How Cashback Sites Work in the UK — And Why They're Worth Using
- Jamie Reid - Credit, Loans & Everyday Money Writer
- Apr 7
- 5 min read
Cashback sites have quietly become one of the most effective tools for saving money online in the UK. With minimal effort, you can earn back a percentage of what you spend at thousands of retailers, from supermarkets and fashion brands to broadband providers and insurance companies.
But how do cashback sites actually work? And more importantly — are they really worth using?
This comprehensive guide explains the mechanics of cashback, breaks down the top UK platforms, and offers practical tips to help you maximise your earnings. Whether you’re new to cashback or looking to boost your current returns, this article will show you how to make it work for your wallet.
What Is a Cashback Site?
A cashback site is a platform that rewards you with a percentage of your purchase back when you click through their website to shop with a partner retailer. It’s essentially a form of commission sharing: the retailer pays the cashback site for sending them a customer, and the cashback site passes a portion of that money back to you.
You don’t pay anything extra — in fact, you pay the same price as you would by visiting the retailer directly.
How Cashback Works Step-by-Step
Sign up to a cashback website (usually free).
Search for a retailer or service you plan to use (e.g., ASOS, Currys, Compare the Market).
Click the link provided by the cashback site — this tracks your visit.
Make your purchase as usual on the retailer’s website.
Wait for confirmation — cashback will show as ‘pending’ before becoming confirmed and payable.
Withdraw your earnings via bank transfer, PayPal, or gift cards.
Read our guide on: Best UK Discount Code Websites for Everyday Savings
How Cashback Sites Make Money
Cashback platforms partner with retailers through affiliate marketing networks. When you make a purchase through the cashback site’s tracked link, the retailer pays the platform a commission. The cashback site then shares a portion of that commission with you.
Because of this business model, cashback platforms are free to use — they profit when you shop.
Are Cashback Sites Legitimate?
Yes — the major UK cashback platforms are well-established, FCA-registered companies. However, the cashback process isn’t instant, and it’s important to follow the rules to avoid missing out on rewards.
Top Tips to Stay Protected:
Always read the terms for each deal — exclusions are common (e.g. gift card purchases or voucher code use).
Don’t mix cashback with ad blockers or browser extensions that could interfere with tracking.
Keep screenshots of purchases just in case your claim doesn’t track correctly.
For added peace of mind, you can check that a company is regulated via the FCA Register.
Best Cashback Sites in the UK
Here are the most trusted and rewarding cashback platforms currently available in the UK:
1. TopCashback
Highlights:
Over 5,000 retailers including insurers, supermarkets, and tech brands.
“Highest cashback guarantee” — they’ll match and beat competitors’ rates.
Offers payout bonuses when you withdraw via gift cards (e.g. Amazon, M&S).
Bonus Tip: Their ‘Plus’ membership (£5 per year) offers increased cashback rates and faster payouts — worth considering if you’re a frequent user.
2. Quidco
Key Features:
Wide retailer coverage similar to TopCashback.
‘Quidco Compare’ allows you to earn cashback on insurance, broadband, and energy switches.
Payout options include PayPal, bank transfer, and gift cards.
Smart Insight: Quidco sometimes partners with major brands for time-limited “double cashback” days.
Read our guide on: Cheapest Ways to Compare Insurance Deals Online
3. Airtime Rewards
Best For: Earning cashback automatically via your debit or credit card and applying it directly to your mobile phone bill.
How It Works:
Link your card.
Shop at participating retailers (e.g., Boots, Greggs, Wilko).
Cashback is automatically tracked and applied as credit to your phone bill.
Unique Angle: It’s one of the only cashback apps that doesn’t require you to click a link — perfect for in-store spending.
4. KidStart
Ideal For Parents and Grandparents:
Cashback goes directly into your child’s savings or Junior ISA.
Works with retailers like John Lewis, eBay, and Expedia.
Helps build long-term savings while spending on everyday items.
How Much Can You Earn Through Cashback?
Your earnings will vary based on how often and where you shop. Typical cashback rates range from:
1–5% on fashion and electronics
£10–£60 on broadband or insurance switches
£1–£5 on groceries via promotions
Many users report saving £100–£300 per year with regular use. The more intentional you are — particularly with high-value categories like utilities and financial products — the more you can earn.
Cashback on Insurance, Utilities, and Broadband
Cashback isn’t just for shopping. Many platforms pay substantial cashback for:
Switching car or home insurance
Signing up for broadband or mobile contracts
Switching energy suppliers
These categories often pay £20 to £80 per transaction and are among the most profitable for users.
Read our guide on: Cheapest UK Travel Insurance Policies
Read our guide on: How to Switch Car Insurance Providers and Save
Common Cashback Pitfalls to Avoid
To get the most from cashback, be aware of these common mistakes:
Forgetting to click through the cashback site: Always start from the cashback platform’s link to track the purchase.
Using invalid voucher codes: Codes not listed on the cashback site can void your cashback.
Switching tabs or opening new windows during checkout: This can break tracking cookies and cause your cashback to fail.
Pro Tip: Use a dedicated browser or private window when making cashback purchases to avoid interference from other plug-ins or trackers.
A Unique Strategy: Use Cashback for Annual Expenses
While many people use cashback sites for everyday shopping, one overlooked tactic is to plan cashback use around large annual expenses, such as:
Booking holidays or hotels online
Renewing car or home insurance
Upgrading a mobile phone contract
Purchasing electronics during sales periods
These high-value transactions can earn £50 or more per purchase — ideal for boosting your cashback total with minimal effort.
FAQs
Is cashback taxable in the UK?
In most cases, no — cashback is considered a rebate or discount, not income. However, if you receive cashback as part of business expenses or through cashback credit cards, speak with a tax adviser.
How long does cashback take to be paid out?
Depending on the retailer and platform, cashback can take anywhere from a few days to several months to clear. Insurance and broadband cashback typically take 90+ days to confirm.
Can I use cashback sites with voucher codes?
Yes, but only if the code is listed on the cashback platform. Using an external voucher code can invalidate your cashback.
Do cashback sites work on mobile?
Yes, most platforms offer mobile apps, and many retailers track cashback from mobile purchases. Just make sure to use the app or mobile browser link provided.
Are there limits to how much I can earn?
Most cashback platforms do not cap earnings for standard users. However, premium tiers may offer better rates or faster payouts.u.
Final Thoughts
Cashback sites are one of the easiest and most underrated ways to save money in the UK. By making simple changes to how you shop online — like clicking through a cashback platform before purchasing or linking your card to an app — you can earn back money on everyday spending.
While cashback shouldn’t replace smart budgeting, it’s a powerful complement. Used wisely, it can cover the cost of birthdays, help fund your savings, or simply reduce the sting of rising prices. And since it’s free to use, there’s very little downside — only potential missed opportunities.
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Please note: All content on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Always seek guidance from a qualified financial adviser before making any financial decisions.
