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Halifax reward non tax payer

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
I am NOT a mortgage & insurance adviser - or anything to do with finance, that was put on by the new system I dont know why?!

Comments

  • jem16
    jem16 Posts: 19,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    Vortigern Posts: 3,306 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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
    noh Posts: 5,817 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 13 July 2013 at 11:09PM
    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
    treasures Posts: 66 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    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
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