Halifax Rewards - gross or net?

MegaMiniMouse

I daresay this has been raised before, but has anybody been known to challenge Halifax's policy to pay the £5 monthly reward net of tax, even to non-taxpayers?

So far as I know, the only people who gain from the policy are HMRC.

Ed-1

MegaMiniMouse wrote: »

I daresay this has been raised before, but has anybody been known to challenge Halifax's policy to pay the £5 monthly reward net of tax, even to non-taxpayers?

So far as I know, the only people who gain from the policy are HMRC.

Halifax won't pay the reward gross as it's not interest. But you can claim back the tax you pay on the rewards from HMRC at the end of the tax year using form R40, just as you would on interest if your total income is below the tax free personal allowance (or from 6th April 2015 your total income is below £15500 as the personal allowance is rising to £10500 and the starting rate band for savings income is rising to £5000 to be taxed at 0%, down from 10%).

PeacefulWaters

There's nothing to challenge. They are compliant with HMRC regulations.

Non taxpayers can claim tax back by submitting an R40 form to HMRC.

MegaMiniMouse

Thanks - I will reclaim my £15 next April! I wonder why Halifax don't mention the R40 form in their small print...

xylophone

This has come up a number of times - for example

https://forums.moneysavingexpert.com/discussion/4702459

MegaMiniMouse

What evidence do you have to provide in support of your claim?

YorkshireBoy

MegaMiniMouse wrote: »

What evidence do you have to provide in support of your claim?

Form and associated guidance notes for completing the form here...

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=pf-A5D0R72E&formid=818

MegaMiniMouse

YorkshireBoy wrote: »

Form and associated guidance notes for completing the form here...

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=pf-A5D0R72E&formid=818

Thanks, I read the first 10 pages or so before falling asleep. Hopefully the Halifax will send me some kind of annual statement which will satisfy HMRC.

xylophone

I daresay this has been raised before, but has anybody been known to challenge Halifax's policy to pay the £5 monthly reward net of tax, even to non-taxpayers?

So far as I know, the only people who gain from the policy are HMRC.

The Halifax used to supply a clearer explanation for non taxpayers?

https://forums.moneysavingexpert.com/discussion/1964601

post 2

Archi_Bald

It's still pretty clear:

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.

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

There is nothing to challenge.

thebritishbloke

I actually managed to challenge this, I had been told previously that they can't do it. Phoned up for another issue and just double checked whilst I was there, the guy said that he's checked this before and done it multiple times and it's always worked, he doesn't know why others flat out refuse to do it.

Got my first gross reward payment this month.