In certain jurisdictions these are frowned upon. However, in the UK they are not in themselves illegal (assuming that they are not simply disguised bribes) – though they create an environment for potential mischief…

How do SPIFFs get taxed?

SPIFFs are taxable income. You just will not pay the self-employment taxes (Social Security/Medicare) on that income. The issuer also does not withhold income taxes on the payments meaning you will pay the income taxes via your tax return or quarterly tax payments if you choose.

What is a spiff in Britain?

spiff in British English

(spɪf) slang. noun. 1. a commission for the selling of dated merchandise.