We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Halifax Reward Account - interest

Hi
Apologies if this has been asked before but I have searched and not been able to find it.
I have a Halifax Reward account and am about to return to studying so am filling in R85 forms to get interest in gross.
The Halifax website says that the £5 reward is paid net with tax at 20%. Does this mean that if I send them an R85 then I should get more than £5 per month? Or am I misreading what they say?

Cheers
SS
GC 2016 Jan £259.35/£250 Feb £lost track/£250 Mar £163.70/£250
Emergency Fund Savings Target £600/£2,400
Other Savings Target £664.50/£1,000
NSD Mar 6/16
Stoozed spend offset £1,225.20/£3,300

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 3 August 2011 at 6:16PM
    R85 can't be accepted.

    You need to complete an R40 form (a letter would probably have the same effect) and reclaim any tax deducted from HMRC.

    http://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/
    The £5 Reward payment is paid 'net' of income tax. This means we pay it after taking off income tax at the rate set by law (currently 20%). If you're a higher-rate taxpayer, you may have to pay extra income tax on the reward payment. The amount before we take off income tax is £6.25. You may reclaim tax from HM Revenue & Customs if the amount of tax we have taken off is more than you have to pay. This may change in the future. To find out more visit www.hmrc.gov.uk/incometax.
  • Thanks, O4U, I didn't see that (or probably didn't read that far :o)

    Cheers
    SS
    GC 2016 Jan £259.35/£250 Feb £lost track/£250 Mar £163.70/£250
    Emergency Fund Savings Target £600/£2,400
    Other Savings Target £664.50/£1,000
    NSD Mar 6/16
    Stoozed spend offset £1,225.20/£3,300
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.1K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.7K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.