Halifax Rewards Current account £5 per month

electric_comperella

Hi all

not sure if this is the right place to post this query...(sorry if it's been asked before - did search but couldn't find the needle in the proverbial haystack!)

quick one...

the rewards current account offers £5 per month in exchange for a £1000 pcm credit....

that £5 is net (after tax)

on the site it says speak to HM revenue and customs but wasn't sure how to approach it...

anyone done this?

jambosans

I'm not sure what you're asking, aside from the obvious, no I haven't contacted HMRC about my Reward Current Account.

You only need to contact HMRC if you don't pay taxes, and want to claim the £1.25 back to make the payment gross. Read the blurb:-

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.

electric_comperella

sorry I perhaps didn't make myself clear - tired sorry!

that's exactly what I was asking, what would a non-tax payer have to do? and has anyone actually done this?

jambosans

electric_comperella wrote: »

that's exactly what I was asking, what would a non-tax payer have to do? and has anyone actually done this?

Ah right, well I'm not actually not sure (unfortunately I pay taxes), but I would do as the blurb suggests, contact HMRC and ask.

I've had a wee look around the HMRC Website, and I think the below link is what you're looking for. It's a section on reclaiming taxed interest for savings accounts. Although the Reward payment is technically not interest, it is a net payment, and it's the only section that looks along the right lines:-
http://www.hmrc.gov.uk/incometax/tax-free-interest.htm

glider3560

You need to complete a form R40
http://www.hmrc.gov.uk/forms/r40.pdf

I've used this form before and it is a very painless process.

dingdong1984

My £5 hasn't appeared yet this month, has went in on the 1st any other time!

Dave_save

dingdong1984 wrote: »

My £5 hasn't appeared yet this month, has went in on the 1st any other time!

Mine went in this morning. It's my first fiver. I shall frame it.. :T

jennifernil

Yes, I have reclaimed the £1.25 per £5 as I am a non taxpayer. I have 3 Reward accounts, so it is worth me taking the time to do it.

As said, I used form R40 . I also had some tax to reclaim on another account that I had neglected to register for gross interest.

You cannot register the Reward account so always have to reclaim. I got my refund within 2 weeks.

electric_comperella

jennifernil wrote: »

Yes, I have reclaimed the £1.25 per £5 as I am a non taxpayer. I have 3 Reward accounts, so it is worth me taking the time to do it.

As said, I used form R40 . I also had some tax to reclaim on another account that I had neglected to register for gross interest.

You cannot register the Reward account so always have to reclaim. I got my refund within 2 weeks.

When do you claim, after each payment or at the beginning/end of the tax year?

glider3560

electric_comperella wrote: »

When do you claim, after each payment or at the beginning/end of the tax year?

At the end of the tax year, so after 5th April.

n6600

jennifernil, how do you open 3 accounts?