LloydsTSB Save The Change Fun Loophole

freebird65

I've received my money too - but I didn't manage the full amount so won't be eligible for the competition.

I also seem to be in the minority in that I'm going to keep the STC account going. It's attached to my main bank a/c and seems quite handy for slowly saving towards my next holiday and I'm quite happy to see little amounts swept in there. I'm going to keep it for now and see how it goes.

Well done all who got the whole amount....and on more than one account!

Counter55

I have my 2 x £40.
I received my paper statement for my Online Saver today. It included an "Annual Interest Summary" for y/e 5/4/07 which LTSB says I can use to complete my tax return - although it also states I can request a Tax deduction certificate if I am going to reclaim tax. The interest quoted is that received on 31/3/07. But, it doesn't include the £40 matching payment received in March. Given LTSB are paying me £40 NET (£50 less 20%), why doesn't the annual summary include this £50 gross amount?
I have never understood why tax was deducted when it is an incentive not interest received. (I asked at the branch but the advisor didn't know)
Anybody have any answers?

LilDevil

Paul_Herring wrote: »

... aren't you subscribed to Martin's email?

No, sadly I'm not, I can't use my work pc and I'm usually exhausted by the time I get home.

Although having said that, I will subscribe and make more of an effort from now on!!:D

Paul_Herring

Counter55 wrote: »

I have my 2 x £40.
I received my paper statement for my Online Saver today. It included an "Annual Interest Summary" for y/e 5/4/07 which LTSB says I can use to complete my tax return - although it also states I can request a Tax deduction certificate if I am going to reclaim tax. The interest quoted is that received on 31/3/07. But, it doesn't include the £40 matching payment received in March. Given LTSB are paying me £40 NET (£50 less 20%), why doesn't the annual summary include this £50 gross amount?
I have never understood why tax was deducted when it is an incentive not interest received. (I asked at the branch but the advisor didn't know)
Anybody have any answers?

Because it's a summary of interest, which the STC payments aren't? The payments are liable for tax, however, because they are income. (Unlike, say, the cashback you get on credit cards which are technically discounts)

p1an0player

Paul_Herring wrote: »

Because it's a summary of interest, which the STC payments aren't? The payments are liable for tax, however, because they are income. (Unlike, say, the cashback you get on credit cards which are technically discounts)

Isn't income is taxed at 22% (basic rate) not 20%? Although Gordon's changing it soon..

Paul_Herring

p1an0player wrote: »

Isn't income is taxed at 22% (basic rate) not 20%? Although Gordon's changing it soon..

Income from employment is (currently) taxed at 10%, 22% or 40%. Other income is (generally) taxed at 20% at source - hence the 20% tax on interest if you havent filled in an R85 . If your marginal rate is not 22%, then you pay/reclaim tax at your marginal rate (0%, 10% or 40%)

Counter55

Paul_Herring wrote: »

Because it's a summary of interest, which the STC payments aren't? The payments are liable for tax, however, because they are income. (Unlike, say, the cashback you get on credit cards which are technically discounts)

Well I agree that they are not interest - it's just that LTSB seemed to be treating them as such. From a post a while ago, part of the T&C were quoted:

"4.Tax will be payable on your matched payment on the same basis as the interest on your nominated savings account. For example, if you currently receive interest net (after the deduction of income tax) on your nominated savings account and the amount to be matched is £10 you will receive £8 in matched funds."

I always considered them as an incentive, similar to the £100 amounts banks are offering to open accounts or the £15 Egg used to offer to use Egg Money Manager. No tax is taken off them. I can't see how they are income because I haven't lent assets to LTSB (so not interest or rent) nor done work for LTSB.

careerwumman

How do we enter the contest if we got the full £40 both months?

Secret_Lady

MSE_Wendy wrote: »

Well done everyone.

Please look out for a new thread that will announce how to enter the contest.

Wendy

Keep your eyes open for a new thread, see above.

finbarr1969

I've received my STC payments too :j

£40 for February
£40 for March

Well done everybody!

Finbarr.