Rebate sent from different company than supplier

I have a mobile phone contract through o2 who I pay monthly. An intermediary company (not o2) issue me a rebate once in a while and I don’t know how to allocate this payment. Can anyone give me some advice please?

Hi @richardsonsphoto

What’s the relationship with the intermediary company? E.g. what’s the purpose of them paying you the rebate?

They are called WinWin Management and they procure deals with 02 so you get cheaper rates. Effectively a middle man between me and 02.

Ok, so it’s like a cash back type setup then?

If that’s the case, you should be able to tag it to “Misc Income” (4900).

Do you have to invoice them before this is paid to you, or do they just pay it straight into your account? Are you VAT registered?

Yes, I suppose it is a cashback scheme in effect. No, I don’t have to invoice them, it’s just paid direct to my bank and will happen a few times a year for 3 years. I am vat registered but I can’t claim vat on this as I use the flat rate scheme. Thanks very much for your help!

Misc Income should be fine (there’s another post here), although I would raise it with your accountant at year end just to be sure that it’s all accounted for correctly (and just to be sure :slight_smile: )

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Definitely check with an accountant, and now rather than waiting til year end - the cashback payment is income for you so far from “claiming” anything you may have to pay VAT on it by including it in your flat rate turnover for the current quarter (which in QuickFile would mean treating it as a sales invoice for the total amount as gross, including VAT). Someone who knows all the ins and outs of the flat rate scheme would be able to tell you for sure.