I recently joined a savings provider and will receive a 'welcome bonus' presumably this will be taxable? If so, will this count as income or savings interest?
Can you advise if you run a trade ,if its not "interest" and its trade related its likely to be taxable and will need to be reported in the same manner as any other business income - if its "interest" it will be delared as appropriate based on business type
If not trade related i would probably seek advise from the instiution themselves as first point of call to clarify payment type and tax treatment from their point of view and the read guidance they provide - use that as a starting basis to follow info below and make your ultimate decision.
Unfortuantely if in doubt directly questiong hmrc in writing is your best bet if you want to cover your back.
It is 100% unclear to me
whether "welcome bonus" is actually a "cashback" as referenced in bim100210 (if i had to guess i would say it probably is "cashback" if its directly related to switching - but thats pure guess and no more) or whether it may follow along the lines of "reward payments" which themselves have somewhat variable tax treatment.
the clearest advise on the subject of reward payments is probably available here - there are 3 options.
Hopefully this somewhat confusing advise evidences the somewhat inconsistent and variable treatment of what can be very similar "payment types"
Note if it is misc income you may have a get out clause here in that you can have £1000 Total (all sources) of miscellaneous income each tax year without having to report that income to hmrc - so if it is taxable but deemed miscellaneous income and you sum total of miscellaneous income is under 1k no action needed and no tax will be due.
Similarly, the provider offers referral bonuses so that my friend and I receive bonus each, again presumably this is taxable, is this income or savings interest?
As per link supplied by bd6759 the advise is fairly clear - this is likely to be income of trade if you have trade or miscellaneous taxable incoem if not (in which case it may be covered by £1000 misc income exemption)