Halifax reward non tax payer

TREVORCOLMAN

One of the family is a non tax payer. The have registered with the Halifax and have been told that they will still only receive £5 per month and that they have to claim the other £1.25 back from the tax man?

Anyone else in same situation?

Thanks

jem16

TREVORCOLMAN wrote: »

One of the family is a non tax payer. The have registered with the Halifax and have been told that they will still only receive £5 per month and that they have to claim the other £1.25 back from the tax man?

Anyone else in same situation?

Thanks

That's correct. Unfortunately Halifax think of it as a Reward and not interest.

Vortigern

I've just had an Annual Reward Summary with my 5th July statement. It covers the tax year to 5th April 2013. If I were a non-taxpayer I could use it (together with HMRC Form R40) to reclaim the £15 tax deducted.

Apparently Halifax does not allow HMRC Form R85 to be used to make the rewards tax-free.

noh

Vortigern wrote: »

I've just had an Annual Reward Summary with my 5th July statement. It covers the tax year to 5th April 2013. If I were a non-taxpayer I could use it (together with HMRC Form R40) to reclaim the £15 tax deducted.

Apparently Halifax does not allow HMRC Form R85 to be used to make the rewards tax-free.

It's not Halifax it is HMRC that do not allow form R85 to be used. The reason being that the payment is not classed as interest. It is classed as an "Annual Payment"
I posted on this a couple of years back after digging around the HMRC manuals available online.
Hope the links still work.

http://forums.moneysavingexpert.com/showpost.php?p=41200528&postcount=29

treasures

Hi - I am in the same situation. I fill in a R40 form to claim the £15 tax back every year. I hope that this helps