Halifax Reward Account - is the £5 taxable?

Tammy2

I've just requested an upgrade. I'm a non tax payer and wondered if I need to submit form R85 for the account. Although, it isn't interest, is it.

Ed-1

Tammy2 wrote: »

I've just requested an upgrade. I'm a non tax payer and wondered if I need to submit form R85 for the account. Although, it isn't interest, is it.

It's paid net of tax; the gross amount is £6.25 although there are strong rumours that the 20% tax on savings is to be abolished in today's budget. However, for the time being, you can't register an R85 on a Reward account. You have to claim the tax back from HMRC using form R40.

Tammy2

Oh OK, thanks. I had no idea the £5 was net. Must get better at reading the small print!

Edit: When would I do that? After a full calendar year with the account or to align with the end of tax year?

Ed-1

Tammy2 wrote: »

Oh OK, thanks. I had no idea the £5 was net. Must get better at reading the small print!

Edit: When would I do that? After a full calendar year with the account or to align with the end of tax year?

You can claim back any tax paid at the end of a tax year.

Tammy2

Thank you