Halifax Account - Tax on Reward Question

glider3560

Just wondering where you declare the reward payment on a tax return or other HMRC forms? Does it come under interest?

Also, do Halifax provide a section 975 certificate for this account every year?

robbo990

The Reward Payment is already taxed - you need to notify Halifax if you pay the higher rate of Income Tax.

glider3560

robbo990 wrote: »

The Reward Payment is already taxed - you need to notify Halifax if you pay the higher rate of Income Tax.

I was thinking more about reclaiming the tax if one isn't a tax payer. I was wondering where I would put it on the forms?

Lokolo

glider3560 wrote: »

I was thinking more about reclaiming the tax if one isn't a tax payer. I was wondering where I would put it on the forms?

http://www.hmrc.gov.uk/forms/r40.pdf

rb10

Glider - although it's not strictly 'interest', I'd have still thought that's the place on the form to put it. The R40 Guidance Notes do say:

3.1-3.7
Please include income received from:
• banks, building societies and other deposit takers (including Internet accounts)
– from current and deposit accounts

Although it does then go on to only mention interest, this bit is talking about all income, so would include the Reward payment. It's a grey area, so I don't think they can complain if you put it there.

Robbo - if you are a higher rate taxpayer (or, indeed, do not pay tax at all), then you do not contact Halifax, but instead have to deal directly with HMRC.

withnell

Just put it in the interest box on the tax return, gross 6.25, tax 1.25 for each month