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  • FIRST POST
    • Steveianson
    • By Steveianson 12th Jul 17, 9:30 AM
    • 3Posts
    • 0Thanks
    Steveianson
    Halifax "reward"
    • #1
    • 12th Jul 17, 9:30 AM
    Halifax "reward" 12th Jul 17 at 9:30 AM
    I am going to go over my interest earned tax free allowance this year. Do I take into account the £3 Halifax reward as interest?
Page 1
    • uknick
    • By uknick 12th Jul 17, 10:06 AM
    • 709 Posts
    • 313 Thanks
    uknick
    • #2
    • 12th Jul 17, 10:06 AM
    • #2
    • 12th Jul 17, 10:06 AM
    [EDIT : Ignore sentence as completely wrong ] It should be declared as interest income, but with tax already deducted at source.

    But, is not counted towards your savings allowance

    http://www.moneysavingexpert.com/news/banking/2016/07/halifax-barclays-or-co-op-bank-customer-you-may-need-to-pay-tax-on-your-rewards
    Last edited by uknick; 12-07-2017 at 10:28 AM.
    • xylophone
    • By xylophone 12th Jul 17, 10:10 AM
    • 23,447 Posts
    • 13,634 Thanks
    xylophone
    • #3
    • 12th Jul 17, 10:10 AM
    • #3
    • 12th Jul 17, 10:10 AM
    The Halifax Reward is not interest - if it were, it would be paid gross as is now the normal arrangement with interest.

    It is "other taxable income" and recorded as such on any tax return.

    http://forums.moneysavingexpert.com/showthread.php?t=5442715

    http://tax-essentials.indicator.co.uk/advisors/newsadvice/7026/news/7027/news_story/735/?cookieChecked=1&i=1
    • uknick
    • By uknick 12th Jul 17, 10:22 AM
    • 709 Posts
    • 313 Thanks
    uknick
    • #4
    • 12th Jul 17, 10:22 AM
    • #4
    • 12th Jul 17, 10:22 AM
    Thanks for pointing that out Xylophone.
    • newlease
    • By newlease 1st Oct 17, 6:48 PM
    • 79 Posts
    • 13 Thanks
    newlease
    • #5
    • 1st Oct 17, 6:48 PM
    • #5
    • 1st Oct 17, 6:48 PM
    The Halifax Reward is not interest - if it were, it would be paid gross as is now the normal arrangement with interest.

    It is "other taxable income" and recorded as such on any tax return.

    http://forums.moneysavingexpert.com/showthread.php?t=5442715

    http://tax-essentials.indicator.co.uk/advisors/newsadvice/7026/news/7027/news_story/735/?cookieChecked=1&i=1
    Originally posted by xylophone
    Is the amount recorded as gross or net? For 2016-17 it was 67.50 gross, 54 net after the monthly net rate changed from 5 to 3 for the last 3 months of the tax year.

    I am doing (trying to, if HMRC's site stops crashing) my self assessment online. If you could tell me precisely where and to what question this should be answered that would be tremendous. I searched and asked on the "main" thread but that is a thread on the Current Accounts section and I'm not sure it will get answered.
    • uknick
    • By uknick 1st Oct 17, 6:58 PM
    • 709 Posts
    • 313 Thanks
    uknick
    • #6
    • 1st Oct 17, 6:58 PM
    • #6
    • 1st Oct 17, 6:58 PM
    I declared it gross, £67.50, and then put in £13.50 interest already paid. The system rounds it to show received £67 gross and interest paid as £14.
    • Dazed and confused
    • By Dazed and confused 1st Oct 17, 7:00 PM
    • 1,868 Posts
    • 830 Thanks
    Dazed and confused
    • #7
    • 1st Oct 17, 7:00 PM
    • #7
    • 1st Oct 17, 7:00 PM
    But it isn't interest so why declare it as such?
    • newlease
    • By newlease 1st Oct 17, 7:31 PM
    • 79 Posts
    • 13 Thanks
    newlease
    • #8
    • 1st Oct 17, 7:31 PM
    • #8
    • 1st Oct 17, 7:31 PM
    Showing as interest with tax already paid as was done the usual way until last year for bank interest was my initial thought but the more correct way of showing the "reward" as income seems to have been concluded so I would prefer doing that to be proper. From what I understand the end result would be the same unless by declaring as interest you are then benefiting from the interest allowance.

    For those putting as income, where and how please?
    • uknick
    • By uknick 2nd Oct 17, 8:53 AM
    • 709 Posts
    • 313 Thanks
    uknick
    • #9
    • 2nd Oct 17, 8:53 AM
    • #9
    • 2nd Oct 17, 8:53 AM
    But it isn't interest so why declare it as such?
    Originally posted by Dazed and confused

    My typo saying interest, I should've said show the tax already deducted.


    As to where to put it, I don't have access to my online return, but it is boxes 17 and 19 on the hard copy I saved at the end of my online submission relating to "Other UK income"
    Last edited by uknick; 02-10-2017 at 8:56 AM.
    • xylophone
    • By xylophone 2nd Oct 17, 10:12 AM
    • 23,447 Posts
    • 13,634 Thanks
    xylophone
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/503309/sa100_2016.pdf

    The Halifax reward is paid net.

    Box 17 - insert gross reward.

    Box 19 - insert tax deducted.
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