Halifax Reward Charges

PeacefulWaters

sealdriver wrote: »

They get interest on my money

Well my average balances is about £50. So that'll be worth £2 a year to them at their mortgage SVR.

SuperHan

PeacefulWaters wrote: »

Well my average balances is about £50. So that'll be worth £2 a year to them at their mortgage SVR.

So that makes the £75 a year they pay you totally worthwhile.

colsten

SuperHan wrote: »

So that makes the £75 a year they pay you totally worthwhile.

To be precise, they pay customers £60, and the HMRC £15.

Hominu

colsten wrote: »

To be precise, they pay customers £60, and the HMRC £15.

Unless you don't pay tax, in which case they pay you £75.

The only confusing bit is that if you are on 40% tax they still pay the HMRC £15 and it's upto the account holiday to pay the other 20%.

PeacefulWaters

Hominu wrote: »

Unless you don't pay tax, in which case they pay you £75.

The only confusing bit is that if you are on 40% tax they still pay the HMRC £15 and it's upto the account holiday to pay the other 20%.

A non-taxpayer will receive £60 from Halifax and can then claim back the £15 from HMRC.

Archi_Bald

Looking at their T&Cs, it seems they can handle R85s.

7.5 Where we add reward payments to your account, we pay
it “net” (after deduction of income tax currently 20%). You cannot register to receive this payment gross as a non-UK tax payer. If you have an interest bearing account, your interest will be paid either net or gross dependent on your personal circumstances. You may claim income tax back from HMRC if the amount of tax we have taken off is more than you have to pay. Interest will only be paid gross if you are registered with us as a non-tax payer. A separate registration form is required for each account you hold. Higher rate tax payers may have to pay additional tax themselves.

SuperHan

colsten wrote: »

To be precise, they pay customers £60, and the HMRC £15.

But that made my post a whole lot less snappy

I probably should have said the £75 you cost them a year...

PeacefulWaters wrote: »

A non-taxpayer will receive £60 from Halifax and can then claim back the £15 from HMRC.

And no, you just tell them you're not a tax payer and they pay gross. Much easier than chasing HMRC.

PeacefulWaters

SuperHan wrote: »

And no, you just tell them you're not a tax payer and they pay gross. Much easier than chasing HMRC.

Yet their T&Cs state:

Where we add reward payments to your account, we pay it “net” (after deduction of income tax currently 20%). You cannot register to receive this payment gross as a non-UK tax payer

http://www.halifax.co.uk/bankaccounts/pdf/reward-current-account-guide.pdf

It's not interest. So an R85 isn't allowed.

colsten

PeacefulWaters wrote: »

Yet their T&Cs state:

Where we add reward payments to your account, we pay it “net” (after deduction of income tax currently 20%). You cannot register to receive this payment gross as a non-UK tax payer

http://www.halifax.co.uk/bankaccounts/pdf/reward-current-account-guide.pdf

It's not interest. So an R85 isn't allowed.

You are mis-reading the clause, PW. What you quote applies to non-UK tax payers, i.e. people who are not UK residents for tax purposes. The bit relevant to people who are UK residents for tax purposes but whose low income means they pay no tax is: Interest will only be paid gross if you are registered with us as a non-tax payer. This registration is done by means of an R85, surely?

The Halifax lawyers could have written this clause a lot clearer but they haven't.

noh

A R85 cannot be used to get the Reward payment paid gross.
That is because, as correctly stated by PeacefulWaters, the payment is not interest.
The Halifax terms and conditions are clear and correctly written.