5% Savings Loophole

colsten

I don't think the cashback from Barclays is taxable. It's just a discount for a bill you paid, not taxable income.

I don't have the Barclays account (cba for potentially £3/mth) but if I did have it, I would not declare the £36 (if I did manage to make that much) as income on my annual tax return.

TheNewGuy_2

DocOxon wrote: »

But it seems to me overlooked.
If you upgrade your barclays account to Blue Rewards, they will give you £7 cash back. But you do need two DDs and pay in £800. They will charge a £3 monthly fee, so it means you get £4 net every month, plus access to several discounts, such as %7 off Expedia bookings, or casgback in Robert Dyas...

With Santander they also give cash back of %3 on some bills, so it's better have the mobile bill coming off there.
I lacked one DD for my Halifax, so I just set up a DD of £1 to my favourite charity...
So still even if you pay £12pa for charity in one of the accounts isn't that bad...

Hope this helps, this is my first post.:beer:

Hey that's brilliant thanks!

ceredigion

TheNewGuy wrote: »

Hey that's brilliant thanks!

Which bit ?

TheNewGuy_2

ceredigion wrote: »

Which bit ?

The Blue rewards idea. It's too much effort for £4 a month but a very good idea nethertheless

colsten

TheNewGuy wrote: »

The Blue rewards idea. It's too much effort for £4 a month but a very good idea nethertheless

Brilliant and a very good idea but too much effort?!!?!?!??! #realitycheck

caveman38

Is it acceptable to fulfil the T&C of TSB by furnishing the account with £500 per month and having half (£250) transferred to the RS a day later also doing the same with Club Lloyds or do the transactions have to come into the current account independently?

jimjames

caveman38 wrote: »

Is it acceptable to fulfil the T&C of TSB by furnishing the account with £500 per month and having half (£250) transferred to the RS a day later also doing the same with Club Lloyds or do the transactions have to come into the current account independently?

The £500 can come in any combination, even 500 x £1 if you so wished.

DocOxon

ceredigion wrote: »

Your £4 net is really gross as it is taxable, so for most will be £3.20p . Halifax is £5 net of basic rate tax.

Thanks for the input, but allow me to disagree with you. The issue has been discussed in the Telegraph:

google an article title: 'Why is 5pc interest taxed and not 5pc cashback?' in the telegraph (I am not allowed to post links as a new user)

Certainly this is less effort than getting the %5 discount on the first £100 from TSB with a contactless card (not all places take contactless, at least Tesco, Sainsbury and so forth in my area). It's the same effort as Halifax for £5: they only give you £4.

What I said about setting up a DD for £1 for a charity is for any account, say even TSB for the 5% interested/contactless cashback. If you do get £5 back and £7.8 interest net a month on £2K and you are one DD short, it's jsut worth making the 12.8 into 11.8 by donating £1 for charity, rather than not getting it.

ceredigion

DocOxon wrote: »

Thanks for the input, but allow me to disagree with you. The issue has been discussed in the Telegraph:

google an article title: 'Why is 5pc interest taxed and not 5pc cashback?' in the telegraph (I am not allowed to post links as a new user)

Certainly this is less effort than getting the %5 discount on the first £100 from TSB with a contactless card (not all places take contactless, at least Tesco, Sainsbury and so forth in my area). It's the same effort as Halifax for £5: they only give you £4.

What I said about setting up a DD for £1 for a charity is for any account, say even TSB for the 5% interested/contactless cashback. If you do get £5 back and £7.8 interest net a month on £2K and you are one DD short, it's jsut worth making the 12.8 into 11.8 by donating £1 for charity, rather than not getting it.

Your trying to.
"Teach your grandmother to suck eggs"

bigadaj

ceredigion wrote: »

Your trying to.
"Teach your grandmother to suck eggs"

Could be worse, at least it's not the mail.