This is called the trading allowance.
- Welcome incentives, like bank switch bonuses, are not taxable. HMRC treats them as incentives to do business.
- Cashback from purchases is not taxable. It’s treated as a discount, not income.
- Gambling winnings are not taxable in the UK.
- Income from surveys, user testing, or selling data is taxable.
- Referral bonuses are taxable unless they reduce the cost of a transaction.
- GPT (get-paid-to) bonuses are taxable unless they reduce the cost of a transaction.
- You must declare beermoney/side-hustle earnings to HMRC if your casual income exceeds £1,000 annually.