Should The Merger Bonus Taxed?

blackadder1

Our children had accounts with the Universal building society and as such received merger bonuses when the Newcastle took them over earlier this year. Hwever when we received the bonuses they were net of tax due to myself and my wife being the first named on the accounts. I feel the children have lost out on £80 each due to tax being deducted at source. I have gone back to the Newcastle who have not been particularly helpful. If we had known this before they issued the cheques we would have changed our names for the children's. Both accounts receive interest gross so I cannot see why the bonus was not treated in the same way.

Has anyone got any ideas on how we could recoup the lost £160 ?

Many Thanks

Blackadder 1

windym_2

Try here. http://www.hmrc.gov.uk/students/overpaid_tax_back_1_1.htm

CLAPTON

i would suggest you proceed with some caution.

a joint a/c is usually considered to be owned equally betweeen the two people.

so your children dont have a/c with the B Soc but they share a joint a/c.

if you or your wife are tax payers then the a/c shouldn't have had R85s anyway.
so by raising the issue with the HMRC you may find you are being charged for the last 6 years of unpaid tax on your share of the interest. The HMRC may also enquire about the origin of the childrens money..if it came from the parents then only if the interest per year is under 100 will it be deemed the childrens rather than yours.