Other income on your CT600: one-off receipts, box 205 and cashback

Short version. Taxable income that fits no other row of your return goes in the Income not falling under any other heading row of the profit and loss step. It files in box 205 of your CT600, appears within Other income in your accounts, and is taxed at the same Corporation Tax rate as the rest of your profits. Cashback earned on business spending is different: deduct it from the expense it relates to, as in section 4.

1. What counts as other income

Most of what a company receives has a row of its own: sales go in Turnover, rent in Income from property, interest in Interest receivable. Occasionally a company receives something that is genuinely none of those, usually a one-off. HMRC still taxes it, and the CT600 has a box for exactly this: box 205, income not falling under any other heading. Enter the amount, add a short description of what it was for, and confirm it does not belong in another category. We take care of the rest, including the CT600 box, your accounts presentation and the working shown in your tax computation.

2. Common examples

• A one-off referral, introduction or finder fee. A design agency is paid £250 for introducing a contact to a recruiter. Introductions are not what the agency sells, so the fee is not turnover. It is still taxable and belongs here. If your company earns commission as part of its normal business, that is turnover instead.
• A casual receipt from an isolated piece of work. A joinery company is paid a one-off fee for letting a film crew photograph its workshop. It is not part of the trade, but it is taxable income and belongs here, with a description saying what it was.
• A cash bonus from your business bank. A fixed promotional reward for opening, switching or paying into a business account, where the amount is set by the promotion rather than worked out from your balance, a rate or how long the money stays deposited, and it is paid separately into your current account. These are taxable for a company even though similar bonuses on personal accounts are usually tax free for individuals. Anything calculated from a balance, an interest rate or the length of a deposit is interest, however the bank labels it, and belongs in Interest receivable instead (box 170). Interest credited to a business savings account always goes there.

3. What does not belong there

Most income already has a row of its own, and using the right one matters because HMRC taxes each income type under different rules:

• Sales of goods or services, including commission your company earns as part of its normal business, belong in Turnover.
• Bank or other interest, and any return worked out from a balance, rate or length of deposit, belongs in Interest receivable and similar income, which files in box 170.
• Rent belongs in Income from property, which files in box 190.
• Dividends received have their own row.
• Profits on selling assets belong in Profit on disposal of fixed assets or Chargeable gains.
• Cashback or a rebate linked to particular spending reduces that expense instead, as in section 4.
• Grants have their own accounting and tax treatment, which depends on the grant. Please contact us before filing if the company received one.

4. Cashback on business spending

If cashback relates to particular business purchases, treat it as a discount on that spending rather than as income. Cashback on a business card or a rebate on charges reduces your Administrative expenses figure. Cashback on stock or materials reduces Cost of raw materials and consumables. Your profit, and therefore your tax, comes out correctly either way, and your turnover stays a true sales figure.

5. Other income in your accounts

Your FRS 105 accounts show an Other income line within operating profit. It can contain two different things: a profit on selling a fixed asset, and any amount you entered as income not falling under any other heading. They look the same in the accounts but are taxed differently, which is why the filing keeps them as separate entries. The asset profit is dealt with through capital allowances, while the box 205 amount is taxed as it stands.

6. If you are not sure

If you cannot tell whether a receipt is trading income, interest, a rebate or something else, do not guess. Send us the details through support, including who paid it, how much, and how it was worked out, and we will confirm the right place before you file.

This article is general guidance, not tax advice. If your situation is unusual, speak to an accountant or contact us before filing.