Halifax Reward Current Account - use R85

7sefton

Sorry if this has been asked elsewhere....

I don't pay tax on my savings, so usually fill out an R85 form when I open a savings account. I now have a Halifax Reward current account that pays £5 per month NET provided it is credited with £1k per month. How do I claim the interest gross - just use an R85 form? Or is it more complicated because it isn't an interest payment like usual, but a 'reward payment'.

Thanks!

PinkPig

From posts other people have written here, because Natwest call it a "reward" rather than interest, they don't let you fill in an R85 form to get the reward without tax deducted. You have to claim back the extra tax from HMRC at the end of the tax year instead.

rb10

It explains on their website:

An important note…
This payment is 'net' of income tax. This means we pay it after taking off income tax at the rate set by law (currently 20%). If you are a higher-rate taxpayer, you may have to pay extra income tax on the reward payment. The gross amount is £6.25. This is the amount before we take off income tax. You may reclaim tax from HM Revenue & Customs if the amount of tax we have taken off is more than you have to pay. To find out more visit https://www.hmrc.gov.uk/incometax

You will have to claim it back from HMRC via the link given.

tobiascurious

most non-taxpayers will not be paying £1,000 per month into an account

M_Thomson

PinkPig wrote: »

From posts other people have written here, because Natwest call it a "reward" rather than interest, they don't let you fill in an R85 form to get the reward without tax deducted. You have to claim back the extra tax from HMRC at the end of the tax year instead.

Natwest? It's Halifax which is a Bank Of Scotland (BoS) company which in turn is part of Lloyds Banking Group. I think you are thinking of RBS (Royal Bank Of Scotland) who own Natwest and are nothing at all to do with Halifax, BoS or Lloyds.

jennifernil

tobiascurious wrote: »

most non-taxpayers will not be paying £1,000 per month into an account

That is a rather blinkered attitude!

How about stay-at-home-mums, or those who only have a small pension, but who are supported by their partner/husband?

MSE advice is to use your tax allowance, so savings are often in the non-taxpayer's name.

No problem circulating £1000 of savings or of the partner's income through several accounts.

OP.....you cannot register an R85, you need an R 40 (I think) to reclaim at the end of the tax year. Very simple form to fill in, my refund only took about 3 weeks last year.

The £5 is entered as £6.25 gross, £1.25 tax deducted.

glider3560

tobiascurious wrote: »

most non-taxpayers will not be paying £1,000 per month into an account

I'm a non tax payer and pay £1000 per month into the account. It isn't my salary, but comes from another savings account.

Tax has to be claimed at end of tax year using R40. Very simple, provided you keep records of all your income.

noh

glider3560 wrote: »

I'm a non tax payer and pay £1000 per month into the account. It isn't my salary, but comes from another savings account.

Tax has to be claimed at end of tax year using R40. Very simple, provided you keep records of all your income.

In fact you don't even need to use your own money.
I have an overdraft facility on one of my Halifax accounts and use £1000 of their money to cycle through my 3 Reward accounts to gain £15 a month.

AnonymousForObviousReason

noh wrote: »

In fact you don't even need to use your own money.
I have an overdraft facility on one of my Halifax accounts and use £1000 of their money to cycle through my 3 Reward accounts to gain £15 a month.

Your post is relevant to my interests, some questions:
Can you still do this? Are the 3 reward accounts all at Halifax? What's the minimum time the money is required in each account? Thank you in advance for your answers or link.

£135 a year (even from my own 1K) seems like a good return - higher tax payer here. Random Rant Mode: I don't mind being in the 40% tax bracket for my salary I think it is fair, giving back to society. For some reason when it comes out of my savings it really annoys me being taxed at this amount - I know there is no solution as it'd be a massive loop hole but just makes me feel like I'm being taxed twice.

noh

HBOS now only allow one sole and one joint account per customer.
There is no minimum time that the money needs to be in the account all that is required, to earn the £5 reward, is that a minimum of £1000 is deposited per month. You can withdraw it immediately.

AnonymousForObviousReason

noh wrote: »

HBOS now only allow one sole and one joint account per customer.

That'll teach me to ignore MSE for a year so. Thanks for your prompt reply.