Halifax changes

Kavanne

I don't REALLY want to book an appointment as I don't want to be sold anything and I don't imagine they'll get any points for just changing me over to reward and not doing anything else....

rb10

Kavanne wrote: »

I don't REALLY want to book an appointment as I don't want to be sold anything and I don't imagine they'll get any points for just changing me over to reward and not doing anything else....

In that case, try over the phone. Less chance of sales pitch there. If they can't do it on the phone or you'd rather do it in branch, be assertive! They can do it at the counter or reception desk. Most staff will have access to the system that does this. Tell them that you will not be sold anything in an appointment and that you just want this switched over.

Kavanne

Thanks, rb. Was told in branch a few weeks ago it can't be done on phone or internet so would have to go in... another sales ploy? lol

Mikeyorks

rb10 wrote: »

Yes, that is all correct.

Excellent thank you. Fortunately the OH knows the manageress at the local Branch, from respective children's playgroups many years ago ... so we tend not to be pressurised.

If they're as well organised as they were in moving to the HICA, several years ago, it's simply a question of signing a pre-prepared A4. Much easier than completing a formal application - which tends to be aimed primarily at transfers in to Halifax - and just confuses everyone.

Still a bit puzzled that, for this Reward account, the facility to file an R85 and get the interest gross (on OH account) appears - superficially - to be unavailable?

All customers, irrespective of tax status, will be paid £5 net (£6.25 gross with 20% deducted) for funding their account with £1,000 a month.
Non-taxpayers will be able to reclaim the £1.25 already deducted via the usual HMRC forms (we will provide tax certificates for this purpose).

.... may just be careless drafting of the Press Release .... will see next week.

Kavanne

Mikeyorks wrote: »

.... may just be careless drafting of the Press Release .... will see next week.

Seems quite clear to me... Halifax will pay all interest NET and you need to go and claim it back from HMRC if you are not a taxpayer. And they will give you the necessary certificate to do this....

rb10

Mikeyorks wrote: »

Still a bit puzzled that, for this Reward account, the facility to file an R85 and get the interest gross (on OH account) appears - superficially - to be unavailable?

Agreed, seems very odd. A very time-consuming way around it. I cannot see HMRC being totally chuffed when they get loads of forms to claim just £15 each! Of course, most people probably won't bother.

Mikeyorks

Kavanne wrote: »

Seems quite clear to me... Halifax will pay all interest NET and you need to go and claim it back from HMRC if you are not a taxpayer. And they will give you the necessary certificate to do this....

I think, if you read my post clearly .... it's equally clear to me! The question - clear or heavily implied - is 'why would they (deliberately?) do that'? It makes no real sense ... as Halifax are very good at handling R85s. One of the first Banks to dispense with them on paper and one of the Banks that will accept a net / gross split on a joint account.

As a minimum it's going to tee off HMRC who will have to cope with claims of a derisory value. And it's going to tee off some customers .... who have to wait over a year - and complete an R40 .... before they see the gross value of the payment.

And I still suspect careless drafting.

withnell

Mikeyorks wrote: »

As a minimum it's going to tee off HMRC who will have to cope with claims of a derisory value. And it's going to tee off some customers .... who have to wait over a year - and complete an R40 .... before they see the gross value of the payment.

And I still suspect careless drafting.

How many people paying 1000 quid a month into a current account will be non-taxpayers though?

Mikeyorks

My wife ..... to name 50% of the occupants here.

There will be thousands ... who pass (doesn't have to be 'pay') £1k through a current HICA to attain the 6.12% first on offer ... and who aren't taxpayers. The interest rate attracted a lot of people who funded the £1k from savings (then SO'ed it back the next day) ..... and who will now see, with rate reductions, the value in switching to the new account.

You need to keep a permanent £15,000 in a HICA (2.5% to £2500 and 0.1% thereafter) to obtain the £6.25 gross per month on offer from the new account. It's attractive when you do the arithmetic ..... and an easy conversion (account number remains) makes it doubly so.

opinions4u

Mikeyorks wrote: »

The question - clear or heavily implied - is 'why would they (deliberately?) do that'?

Because the payment is not interest, an R85 cannot be registered on the account without new legislation being passed.

HMRC won't allow it. HMRC get all the extra paperwork as a result.